This website is a testimony to the problems Canadian Student Loan borrowers experienced from approximately 1996 to 2008 and until their loans were paid off.

The privatization of the Student Loans system by the Chretien and Martin Liberal governments broke the system and defaulted thousands of borrowers who were trying to pay their loans. There were even stories of suicide due to the harassment of borrowers.

Read the report that I prepared back in 2007 here. Canada Student Loans-The Need for Change Fortunately the new Conservative government at the time revamped the program and fixed the system for new borrowers, but borrowers under the previous program were left with ruined credit and continued harassment from debt collectors.

I call on the Canadian Government to apologize to the borrowers affected by this fiasco and make amends.

Unfortunately the Liberal government is again clobbering the Education system with their changes to International Student Visas. Yes, there's a problem, but instead of a well thought out plan, they have pulled the emergency brake on the train causing a derailment. This has introduced unprecedented instability for both private and public education institutions who serve both international and local students.

Universities have been forced to cancel programs and layoff hundreds if not thousands of full-time and contract instructors.

Again, the Liberal government has messed up the education environment.


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Forum LockedCRA messing with me

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Joined: 31/July/2012
Location: Nova Scotia
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    Posted: 31/July/2012 at 11:05am
So I defaulted on my Canada student loans in 2006. I had a payment arrangement with them that was quite low, 75$ a month, but managed it for several years.

Last year, after things were finally looking up for me for a bit, I lost my job. It was all I could do to keep a roof over my head, seeing as I had just bought a new car, and had a daughter. I hadn't made a payment in about 5 months, but just recently found a new job, and was about to start making them again when I got the letter from CRA, demanding I contact them within 10 days or face legal action.

I did so today, and offered to resume the 75$ a month payment plan starting this very month. The representative wanted an over the phone run down of my income and expenses. I gave it to her, rent, 925$ a month, car payment, 400/mnth etc etc. It leave very little left over at the end of the month, especially with the provincial government just as trigger happy to get their own money.

This is where things got weird to me, the representative from CRA began to get very rude with me, commenting that that seemed awfully high for rent in NS, and could I find a cheaper place to live. Then asked me why I would buy a car instead of repaying them first (was living with girlfiend, together were could afford it, broke up, car was in my name :/ ). She even suggested I go get a second job to make the 318$ a month payment they want. Eventually told me she needs me to fax in my lease agreement, proof of the monthly car payment and pay stubs to confirm my income. But she was extremely rude and judgemental while doing so.

So I guess my question is, what is the policy in CRA with accepting payment plans? Can they refuse my proposal then garnish me? Or reposses my car? Can they actually tell me to move someplace cheaper so I can pay them more?

Freaking out here, someone please help!
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Radagast View Drop Down
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Joined: 11/August/2005
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Radagast Quote  Post ReplyReply Direct Link To This Post Posted: 31/July/2012 at 1:54pm
Your car loan is most likely secured which should mean that nobody (other than the company holding the car loan) can "repossess" your car.

This sounds a lot more like a collection agency than CRA, but perhaps they have been hiring from those companies?

In any case, they can tell you almost whatever they want, but you don't have to listen to them about many things including your living arrangements.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 01/August/2012 at 3:12am
No, CRA acts like that. One of the collection directives is to scrutinize all of a person's expenses and in interrogate people concerning them. The government trains their agents to think of the government before anything else. They are trained to find and collect money by whichever means is available to them and not truth. If it means abusing their power - so be it.   
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
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