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 LockedConsumer Proposal and Student Loans
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HamishG4 View Drop Down
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Joined: 25/November/2004
Location: Canada
Points: 13 		Post Options Post Options   Thanks (0) Thanks(0)   Quote HamishG4 Quote  Post ReplyReply Direct Link To This Post Topic: Consumer Proposal and Student Loans
    Posted: 25/November/2004 at 7:13pm
Last year I filed a consumer proposal after Metropolitan Credit Adjusters
informed me that they were going to push me into bankruptcy. While I
am in the consumer proposal, I do not make any payments on my loans,
and they remain interest free during that period (until September 2006 in
my case).

I was wondering what happens when the proposal ends. Does the loan
go back to CIBC, and I start a normal repayment schedule of 14.5 years?
Or does the loan go elsewhere, that is, to a collection agency or agencies?
I would rather it did not go back to the evil MCA--or the more evil CIBC
for that matter.

I am glad to see that I was not the only person to be affected by the
failure of CIBC. Are they the worst bank? If only I knew then my rights
vis-a-vis collection acgencies and student loans.
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momof2 View Drop Down
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Joined: 15/August/2004
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Points: 792 		Post Options Post Options   Thanks (0) Thanks(0)   Quote momof2 Quote  Post ReplyReply Direct Link To This Post Posted: 26/November/2004 at 3:22am
i am pretty sure once the proposal is over your loan will be in the hands of MCA or some other collection agency.  i hope i am wrong, but johnny knows more about this stuff than i do.
professionals built the titanic but amateurs built the ark...
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polyhymnia61 View Drop Down
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Points: 915 		Post Options Post Options   Thanks (0) Thanks(0)   Quote polyhymnia61 Quote  Post ReplyReply Direct Link To This Post Posted: 26/November/2004 at 5:08am

I'm confused about your consumer proposal, Hamish...which, btw, is considered a somewhat of a "bankruptcy junior" under the bankruptcy act, and by creditors...How can your student loans not be included?

When I did my consumer proposal with BDO Dunwoody, I just wanted by student loans included, but I was told that my Royal Bank Visa, which was in good standing, had to be included...in other words, ALL debts. Lost my credit card in the process...

Poly
Home is where you are allowed to prosper.
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HamishG4 View Drop Down
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Joined: 25/November/2004
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Points: 13 		Post Options Post Options   Thanks (0) Thanks(0)   Quote HamishG4 Quote  Post ReplyReply Direct Link To This Post Posted: 26/November/2004 at 1:15pm
Poly, do you mean that when your consumer proposal was finished, you
did not have to keep paying your student loans? I was told that the credit
card debt was satisfied by the proposal; the student loans would have to
be paid less their share of my proposal payments to BDO. That is, I
would have to commence payments to CIBC in October 2006, after my
consumer proposal was finished.

Poly, how long has it been since you started your consumer proposal?
How have you found it trying to rebuild your credit?
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administrator View Drop Down
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Joined: 25/January/2003
Points: 1798 		Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 26/November/2004 at 7:57pm
Depending when you file your proposal, different rules apply. Interest will still accumulate on the student loans... there is no interest free period that I am aware of, unless you qualify for interest relief.

The consumer proposal is under the bankruptcy laws... you will not be discharged of your student loans... If you are thinking of filing a proposal, I suggest you wait until the CFS court challenge result comes out which could be any day now.... it might have an impact...

Mark
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polyhymnia61 View Drop Down
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Points: 915 		Post Options Post Options   Thanks (0) Thanks(0)   Quote polyhymnia61 Quote  Post ReplyReply Direct Link To This Post Posted: 26/November/2004 at 11:24pm

Oh, okay. I misunderstood you. No, yours was the same as mine.

I arranged my consumer proposal in October of 2002. Just my student loans and one Visa. I was to make payments for three years.

I was in a bit of a panic at the time; this forum did not exist as of yet, that I knew of, so I didn't have the benefit of any knowledge from people like Johnny or other members who have been through the same crap I had --- lost interest relief forms, apathetic and incompetent staff at the CIBC and NSLC, and harassing phone calls from three different collection agencies. When a credit counsellor told me (in error) that I could declare bankruptcy on the loans I took out 10 years ago, I called BDO Dunwoody who told me "no," but I could do a consumer proposal for three years...and then do another for three years...and so on until my 10 years were up.

I shudder to think of it now -- they actually recommended, for all intents and purposes -- that I declare bankruptcy THREE TIMES in 10 years!!!!!

Anyways, I eagerly signed on and the skies cleared...temporarily. I paid $400 a month...until I was laid off due to a lack of work in January 2004.

With a proposal, if you miss three payments, you default, and you are thrown to the wolves again. Unfortunately, the creditors, who must approved the proposal, will not be eager to agree with a revision of terms that would lower your payments or lengthen your amortization if you have no job. I was stuck. BIG time.

I threw whatever I could from my EI cheque to BDO to keep the proposal running...but, being the only one in my town that did my job, I had to somehow find a new line of work, without returning to school, or leave town without money to find a job. I'm in my 40s...my son was 17, I was living with my mother to help afford this damned proposal -- it was running my life.

And my boyfriend wanted me to move in with him once my son headed for college. However, he lives in Holland.

What to do? Consumer proposals, I found out through all this, are just "bankruptcy junior"...your credit rating is shot, your student loans are not forgiven...and if your lifestyle changes at ALL, you are screwed. Can anyone here REALLY predict where they will be in three years? Is anything that secure? I thought I was...and I was wrong.

To make a long story...erhm...not as long...I defaulted. I had no choice. It was running my life. Johnny has helped me through this, so I have no idea what would happen if one finishes one or defaults with no net, so to speak.

And I'm not working yet, so credit? What credit?

If I knew then what I know now, I wouldn't have done it. I put myself in financial straits to pay the damn thing (I gave up my apartment to keep up the payments, I was so desparate!! Try living with your mother at my age!!) and did not have an impartial POV to help me with alternatives. I thought I had none.

Wish I could help...I probably freaked you out, didn't I? Sorry...

Poly
Home is where you are allowed to prosper.
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