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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613 View Drop Down
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    Posted: 24/February/2012 at 6:07pm
Hi All - Great forum here!

My wife has a 10 year old outstanding school loan with HRDC. She just got a letter stating:

 "HRDC has authorized the CRA to recover certain debts from any income tax refund or tax credit that you may be entitled to receive"

We have been making regular small payments.

 The big question is, if we file our taxes together , will we lose the entire refund?

Can we file separatley to avoid this?

Is there a way around this?

Thanks.




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footloose View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote footloose Quote  Post ReplyReply Direct Link To This Post Posted: 27/February/2012 at 3:03am
In Canada, you can only file a separate income tax return.
 
In the United States, you have the option of filing a JOINT income tax return.
Educating one Consumer at a time
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blackcat View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote blackcat Quote  Post ReplyReply Direct Link To This Post Posted: 28/February/2012 at 1:10pm
They never took my husband's return when taking mine. My debt was from before I was married, not sure if that has anything to do with it. He had no responsibility for it.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 29/February/2012 at 3:48am

Your spouse is not legally responsible to pay your student loan unless he has endorsed it. However, If you owe a guaranteed Canada student loan, and it is in default, and you qualify for an income tax rebate, the government will in most cases confiscate it and apply it to your outstanding student loan. Any seized money is applied to the interest in arrears first and then towards principle. THat is how it works.

If you have any provincial guaranteed student loans then the same process applies whereas the federal government is required to release a portion of income tax money to them as well.
 
If you have outst6anding bank risk student loans, they have no power whatsoever to seize or demand any money due and payable toy ou by the Crown.
 
So however you file, if there is an amount due and payable to you the only way to retain it is to demonstrate hardship with extenuating circumstances or a limitation issue.
 
Johnny
 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
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613 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote 613 Quote  Post ReplyReply Direct Link To This Post Posted: 29/February/2012 at 3:51am
Thanks. The loan is from 12 years ago. I have called HRDC to try and reduce the interest from 5% and they won't budge. I tried to see if they could reduce the amount - no way. Is there anyway to catch some kind of break on the $9000 we owe??
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Post Options Post Options   Thanks (0) Thanks(0)   Quote mr.o Quote  Post ReplyReply Direct Link To This Post Posted: 29/February/2012 at 6:45am
Limitation issue...as in statute of limitations? Is this where you come in and would you have to deal with it only once, or every year? Thanks in advance...
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 29/February/2012 at 6:53am
If you just "ask" them then they are prorammed to say "no". You have to provide a demonstration that will give them a reason to reduce it. If they determine that you are able to pay and are not experiencing hardship then they definitely will not budge. They do settle under certain circumstances but those cricumstances have to be a convincing argument that gives a reason to do so.
 
The government is hard to sell hardship to buit if you got it then they have to hear it if you insist that they acknowledge it and appeal for fairness and benefits of that nature.
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 29/February/2012 at 7:00am
Mr. O - with Federal limitation issues it is a one time issue. Limitation issues pertaining to private student loans (bank risk) and general consumer-related credit/debt matters depend on the case. Some banks and their creditor's rights activists in law like to play super stupid and politically incorrect so it is a longer term intervention for some.  Privaste banks and businesses often think they are "above" the law and can do whatever they want and that presents some complexity, but in the end they are defeated by their own stupidity. LOL
 
Johnny
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
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Post Options Post Options   Thanks (0) Thanks(0)   Quote EWF004 Quote  Post ReplyReply Direct Link To This Post Posted: 15/August/2012 at 10:48pm
Hi all

Not too clear on the final outcome of the above, but I would like to ask if there is anyone out there who has had a settlement with the HRDC? I am wondering if they would reduce my outstanding loan amount in hope that I can settle my student loan once and for all? Is there a way to negotiate? are they flexible?

I am currently unemployed and have 2 children so the mean to repay the loan little but I have a one time limited amount offer from a friend to pay off the loan.

Anyone who can help with their own experiences would be a blessing!
thanks all :)
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 17/August/2012 at 6:34am
I do this work for people. Yes, it is possible but there has to be a reason for the government to agree. There has to be a hardship involved in it. If you are gainfully employed and thinking about making an offer just for the purpose of saving a buck then they will reject you.
 
Are they flexible? They are very stiff, just put it that way.
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
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