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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Cesca View Drop Down
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Joined: 26/October/2004
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Points: 37 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Cesca Quote  Post ReplyReply Direct Link To This Post Topic: Without Prejudice
    Posted: 26/November/2004 at 9:34am

November 4th 2004

Received a letter from Alliance One giving the debt total ($4389.18) and a new name - Dave Barron at extension 248


November 20th
And another letter from Alliance One with a formal offer to settle with RBC - amount (the original amount sans interest I beleive)

This offer will be null and void after November 29, 2004.  Upon receipt of funds, a second letter will be issued as an unconditional verification that the total amount was received, cleared and accepted as full and final payment of the above noted account. Upon satisfaction of the above terms, your account will be settled in full.

But the letter also says at the top WITHOUT PREJUDICE

I think I've read that any settlement offer with the phrase Without Prejudice on it actually voids the offer, is that correct?

We're ignoring this because, as usual, we simply don't have $4000 to pay.

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Coffee View Drop Down
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Points: 93 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Coffee Quote  Post ReplyReply Direct Link To This Post Posted: 26/November/2004 at 10:43am

Cesca,

There are a couple of things Alliance is not telling you:

1. Most CA's are given blanket authorization by the chartered bank client to offer a settlement, at any time, to a student debtor, provided that settlement entails repayment of the loan at no less than 80 cents on the dollar. So the deadline they have set is a tactic CA's use to try to get you to pay right away. I got about 4 or 5 of these letters until I settled with NCO on my terms in September 2004. So disregard this offer cause your are bound to see similar offers to settle in the near future 

2. Alliance has not told you of the consequences of settling in full. Settling in full is not equal to paying in full. This makes a huge difference on your credit rating. Credit is best rebuilt through paying an outstanding debt in full so you are best to pay the account in full if and when you are able. Settling the acoc**t will, however, end the harassing phone calls. 

In sum, the letter you received is a polite tactical way to induce you to pay the debt ASAP. From their prospective, the sooner you pay the sooner they get their commission.

Ok, the term without prejudice means is a term used when two parties are in dispute, and one makes a settlement offer to the other. Alliance has placed 'without prejudice' on its offer to make it clear that their settlement offer should not be construed as a waiver of rights. Importantly, communication marked 'without prejudice' cannot be used in evidence in court proceedings if the attempts at settlement fail and the dispute comes to court. (source: http://www.finance-glossary.com/terms/without-prejudice.htm)

Contact Alliance if and when you are ready to repay the debt either in full or on a payment plan. Disreagard the letter like the one you received on November 14th. These letter are both a waste of time and paper.

Hope this helps and good luck, friend.

 

 

 
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kwelmm View Drop Down
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Points: 702 		Post Options Post Options   Thanks (0) Thanks(0)   Quote kwelmm Quote  Post ReplyReply Direct Link To This Post Posted: 26/November/2004 at 2:06pm

Coffee,

It's nice to know that you settled with NCO on your terms in your time.  I am hoping to do this at some point with them as well.

But...until I have enough saved and/or borrowed to do this...they will have to wait!!!
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Cesca View Drop Down
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Points: 37 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Cesca Quote  Post ReplyReply Direct Link To This Post Posted: 26/November/2004 at 6:34pm

Thanks for the info Coffee. Much appreciated. 

Cesca
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