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 LockedWhat happens when my Consumer Proposal is up?

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daisy731 View Drop Down
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    Posted: 12/August/2009 at 12:34pm
Hi everyone,

In talking to the National Student Loan Centre and CIBC Loan Centre I was told something today that my trustees neglected to mention.

I was told by the Loan Centre that upon the completion of my proposal I will have to pay upfront the interest I've accumulated and the loan payments that I am behind before I can start regular loan payments. Which at that time will amount to between 10-15000 dollars. And if I don't have it, they will send me on to Revenue Canada who can put a lean on my income tax refund and garnish my wages.

Before beginning my proposal the trustees told me that the student loan people could not demand payment, and interest would accrue. What pisses me off about this is that the impression they gave me was that the proposal was like putting my loan on hold, the government agrees to it, but not that I would be considered in default.

My consumer proposal will finish in August of 2010. The loan officer suggested that the best thing I could do would be start making the interest payments at least to reduce the lump sum I would have to pay when the proposal is over.

Has anyone found themselves in this position? At the end of your proposal having to pay a lump sum to bring your "defaulted" student loan up to date, before regular payments can begin?

Is there anything else I can do other than start making interest payments?

Thanks!

Toni
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Madmorrigan View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Madmorrigan Quote  Post ReplyReply Direct Link To This Post Posted: 13/August/2009 at 5:58am
Toni...I believe that's pretty standard practice. I've not had a proposal, but I did go through a bankruptcy and it was exactly the same--my loan was on 'hold', so no one could demand payment (don't think they didn't try, though), and once I was discharged, all payments I made went to interest. However, I did not have to pay all the outstanding interest at once...all my payments were applied to interest first, then I was able to start chipping away at my principle.

I'm pretty sure they do this if you've been out of school for a while and then apply for another loan to go back--they make you pay any interest accrued since you last went, even if your loans are in good standing.

They make their money off the interest, so God forbid they should actually blend it or something similar that would actually be to our advantage.
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Iknowalotofstuff View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Iknowalotofstuff Quote  Post ReplyReply Direct Link To This Post Posted: 09/December/2009 at 8:05pm
What is your end of study date?  Were you out of school for 7 years when you made your proposal?

If  the date of your proposal was more than 7 years from your study end date and your certificate of full performance is after July 7, 2008, you student loans will be subject to discharge upon completion of your proposal.  

If the date of your proposal was less than 7 years from the study end date but 5 years has elapsed from the study end date when you receive your certificate of full performance, you may make an application under s, 178 1.1 of hardship relief and, if granted, would render your student loans subject to your certificate of full performance.

When posting on this site, bankrupts should always post date of bankruptcy and study end date and the date of discharge.  If you had posted that information I could have given a more definative answer.

See the forum on "Discharging a Student Loan Under a previous bankruptcy or proposal" on this site.
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administrator View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 10/December/2009 at 5:19am
Iknowalotofstuff... I am concerned that you are only focussed on bankruptcy... It is obvious from all your posts that you believe this is the only option.  I do not want this to become a pro-bankruptcy site.
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Iknowalotofstuff View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Iknowalotofstuff Quote  Post ReplyReply Direct Link To This Post Posted: 10/December/2009 at 6:37am
The BIA was amended on June 18, 1998 creating the 10 year rule.  There are so many bankrupts who were not out of school for 10 years when they filed.  Many of these bankrupts have never found gainful employment and are at the mercy of their student loan creditors.  Many of these bankrupts are contemplating a second unnecessary bankruptcy when the 10 years are up.  I want to use the BIA to minimize the impact of bankruptcy. It is not that I am pro bankruptcy.  I am against more bankruptcy for those who already filed (or made a proposal.

The more people who speak openly about ALL options .... the more informed the debtors are.  Then they can make their informed choice.
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eagle11 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote eagle11 Quote  Post ReplyReply Direct Link To This Post Posted: 22/March/2010 at 4:42pm
I can tell you from experience that I am in the same situation as you are, my trustee also told me my student loan was on "hold" and I later found out that CSLC added all that interest when I was done expecting me to pay over $15,000 up front two years after I left school, UNBELIEVEABLE ! 
I decided to go back to private college that I decided to  pay out of my own pocket instead of relying on OSAP , and  a year later the student loan people want a bunch of money, when I am only getting entry level positions that hardly pay what the CSLC demands in thousands of upfront money.I am further infuriated because the Canada Student Loan Centre took over $2,000.00 of my tax refund without notifying me or warning me at all! as I kept them updated that I have been unemployed for several months this year when they called asking for these large sum payments, this government truly disgusts me, I can't say how many times I have tried to work with them to make payments, how many numbers, agencies I've called just to see that they are bullying me into making thousands of dollars or else demands, is just ridiculous and unrealistic for someone starting out in their career and not to mention the fragile economy.
This government is truly  designed for the Rich Capitalists and it makes me so sick.
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