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 LockedHow to settle a student loan properly

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SplishSplash View Drop Down
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    Posted: 04/March/2013 at 5:41pm
Hello all.

First off thanks to everyone who's contributed to this site. It's helped so much along the way and its great to know that theres support out there for these types of issues.

I currently have a CIBC loan which has been in collections for over 9 years. I did not know much information back then but have been paying on and off when i could.  The debt is currently with FDR in the amount of $5300(feb).  I was told by a rep that they would settle this for $3600. Now i know these things accrue interest over time but i've always felt that this number has overinflated as it has bounced between agencies. FDR states that to date i have paid $1400+ Yet it seems to not have done anything.  

I now have a lump sum of $3000 which i am thinking of using to settle this account. I contacted FDR to see if they would settle at $3000. I am supposed to get a response tomorrow however i want to make sure i'm going about this the correct way. 

1. Should i request documentation stating the settlement amount? (sounds like a no brainer)

2. Is there a specific percentage of the outstanding amount which companies are obligated to take in settlements?

3. In order to build back my Credit rating i am looking in to getting a secured line of credit with the bank in order to pay the loan. (basically i give the bank $3000 they give me a LoC for that amount which i then use to pay the loan off. I then pay back to the bank and once the $3000 is paid back i get my $3000 back.) Sounds complicated but i was thinking it would help with rebuilding my credit (also i have a job which would make this easy to do now).  However is there a smarter way to go about it?

4. Anything else that i could have missed. I don't want to be naive in regards to this situation and i honestly feel that FDR isn't being as straight forward and honest with their numbers but i can't prove much aside from receiving their statement in Feb of $5300 and being told today that the balance is $5700. Just sounds fishy.

Any help or suggestions would be greatly appreciated. I want to make sure that i can get rid of this in the best possible way. I realize i took the loan out and am not trying to get out of paying, but i would like to go about this in the most efficient, logical, and financially sound way.


Thanks

Eric
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mcjupto View Drop Down
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Post Options Post Options   Thanks (1) Thanks(1)   Quote mcjupto Quote  Post ReplyReply Direct Link To This Post Posted: 05/March/2013 at 11:42am
If i only owed $3600, I would just save up $3600 and pay them off.   Get ANY OFFERS from them in writing in regards to a settlement.  Do not give them any money unless they fax you something in writing.  Dont take their "word" for it.  Dont think they will use the "honor system".  Document everything.

You can also record conversations in Canada.  All you need is the consent of ONE person(which is yourself) in order to record any conversation.


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SplishSplash View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SplishSplash Quote  Post ReplyReply Direct Link To This Post Posted: 05/March/2013 at 2:52pm
Well i could just pay it off. I was hoping though to build back my credit hence the LoC. Do you think the LoC really wouldn't make a difference.
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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: 07/March/2013 at 12:32am
If you have no credit history now and can obtain a PLOC then it will certianly add strength. How old is the loan? When did you finish studies? When did you last acknowledge it?
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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