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 LockedBanks can change interest rate on LOCs??

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joeTaco View Drop Down
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    Posted: 20/March/2012 at 3:44pm

Hi, this is not an urgent question (sorry) but this seemed like the most appropriate forum to post in.

I thought I read the fine print well enough, but it wasn't a very large loan (this year) so I guess I didn't do the best job.  I just noticed a paragraph in my RBC Student Line of Credit agreement that I hadn't noticed before:

Quote You agree that, once you are no longer a student ... we may change the interest rate that we charge you on all unpaid amounts, but in no event will the new interest rate exceed our Prime Rate plus five percent per year.  You also agree that even after we have changed the interest rate, we may increase or decrease your interest rate whenever we choose.

So it looks like the banks can change my rate above and beyond changes in the prime rate.  This comes as a surprise to me - I know prime always changes, but I didn't know the banks could put me up to prime+5 (right now I'm prime+1) just because they feel like it.

Two questions:

1.  Do banks actually exercise this option very often, or is it a rare thing?

2.  Is this language common across different banks / types of loans?

Thanks!

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