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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IsCollegeWorthIt View Drop Down
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    Posted: 29/August/2012 at 8:17am
I recently filed a consumer propoal.  It has been almost 10 years since graduating from college and the decision to do so was a combination of things but mainly my student loan debt.  I have been making monthly payments for 9 years on my student loans and yet have somehow only paid off about $7,000 from the principal of $82,000.  I have been recieving phone calls at all hours of the day and letters in the mail weekly so I thought I would call and give the NSLC my estate number. 
 
I was immediately routed to Tricura Canada where the person on the other end of the phone stated that my student loans could not be included in my proposal no matter how long I have been out of school because it was government debt.  Everything I have read states 7 years.  I have to have ceased to be a student for 7 years, I have well surpassed that time frame.  Is this just a scare tactic by an uneducated person? 
 
I'm freaking out more then just a little about this...does anyone else have experience with this?
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Points: 1798 		Post Options Post Options   Thanks (1) Thanks(1)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 30/August/2012 at 3:27pm
You are absolutely right on one part.   It is a scare tactic, but not by an uneducated person. It is being done by a manipulative person who realizes that if you cant pay this loan, then Tricura will not collect their commission.  So, Tricura is lying to you.  It can be included in a proposal, but be careful, because the creditor has the right to reject your proposal.  

I would seek the advice of a different trustee.  A proposal will do as much harm to your credit rating as a bankruptcy.  So, my question is,  why not do a bankruptcy and be done with it? You've done your best, but the system doesn't let you get ahead.  You took out the loans during a time when there was little help available to those who needed it the most. The newer programs would have given you relief, and limited your debt to 15 years.    You need a clean break from this, but perhaps you can explain your reasoning for a proposal over bankruptcy?  Some trustees promote proposals, but they can be rejected by the creditors, and if that happens, I believe it is automatic bankruptcy.  If you have no assets, then bankruptcy might be the better route.  The trustee should investigate and inform you whether the original lender or Tricura should be consulted. 
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Points: 81 		Post Options Post Options   Thanks (1) Thanks(1)   Quote footloose Quote  Post ReplyReply Direct Link To This Post Posted: 31/August/2012 at 5:32am

Under the Bankruptcy and Insolvency Act ( BIA ), a Division II Consumer Proposal that is rejected by the creditors does NOT automatically deem the debtor insolvent and therefore bankrupt.

Any Division II Consumer Proposal that is either "annulled" or is rejected by the creditors simply means that the debtor is prevented from making another Consumer Proposal. If a Division II Consumer Proposal is either "annulled" or rejected, it places the debtor in exactly the same position BEFORE the Consumer Proposal was made.

Under a Division I Proposal, which includes businesses as well as individuals with debts in excess of $250,000, that is rejected by the creditors, automatically deems the business or individual INSOLVENT and therefore BANKRUPT.

If "IsCollegeWorthIt" has already filed a Division II Consumer Proposal, then either the NSLSC or TriCura has not filed a rejection to the Consumer Proposal, otherwise, the Consumer Proposal would not be currently in effect. Unless "IsCollegeWorthIt" causes the Consumer Proposal to be "annulled" ( i.e. by failing to make 3 monthly payments consecutively to the Trustee or Administrator ) then when the Consumer Proposal has been completed, the student debt is discharged.

In a Division II Consumer Proposal, a Trustee or Administrator sends the Proposal to every creditor for their acceptance or rejection. In order for a Division II Consumer Proposal to be rejected, the creditor or creditors must hold at least 50.1% of the total debt included in the Proposal. If the Proposal is not rejected, then it is deemed to be accepted by the creditors and is valid and legally binding on all creditors even if they objected to the Proposal. In other words, in order for a creditor to cause a Division II Consumer Proposal to be rejected, it must be done BEFORE the Consumer Proposal is accepted.

In a Bankruptcy, the Trustee sends a list of all the debts owed by the bankrupt to every creditor. A creditor does not have right to prevent an Assignment in Bankruptcy made by the bankrupt, however, one month prior to the end of the bankruptcy, whether it be 9, 21, 24 or 36 months, depending on the type of bankruptcy, the Trustee prepares what is known as a 170 Report, ( in conjunction with Section 170 of the BIA ) and submits it to the Superintendent of the Office of Bankruptcy recommending that the bankrupt be discharged assuming that the Trustee does not oppose the discharge. A copy of this Report is also sent to all creditors. At this point, if a creditor wishes to reject the discharge, the matter is then referred to the Registrar ( Bankruptcy Judge ) and is heard in the Federal Court. In other words, in order for a creditor to reject the discharge of a debt, it must be done AFTER the Assignment in Bankruptcy has been completed but before the bankrupt has received their Absolute Discharge.

I trust this clarifies any misunderstanding between a Division I and a Division II Proposal as well as a Bankruptcy.
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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: 01/September/2012 at 5:05am
Footloose,
Thanks for clarifying that...  appreciate your post...
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Points: 4 		Post Options Post Options   Thanks (0) Thanks(0)   Quote IsCollegeWorthIt Quote  Post ReplyReply Direct Link To This Post Posted: 04/September/2012 at 7:26am
Thank you both for your reply.  The decision to file a proposal was not one that was easily made.  However I feel that because I did go to school and I did spend the money I have an obligation to pay a portion of it back, I just can't pay all of it back.  That is why I decided on a proposal vs. bankruptcy.  In my case the creditors will receive 26.7% back through a proposal whereas if I filed for bankruptcy they would recieve 1.9%.  So I'm hoping they agree to the proposal even though it isn't the standard 30% that they look for.  If they don't then at this point I'm come to terms with bankruptcy.  I really just want to move on with my life and given that I have made payments every month for 10 years and my principal balance has only gone down a few thousand dollars, I feel this is the only way to do that.
 
Thanks again for your help!
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Points: 4 		Post Options Post Options   Thanks (0) Thanks(0)   Quote IsCollegeWorthIt Quote  Post ReplyReply Direct Link To This Post Posted: 14/September/2012 at 9:49am
I have just received another unsettling letter from the National Student Loans Service Centre.  Two excerpts:

1) We have been advised that you filed an assignment in bankruptcy, a consumer proposal or orderly payment of debt.  therefore the following information has been provided to assist you in keeping your student loan(s) up to date throughout the process
2) If you loan is more than 9 months behind in payments at the time we recieve the notification of you trustee's discharge from the Canada Revenue Agency or your provincial office, you will have 30 days to being your loan up to date. this will prevent your loan from being sent to collection.
 
If I have filed a proposal (they have till today to accept or reject) then why would i have a balance on my student loans in 5 years (or sooner) when my proposal is complete?  I have been out of school for nearly 10 years.  Is this just another scare tactic?  Do that not know what they are talking about?  This letter came from NSLSC not Tricura?

Thanks in advance
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Points: 81 		Post Options Post Options   Thanks (0) Thanks(0)   Quote footloose Quote  Post ReplyReply Direct Link To This Post Posted: 15/September/2012 at 3:43am

Contact your Trustee or Administrator next week and confirm that your Consumer Proposal has been accepted. If it has, then your student loan will continue to stay "open" with interest accruing.

Under a Consumer Proposal, part of each monthly payment that you make to your Trustee or Administrator will be paid to the NSLSC as a payment on your student loan. This will continue until the Consumer Proposal is either "annulled" or until you successfully complete your Proposal. If the Proposal is "annulled", then your Proposal is now "null and void" and you are placed in the same position as if the Proposal had not been made.

If the Consumer Proposal is successfully completed after 5 years, you will receive a "Certificate of Completion" from your Trustee or Administrator and the NSLSC will also be notified by the Trustee or Administrator. At that point, your student loan will be discharged.

If the Consumer Proposal is rejected by the NSLSC, then your only other choice is to make an Assignment in Bankruptcy. In a previous post, I explained how a creditor can object to a Trustee who issues a 170 Report to the Office of the Superintendent of Bankruptcy recommending that the bankrupt be discharged.

I trust this explanation will clarify your situation with regards to your Consumer Proposal and your student loan.

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