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.


  New Posts New Posts RSS Feed - Bankruptcy/student loans while FT student
  FAQ FAQ  Forum Search   Register Register  Login Login


Forum LockedBankruptcy/student loans while FT student
 Post Reply Post Reply
Author
  Topic Search Topic Search  Topic Options Topic Options
Kat05 View Drop Down
Newbie
Newbie
Avatar

Joined: 05/January/2005
Location: Canada
Points: 1 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Kat05 Quote  Post ReplyReply Direct Link To This Post Topic: Bankruptcy/student loans while FT student
    Posted: 05/January/2005 at 3:26pm

First, I'd like to say that I'm glad I found this website :-) I am in a bit of financial trouble - surprise, surprise  - and while I have tried to do some research, I'm getting conflicting information.

Here is a little about my situation:  I am a graduate student in my 2nd year of my doctorate program.  I will be a full-time student for 2.5 to 3.5 years.  My financial trouble started with a car purchase (used), and has become even worse since I started leasing a vehicle.  Basically, the car and associated expenses cost me more than my rent and when I didn't get funding for this school year, it really messed me up.  So here is a breakdown of my debts:

$8000 Student Line of Credit

around $5000 to Revenue Canada (I worked numerous jobs last year and NOT one took off taxes; since I only realized this halfway through 2004, I am predicting that $5000 will be the total debt for 2003 and 2004)

$2000 personal loan due to relative

$9000 is still due to the leasing company for my car (+$5000 residual).  I have 2 years left on a lease for a Chevy Cavalier 2003.  I pay $390 per month b/c I got 30,000 extra km b/c I had to go back and forth from Toronto to Kitchener during my practicum.

I realize that if I got rid of the vehicle, it would be really helpful.  I've already been lectured to death about my mistake, so I already know leasing the car was a bad idea.  However, I don't think anybody will want to lease a 2003 Cavalier for $390!!!  It is a rip off :-(  So, I'm thinking of surrendering the car and claiming bankruptcy, because I don't have the money for my line of credit or CCRA either.  I know that things could be a lot worse but I can no longer focus on my school work and I'm too mentally exhausted to get another job.

However, I also have student loans from 1997-2001 (approx. 26,000) and then after 2001 (approx. 14,000).  Canada Student Loans Service Centre said that as long as I am a FT student, my loans will remain in non-repayment status and that I won't have to pay until I graduate (which will be 2007 or 2008).

In contrast, CIBC reps told me that going bankrupt will send my loans into default and that they'll be surrendered to the govt and that I'll have to start paying.  Who's right?  Don't both CIBC and CSLSC fall under the same regulations???

Am I just going to mess myself up even more by claiming bankruptcy?  Is there anyone reputable in Kitchener-Waterloo that I can speak to?? Or Toronto??

Help! 

Thank you for listening,

New member Kat

 
Kat
Back to Top
Sponsored Links


Back to Top
momof2 View Drop Down
Member
Member
Avatar

Joined: 15/August/2004
Location: Canada
Points: 792 		Post Options Post Options   Thanks (0) Thanks(0)   Quote momof2 Quote  Post ReplyReply Direct Link To This Post Posted: 05/January/2005 at 3:45pm

kat - first things first- take a deep breath and relax.  its not as bad as you think, and there are things you can do. 

if you surrender the car you will be on the hook for the remaining balance on your current pay out ( we leased an 04 venture and are desperately trying to unload it - too expensive).  try and get your dealer to find someone to purchase the vehicle for you - people are always looking for a newer vehicle without the brand new price tag. 

you can also try and find someone to assume your lease via auto trader and the like, but don't hold your breath.  if you can, try and keep your mileage low so any equity you do have in the vehicle will be to your benefit in the event of a buyer.

bankruptcy will screw you big time and your student loans will NOT be included.  this will screw your credit rating for years to come, and is not something anyone on this site will suggest you jump into blindly - its not a solution for everyone, and should be a last resort in any case.  while your debt load seems high, the good news is your loans are current and not in default, and your payments are all up to date.

first things first - take a look at your income tax stuff.  if you have all your forms and such fill it out and see how bad it really is.  don't forget you can claim tuition costs etc.  if you do owe, you can probably work out a payment schedule with revenue canada on a per month basis.

ask your relative to give you some time before you start repayment.  another option would be to ask them to float you whatever you owe in taxes and make one payment to one person - easier for you to deal with.

once you graduate you can always apply for interest relief if you are unable to make your payments etc.  this can go on for 54 months, after which there are other options available if you are sitll having difficulty paying your student loans.

as for the line of credit, you may want to speak to your lender about your financial situation and see if there is anything they can do to lower your monthly payment, even on a temporary basis.

if you deal with things one at a time, they won't seem quite so overwhelming. we are all here to help.
professionals built the titanic but amateurs built the ark...
Back to Top
 Post Reply Post Reply

Forum Jump Forum Permissions View Drop Down

Forum Software by Web Wiz Forums® version 12.07
Copyright ©2001-2024 Web Wiz Ltd.