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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SolveStudentDebt View Drop Down
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Joined: 05/November/2003
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Points: 5996 		Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Topic: Collection Agency Activities
    Posted: 05/March/2008 at 1:20pm
Hi Folks - There are a lot of people who are being pressured, and even bullied by collectors to do one or any number of the following things:
 
1) borrow money from high interest financing companies, usually at rates that exceed 24 or 25%
2) collapse RRSPs and other critical investments
3) borrow quick money from one of those pay day loan places at excruciating interest rates
4) Defer mortgage and car loan payments
5) max out credit card limits to pay towards student loans
6) Ask employers for money in advance
 
These particular pressure tactics cause people more harm than good. For instance, borrowing money at 25% (plus) interest is something that would be considered a financial burden. The same goes for the payday loan places as they charge wuite a stiff charge if you do not pay on time.
 
It would be good for those of you to open a discussion about these issues. Exposure of this will prevent those who are intimidated by that business sector to fall into these traps.
 
 
 
 
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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cayt View Drop Down
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Points: 14 		Post Options Post Options   Thanks (0) Thanks(0)   Quote cayt Quote  Post ReplyReply Direct Link To This Post Posted: 28/March/2008 at 2:51pm

I have heard every one of the the above threats.  When I initially started to experience financial difficulties I requested forms for student relief which I never received.  Eventually I did receive a form seven months later only to be told that the form had to be received the following day for my eligibility.  I faxed the form the day I received it  - Friday - and when I followed up on monday I found out my loan had already gone to collections???   The stress and anxiety has been overwhelming and like many other students I just don't have the funds to make payments at this time.  For three years I consistently paid almost 1000 each month,  when I ran into financial problems I barely had time to turn  around before my file was sent to collections.  I have been repeatedly threatened and intimidated.  After several phone calls from the collection agency and from myself in an attempt to initiate resuming payments,  one collector told me to borrow the money from family or take our a loan.  Impossible when my credit rating is now shot due to student loans.  Borrowing from one entity to resolve an outstanding debt to another is not going to solve the problem. 

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Points: 4 		Post Options Post Options   Thanks (0) Thanks(0)   Quote bengalmom Quote  Post ReplyReply Direct Link To This Post Posted: 02/May/2008 at 6:57am

Hi Johnny,

I am one of those people that the collections guys have tried these tactics on.  I must say though, so far, cross my fingers, CIBC and HRDC have been patient and understanding.  My beef is with ARO.  I have had the "Unit Manager", the "Legal Manager" and a few other neat and nifty titled people threaten me, tell me to borrow from family to pay them, go to banks and get loans to pay them off, fill out income verification and then demand ridiculous payment amounts that I could easily pay with "payday loans".  Since they obviously do not know what I do for a living (I do collections for a bank) they do not realize that ANYONE with a defaulted student loan will in all likelihood NOT be able to get a standard loan from a banking institution.    I am frustrated with these people and would be willing to find out how to get rid of them.  Any suggestions would be appreciated.
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Points: 5996 		Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 02/May/2008 at 4:41pm

Listen, they (collectors) use all sorts of creative titles to either intimidate you - or entice you in to their arena. I have heard them all.

"claims processing manager"
"legal enforcement unit"
claims processing and litigation division"
"default and investigations unit"
"quality assurance and consumer protection department"
"counseling services"
"legal department"
"payment enforcement unit"
"civil litigation unit"
 
It is quite humorous listening to collectors address themselves like this.
 
As for getting rid of them, that is not going to happen. ARO collects for the Ontario government, National Bank, and CIBC, which I presume you owe at least one of them. If you want my help, you do have to become a client. Mere suggestions are not going to work well for you. Remember, you owe money and they are trying to colect from you Any resistance or objection you raise will prompt them to approach you more aggressively. I would have to get involed to get you back in the driver's seat.
 
 
 
 
 
 
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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bengalmom View Drop Down
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Points: 4 		Post Options Post Options   Thanks (0) Thanks(0)   Quote bengalmom Quote  Post ReplyReply Direct Link To This Post Posted: 12/May/2008 at 3:19am
Thanks for the note.  I declared bankruptcy a few years ago and this was recently taken off my credit rating.  Problem was the timing of the backruptcy had my student loans divided up CIBC took my prinicple of the Federal Portion, HRDC took the interest on the CIBC Federal loan and ARO got my provincial loan.  All parties in the federal side have been patient and were willing to renegoiate the loans and I have a good working relationship with them.   I would be willing to renegoiate the provinical loan with the Ontario Government, if ARO would send me back.  I make my regular payments.  Also, I noticed that the federal portion is reported on my credit rating as making payments, but ARO lists me as deliquent and has not updated my file since my bankruptcy.  When I asked them, they said that it is the policy of the Ontario Government not to report regular payments.  The only time the credit report is changed is when the account is paid in full.  That makes my credit rating look bad when it is not.  Can this happen?
 
After talking to my MPP, I found out that there are a number of issues with provincial student loans issued between 1994 and 1997.  There was this initiative to get single moms and welfare receiptants off of government assistance by offering them "free" schooling.  I was one of these people due to marriage breakdown.  Half way through the program the new government cancelled the program without telling anyone and gave all these people student loans.  Most of these people were going into fields that would not been able to pay back these loans (low paying jobs etc).  Government felt that if the choice was given to these people most would forgo the education and go back on the assistance program.  So here we all are today, most in traditionally lower paying jobs, trying to make a living becasue we got an education that we do not want to waste. 
 
Guess what, that same program just got a new facelift and the Ontario Government is pushing it again!
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