new debt reduction guidelines for income?

moonlight

if alliance one has your loan then you are in default.  peroid.  be careful about hoping your provincial loan is about to be stats barred - i think johnny posted something about not all provinces use the same timetable for this - check his postings.

from what i've been told (by my bank) once you default you can't apply for debt reduction.  i think if you can pay the arrears they can reinstate your loan and then you can apply but you would have to ask your lender about this - they may require you to make payments for 6 months to show the account is in good standing before considering a debt reducion app.  and then they kind of look at you with the  - what, you've been making your payments why do you need debt reduction ? attitude.

if you can afford it, keep sending those mo's for 25 bucks.  it shows you are trying.  remember, banko costs $$ and unless you have other consumer debts is not really worth it for sl's alone.

if you are commonlaw his income is considered when applying for debt relief.  this sucks the big one, i know since its your debt and not his, however, that is how the system works at present.  remember, they can verify the numbers through ccra and if they find out you told a fib, well, they don't play nice.

good luck and keep us posted.

moonlight

the best way to dig up info is either ask a question here or spend lots of time playing with google.

how's this for a kick in the pants - they changed some of the osap debt reduction procedures and i could qualify if my loan wasn't in default .

they like to keep us in the dark - that way their buddies at the banks and the collection agencies can wring every penny from our hides and they can tax whatever is left.  they are counting on some of us to default because they allow too many people to study for those promised jobs that do not exist.

if you are really having a hard time i recommend talking to johnny.  if he can help its way more affordable than bankruptcy and the man knows his stuff - check the postings under recommended advocates and counsellors and the info on the main page.

good luck and keep us posted

wish i could offer more help

moonlight

i didnt qualify based on my husbands salary(34K).  i have two small kids and do not work. (kind of unfair expecting him to pay for my debt without considering our expenses or family size but hey its government policy we are dealing with here so...). 

if my loan was current i could apply to have my OSL reduced but i can't afford the payments required to get it current so its a moot point right now.  i am writing a letter to OSAP and the government to plead my case and see if they can process my app retroactive and roll the interest into my loan but i am not holding my breath on this one.  my loans are guaranteed by the government so the bank has no inscentive to work with me - they get paid when i default so...

when all is said and done i am still unemployed and unable to work and therefore unable to make any payments.  my hubby can't afford to pay it - between the mortgage and the vehicle and the other bills we are stretched to the hilt.  i am trying to get my medical problems straightened out and possibly recognized by the government as being disabled ( severe fibromyalgia making it difficult to type, hold a toothbrush, drive, anything requiring hands as i also suffer from carpal tunnel and chronic fatigue ).  my hope is to have my loans forgiven altogether in the future.

you will have to answer questions at the credit union.  alternately you could call the CSLP number and ask them, they would likely require some info from you as well.  you are working so they could get the info through ccra regardless.  dealing with the bank is ok, just dont give the collection agency any info.

the bank may require you to pay the owing interest or the outstanding balance to make your loan current.  DOING THIS DOES NOT MEAN THEY WILL ALLOW YOU TO APPLY FOR DEBT REDUCTION.  the bank has the ability to be nice or to screw you over here.  this is why you need to talk to them first - give them a hypothetical, tell them you heard it might be possible to have your loan reinstated and subsequently apply for forgiveness after establishing a positive history of repayment - they should be able to provide you with details. ask them what the income levels for debt reduction are - and if you would qualify once your loan is brought current.  it all depends how bad the bank wants your money.  keep in mind the default will likely stay on your credit history regardless, so no matter how many knots you tie yorself in your credit will still be shot.

check www.aved.gov.bc.ca/studentservices/student/finish/default.ht m they may be able to explain it better than i.  when in doubt call your bank.  and if possible record the conversation and request the info in writing before you agree to anything.

your payments would likely be altered to reflect your wages - ie reduced to 475. making 38K i doubt you would qualify for debt reduction - you probably would have at 30K though.  congrats on the new job !!

hope that helps.  keep us posted and good luck

moonlight

long story short - the bank screwed me over by counting my cctb money as income, which they are not supposed to do when considering debt reduction.  this put me over the income threshold for my loan forgiveness.  had i known then what i know now i would have made a big stink.  i dont know if i have the energy to go another round with the bank over this after all the missing forms and screwed up interest relief applications and everything else...

my ontario student loan (OSL) has adopted new guidelines for debt reduction as of the end of october which DOES consider the CSL portion as well as my family size.  however, as i am curently in default i am unable to apply.  i am still going to try and get a retroactive application though.  which reminds me i should call the vampires at scotiabank and ask about getting an application faxed to me for this or maybe i can get one online dierct from OSAP...if i can get my OSL reduced i can try and make the payments after the new year. 

my hubby wants me to tell them all to get bent, i am in no shape to deal with any of it mentally ( chronic depression, chronic fatigue, carpal tunnel, fibromyalgia, obsessive compulsive...i sound like a walking disaster) and physically i cant get a job and am not yet on disability ( fighting with the docs and the government - sound like fun ?).  i also have two small children to look after as well with no daycare in my area.

from what i have read, the default will remain on your record for six years even if you manage to get the loan reinstated.  I MAY BE WRONG ON THIS POINT, HOWEVER, so do some research on your own to try and verify this.  i am trying to dig up the info but cant spend much time typing at one sitting.  i think you can request information that the loan is presently current and in repayment be added to your credit report after 6 months of payments BUT the default will remain and follow you around like toilet paper stuck to the bottom of your shoe.  encouraging, no ?    i hope i am mistaken and someone please feel free to prove me wrong on this one.

do your homework and talk to your bank or the people at CSLP.  make a list of questions you want to ask and make sure to request they send you the info in writing to verify that they will (or will not) reinstate your loan and/or allow you to apply for debt reduction and on what terms.  write down names of people you talk to and keep a record of it for later - so if there are problems later you can say so and so said this when i spoke to her on this date.  always always always cover your rear.  ask about getting the default removed from your credit report.  ask about income levels for debt reduction.  once you have your answers make an informed decision.

and keep us posted.  i wish you luck.

moonlight

i hear bali is nice...

at least you were able to get some answers.  someone will call eventually trying to collect the 13K unsecured portion of your loan.

if johnny can help you and you can afford it, get him involved.  if you have loans prior to 95 there may be statute issues.  also he knows more about the guaranteed /unsecured  loans, how they work and how to deal with it.  he is the expert when it comes to this stuff, i'm just a rookie.

good luck.  but if john gets involved you won't need luck.