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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sooooindebt View Drop Down
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Points: 3 		Post Options Post Options   Thanks (0) Thanks(0)   Quote sooooindebt Quote  Post ReplyReply Direct Link To This Post Topic: BAnkruptcy as Full Time Student
    Posted: 05/August/2010 at 4:14pm
So, I owe BMO $12000 and CCRA $25000 for student loans + another $15,000 in taxes. I paid $10,000 off my student loans to bring it down to $25,000 in just a year and a half (when I had a really good job). I've been unemployed and haven't paid anything in over a year. I recently got into Law School and asked BMO for a professional student loan and they denied me (with a perfect co-signor). I have jumped through hoops trying to get a loan and finally someone in my family stepped up to the plate and secured a loan in their name. Believe me, I am nervous and very uncomfortable with this but also grateful. If I wanted to be an *sshole, could I go bankrupt? My fees are being paid by a sponsor so no money is touching my bank account. I'm not interested in any judgemental responses as to whether this is a noble thing to do. I don't think I would even do it because of the complications but I am interested in the laws regarding this. I guess in short, does my returning to full-time studies in the fall exclude me from being eligible to go bankrupt? Assume, I am a perfect bankruptcy candidate otherwise. Thanks!
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paulaffleck View Drop Down
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Points: 156 		Post Options Post Options   Thanks (0) Thanks(0)   Quote paulaffleck Quote  Post ReplyReply Direct Link To This Post Posted: 06/August/2010 at 12:01am
Of course, whether to pursue, or not pursue, bankruptcy is your choice.

Be careful to read the statutes, regulations, and internal rules that governing the law societies in the provinces where you anticipate practicing upon your call to the Bar.  There may exist obligations to disclose to the law society of that province, or provinces, past bankruptcies, and the reasons for them, before a candidate for Call to the Bar, is indeed called.

Law Societies typically want to ensure that their members can, and will, meet their financial obligations.  If a current member of the bar pursues bankruptcy, that member typically has to disclose the bankruptcy to the law society.

I'm not trying to be a blowhard.  I'm just suggesting doing some looking into it.
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Points: 1798 		Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 06/August/2010 at 1:56pm
Your student loans can not be discharged until 7 years after you leave school or 5 years if you can show exceptional hardship - but even at that the govt may oppose the discharge.

Some of the posts here have reported that some cases have held that going back to school again would not reset the clock if no new loans were taken out.   On the other hand, while these cases are on the books, they may still come after you for the loans...

If you declare bankruptcy the person who co-signed the loan will be responsible for it.  It wont be included in the bankruptcy.  You need to consider the long term family relationship consequences.

Is there any way you could get employment and bring your loans up to date? That would obviously be the best option.  Perhaps delaying school a year and working might be a really good option.
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Mark OMeara
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https://LaughSingWrite.com - http://bit.ly/heal2024
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sooooindebt View Drop Down
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Points: 3 		Post Options Post Options   Thanks (0) Thanks(0)   Quote sooooindebt Quote  Post ReplyReply Direct Link To This Post Posted: 06/August/2010 at 2:41pm
Thanks everyone! FYI, I'm not going bankrupt. 

I believe the law society would have problems with someone having declared bankruptcy and overseeing a trust account. Also, for some reason or other I have heard it can complicate or even disqualify one from holding a justice of the peace position. 

Mark, I never got a co-signor for my loan as BMO denied me of pursuing that route. I don't think my bankruptcy would implicate my family member. I think it would be better to go to school and be out in 3 years with an LLB and in more debt than to enter the job market with my B.A in Poli Sci in this economy. While my debt gives me anxiety, I also feel it isn't the result of gluttonous consumerism. I'm a little bitter with it however. I resent having to chip away at it with a $32,000/year job in my field or even worse, a $45,000 year job painting in Calgary away from my family. The whole thing doesn't seem worth it. A doctor's student debt is worth it whereas a B.A. has become the minimum standard. With one third of OSAP borrowers defaulting it seems the government isn't keeping their end of the deal with ensuring decent jobs. 

The people most likely to default are apparently females and not males buying cars (as the director of OSAP made the mistake of actually saying in a parliament). They're getting B.A.s and ending up working Pink-Collar Jobs. I feel for these people. I wouldn't do it. I'd go bankrupt. Some probably feel I'm selfish or a whiner or perhaps feel I should swallow some pride but I've always had a more romantic view of my life. You only live once. I'd never live just to pay the government for a debt they encouraged me to take. I'm all about taxes (in exchange for social programs) and will be glad to pay mine when I can. But what is this prime plus stuff? What is this interest? Are they actually making money off my loan? Are they seriously making more and more money the longer we take to pay?  
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sooooindebt View Drop Down
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Points: 3 		Post Options Post Options   Thanks (0) Thanks(0)   Quote sooooindebt Quote  Post ReplyReply Direct Link To This Post Posted: 06/August/2010 at 5:20pm
Not sure how to edit my post. *Correction* The last line should read:

Are they seriously making more and more money the longer we are unable to pay?
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