You Tube OSAP info

In this You Tube video on the topic of OSAP by ExcalWeb at about 1:44 into the video the narrator comes in, along with some text on the screen, and speaks about the Ontario government forgiving outstanding student debts after 15 years.

Anyone have some knowledge about what the narrator is speaking of with regards to forgiving debts that are 15 years old?

Reason I ask is that I have a friend that has an in default OSAP debt from 1998 and she has not a clue as to how to deal with it other than to hide under the blankets. She attended a private school (South Western Medix) in 97-98 and achieved a medical office assistant diploma but was never able to secure employment in that field. Of worthy mention is that she's been a recipient of provincial financial support prior to and post graduation of this private school. Since 2 years ago she secured employment at a local Wal-Mart, started part time and is now full time, but still @ $11.00 per hour has her income and child care costs are supplemented by the Ontario Works program. Last year her income tax refund of $118.96 was transferred to the collection agency TCR. I did her income taxes for her this year and her refund of $2622.78 was as well transferred to TCR.

It's been 15 years since her original student loan agreement was signed and agreed to so why is it that they (the Ontario Government) are still trying to collect given what is stated in the You Tube video I mentioned above? Prior to her becoming employed by Wal-Mart Canada Corp. 2 years ago there was no collection actions taken and she received her income tax refunds as normal.

Something that boggles my mind is that I believe her student loan documents would have been signed and agreed to while the 1990 version of the Ontario Limitations act was in effect. Pretty sketchy the gov can change the rules of the game at halftime isn't it!

FYI her total debt prior to the $2622.78 tax refund transfer was between $10,000-$14,000. Ya folks, she does not even know exactly how much she owes! No phone calls, no snail mail with an account statement...nothing...just a sorry bout yer luck at tax time for the last 2 years.

I'm very irritated and upset about her situation. I mean gosh darn it is the Ontario government's bank account that far in the red that they got to pick on the working poor and their children? I know for a fact her 9 year old daughter would love some gymnastics training this summer and her 12 year old son would love to go on the end of his school year field trip to Toronto to catch a Blue Jays game and go up the elevator of the CN Tower! Had her tax return not been transferred to TCR those two kids wishes would have been a for sure thing!

There is no forgiveness based on 15 years, but the federal portion might be stats barred.  We have a subforum on that topic. 

http://canadastudentdebt.ca/forum_topics.asp?FID=90&title=collection-of-old-stats-barred-loans

Under no circumstances should you write to anyone about his loan otherwise you might 'acknowledge the debt' and lose the stats barred status...

DO NOT CALL THE NSLSC EITHER.  and the loan probably is not with them.... if it is pre-2000 it was probably taken out with a bank.

While admirable that your friend wants to clear this up, let the federal loan go... trying to pay it will unleash a mess of unreasonable harassment from a collection agency if they smell money.

CRA does collect the provincial loan but does not collect on behalf of the bank, unless the bank used its option to sell the loan back to the govt, which rarely occurred.

Paying the provincial loan  through tax returns is a simplified process. If you try to make other payment arrangements the people you pay to may not communicate with the CRA and you may end up paying more... and then trying to get the overpayment back.

ALSO If she is still using the same bank i.e. CIBC, then CHANGE BANKS!   Make sure she never opens a CIBC account otherwise they would have the right of offset.  

There is also the potential for having the loan set aside due to hardship with extenuating circumstances, if this is the case. If approved it will release liens on income tax rebates and the loan would be set aside, with or without conditions.