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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KarenP View Drop Down
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Joined: 13/February/2012
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    Posted: 13/February/2012 at 3:25pm
Hello.  I have been skulking around your site, looking for the information for my questions but it seems that maybe I have a new one or at least a new twist on the same old, same old.

In 1998 I took out about 14k of student loans for school in Alberta.  I went through a time of very low-income earning and my loans defaulted.  Then at the end of 2006 I was contacted by
Federal Credit & Consulting Corp about my two loans in their collections department.  I acknowledged the debt and began making payments, in the amount of $200.00 per month.  After several months of this payment schedule, the collection agent I was dealing with got insistent that I pay the balance off immediately.  She was brutal, telling me that my payments were insufficient; that I should harass/coerce my family members to lend me the money, or go to the bank to take out a loan for the money.  I told her after her second unpleasant call that I would no longer deal with her and suggested that a manager call/write me.  A manager did so, and upon my request he sent a receipt for my payments up to that point.  They were approximately half of what I paid.  Then they stopped calling, and I stopped paying.  Fast forward two years, my husband and I applied for a mortgage.  There was no sign of either loan on my credit history. Mortgage approved.  Fast forward three years later and all of a sudden one of the two loan amounts (and all of its interest I'm sure) is on my credit report again.  As a matter of note, I also started receiving statements from the Government regarding the other (larger) loan and I know it's tacking on interest at the rate of $40.00 a month.

I guess my first question is in regards to the stat thing... Is this money ever gone?
My second question is should they have put the old loan back on my credit report?
Third question: How can I pay this money back and have it not negatively affect my credit report?  My husband is military and we have to buy a new house every four to five years; it was completely disheartening that we couldn't use my income towards our mortgage because of my bad debt.
Thank you in advance for your help and expertise.
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Bleak5170 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Bleak5170 Quote  Post ReplyReply Direct Link To This Post Posted: 21/June/2012 at 8:38am
I know very little on this stuff but the same sort of thing has happened to me and others I know. When it comes to getting a mortgage, old student loans don't seem to apply. I had three credit reports done on me before buying a house and all came back clean as a whistle. But for other things such as getting a phone, the student loans, (from almost 20 years ago), pop up and prevent me from doing so. Same thing happened when I wanted to buy a computer on credit once.

    For whatever reason, the bank will let me buy a house but God forbid I try to buy a freakin' $700 computer.
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