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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oh_sap View Drop Down
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    Posted: 20/June/2007 at 10:11am
I posted a similar question some time ago but I don't believe it was ever resolved.

Currently, debts which are owed to the Federal Government are governed by a statute of limitations of six years. In Ontario, this was also the case with debts owed to the Provincial Government. However, in 2002, the Provincial Act was changed to remove the statute of limitations as applied to Student Loans/Debts. This meant that regardless of how long ago your debt was incurred to the province, it would still be active. The important question which I couldn't receive clarification was whether this change to the Act was retroactive -- meaning would it apply to student loans which were defaulted prior to the changes to the Act in 2002 or if it only applied to defaultments after implementation of the Act, 2002 onwards.

Any further information on this topic would be appreciated.
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Points: 5996 		Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 20/June/2007 at 11:28am
Well, loans that have surpassed limitation time before the coming into force of this ammendment would still be statute barred. There are a lot of interpretations floating out and about.
 
From what I have been told, limitations are applicable towards loans that have become due on or before 1998 (thereabouts).
 
Common sense would show that when an act is ammended (in this case - the Ontario limitation of actions), the coming into force of that ammendment would apply to Ontario loans that have not reached the limitation period upon it's coming into force.
 
Best thing to do is hire a lawyer in Ontario to make an interpretation for you.
 
Johnny
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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Yes, those are the same interpretations which I have come across too.

I my case, I defaulted on a student loan in 1991. Fast forward to 2007 and I have a collection agency coming after me for this same student loan -- 16 years after the fact. But I am in no way agreeing that this collection agency understands the Act or even basic law as we know how they operate.

I will have to have a better read through the Act to finally clear this up. I imagine a great many other people are in this same situation or they have even handed over money to these collection agencies without being obligated to do so.

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Johnny;  Can you clarify this please?  You posted this on your website...
"There are limitations with respect to Ontario student loans that have defaulted before the coming into force of the new ammendment to the Ontario Limitations Act (2002). Loans that have been opened or defaulted after the coming into force of the new ammendment, there are no limitations that bar the province of Ontario from taking action or proceedings to recover money owed. "
And then I read what you wrote above...I'm confused.  If you defaulted prior to the new amendment but your 6 years hadn't expired yet, where do you sit?  And did the new amendment begin to apply in 1998 or 2002?
Perhaps I'm reading all of this wrong.  But its mighty confusing.
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Confusing it is. I have been told that ther eis a point where a loan carries a limitation, and it is around the 1997-1998 era. This is just what someone had mentioned to me.
 
Now, it is very hard to believe that once a loan is barred, it could be brought back at a later date. THe last I heard, Jesus was the only one on earth capable of demonstrating a ressurection.
 
Johnny  
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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Originally posted by devilchild devilchild wrote:

If you defaulted prior to the new amendment but your 6 years hadn't expired yet, where do you sit?  And did the new amendment begin to apply in 1998 or 2002?
Perhaps I'm reading all of this wrong.  But its mighty confusing.


In Ontario, the Limitations Act of 2002 came into effect January 1st, 2004.  Under Section 16, the limitation periods on student loans and grants were removed i.e. no limitation periods.  Under Section 24, Transitions, it states that if the old limitation period had not yet expired, then the new limitation period takes precedence.  If the old limitation period had already expired before the new Act took effect, then the old period takes precedence.

What this means for something that used to have a six year limitation period, is that if a claim on a loan or grant was dated before January 1st, 1998 (six years before Jan. 1st, 2004), the loan or grant is statute barred, or should be, but if the claim is dated after Jan. 1, 1998, there is no limitation period on the claim and the gov't may pursue it.

Does this clear things up a bit?
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That is  how it was expained to me by two groups in Ontario.
 
 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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I have defaulted loans, end of study date 1997, and NCO tells me on the phone they are still collectable.  CRA told me the lien on my refunds for them are still there, they will get it. Shouldn't the old limitation period apply?
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depends on when your loan became due.
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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End of study date 05 97.  Document sent out end of 97 says Interest commences 1st day of Dec 97, Payment date 01 01 98.
 
S 24 of the Limitation act refers
 
"Former limitation period unexpired

      (4)  If the former limitation period did not expire before the effective date and if no limitation period under this Act would apply were the claim based on an act or omission that took place on or after the effective date, there is no limitation period.  2002, c. 24, Sched. B, s. 24 (4).

Ithe question is, did the former one expire? here is a chart that mite help http://www.practicepro.ca/practice/pdf/TransitionRulesChart.pdf
I don't know, I need a freakin lawyer to sort this out.
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Does the 2002 act only apply to Provincial student loans from Ontario? 
 
The government took over 6 years to contact me on my student loan (I went bankrupt in 2001).  I live in Alberta ... so would that mean that the statue of limitations still apply?
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Hi, Im new here. I defaulted on a loan in 1996. Made a few payments that year , as a single parent with 4 children made it hard to do.
I moved to the stated for 7 years and came back 2 years ago,,,my first income tax this year they swiped all my refund for this loan from 96-7
they never contacted me at all all these years,,,notta none
so now i make under 1 thousa a month and the dam collector says to make 2oo dollar payments,,,

my student loan for two year course went from 3000 to 9000 withing that time

im looking at the limitations also,,,,aside from contacting my mpp,,,im so depressed,,,looks like they can just play with you whenever they want to
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I'm wondering about this also... My school went bankrupt in 1998 and then I reapplied to another college... but dropped out in 99, Loan was refunded... I declaired personal bankruptcy in 2000 and discharged in 01.  in 2004 I began getting calls for the original loan that I applied for but didn't receive because of the school going bankrupt.  2 years ago they told me that they are going to take my taxes so I refuse to file my taxes for 2 years now hoping that they will take me to court so that I can fight the fact that I don't owe/never received the first loan.  Any limitations here?
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Some more info on the stat of limitaions would be helpful please.  My studies were to end 05/99 when does the stature start? Repayment was suppost to start September 30, 1999. do I fall under the stat limit? if so I would like to know so I can Call Accounts Recovery Corp on thier bluff and take this to court...
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Also can someone clairfy if this applies to goverment loand and bank loan.. for students
what i mean about these is
from my understanding....is the goverment (garenty loan) doesn ot fall under the linitation
however the risk portion (bank) does..
is thsi true??
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Stats only applies to the (risk) portion of the loan... from what I can tell through experience.. even though the Guaranteed portin (MTCU) files a claim with bankruptcy or waits 30 years... legislation says that they can take any government monies (GST/HST income tax. etc) to recover monies owed.
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Limitations apply to pretty much all loans. However, certain loan providers are not bound by the limitations, such as the province of ontario. All risk loans are subject to limitations. If a debt is barred, no action or proccedings can be taken to recover the money owed.

Johnny
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solvestudentdebt.com
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how does one find out if it has been barred?

I paid the goverment loan off several years ago. Is the risk portion that

is over 8 years old within the limitation.? when does the time stamp start..

I paid off the goverment loan in 2005, have not herd from the bank on thier part until now, since 2000 - 2001.
 
does the time start back in 2001 or 2005.
 
also just to let you know.. i thought the loan i paid off in 2005 was the whole loan.
the collection people say it was not.
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then how can ARC collections put a lien on my income tax and GST on behalf of the MTCU 10 years after?
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I just told you, Meengin. The Ontario government is not bound by any limitations with respect to Ontario student loans. MTCU is the Ministry of Training Colleges & Universities, in other words - the Province of Ontario. They can take your income tax and/or GST rebates through the federal set-off program until the debnt is paid. Not being bound by any limitations means thay can do whatever they want (as longas it is within the limitation of the law) to recover money owed to the Province.

Phreak - if you want to know if your debt is statute barred, you are better off seeking professional help. This is not something that can be determined without a lot of digging and investigating. Call me if you want the help - or see if you can find someone who will do it for free. For God's sake, please make sure that whoever it is knows what the heck they are doing. There are a lot of landmines that are laying under your feet while trudging through this particular area.
 
Johnny
 
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