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 LockedCRA and interest

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tkarmy View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote tkarmy Quote  Post ReplyReply Direct Link To This Post Topic: CRA and interest
    Posted: 09/August/2012 at 4:40am
Anyone know what % of interest CRA charges once they get a hold of your loans? Trying to decide if it is worth while to pay them off with my line of credit and get my payments reduced
 
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: 10/August/2012 at 11:50am
The Canada Revenue Agency ( CRA ) is the official collection agency for the Federal government.  And like all collection agencies, the rate of interest charged is the rate stated in the original agreement.   When you signed your student loan agreement, it will clearly state the base rate ( sometimes referred to as the "Bank Rate" ) plus an additional percentage.  For example, today the "Bank Rate" is 3%.  And to that rate is added another rate such as 5% bringing the total rate to 8%.  This is referred to as a "Variable Rate" loan.  It is called a "Variable Rate" loan because if the Bank of Canada increases the "Prime Rate" currently at 1%, then the banks will raise their "Bank Rate" and consequently, your total rate will also increase.   On the other hand, you may have signed a student loan agreement that provides for a "Fixed Rate".  That means that if the Bank of Canada raises its " Prime Rate", your rate will remain constant and will not be affected.   Check your student loan agreement and there you will find the rate of interest that is being charged on your loan.  If your student loan is a "Variable Rate" loan, check to see what the "Bank Rate" is as stated in the agreement.  If the rate is other than 3%, supplement the rate stated to 3% and then add the additional rate.
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tkarmy View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote tkarmy Quote  Post ReplyReply Direct Link To This Post Posted: 13/August/2012 at 4:52am
Cheers thanks for your help.
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SolveStudentDebt View Drop Down
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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 6:47am
Consult with me before you tap out your tdsr on this. I have some ideas and good cost benefit for you.
 
Email Heather and she will set us up something if you want.
 
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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