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 LockedCRA or NSLC re: interest paid through tax refunds

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    Posted: 22/August/2012 at 9:09am
I feel as though I've been calling in circles, dealing with Canada Student Loans, the National Student Loan Center, and the CRA. I somehow managed to reach the correct person 2 weeks ago, however, it took me three hours of calls and transfers to get there... and idiotically, I didn't think to write down the contact.

In any event, my question is twofold and one of the same. My Canada Student Loans and BC Student Loans have both been in default for many years. Over the past two years, thanks to an increase in income and maturity, I've begun making minimal payments.  This is where is gets slightly confusing....

The Summer of 2011, I had my Canada Student Loan rehabilitated. I had filed by 2009 taxes, and the garnished refund was applied to the interest, I then made the required monthly payments, and my loan was sent back to CSL in good standing. My BC student loan was still with Revenue Services of BC, so when I filed my 2010 taxes, the refunds went directly to them.

Fast forward a few months, I lost my job and was on EI, thus unable to make the full payments set out my CSL and my loan again was defaulted and sent back to the CRA.

My questions at this time are:

1) I was told by a CRA agent that I can still claim interest paid against my Student Loans, even if the payments were automatically made from my tax refunds over the years. I am wondering if this information is true?

2) I have not claimed any interest paid over the past 5 years, and am in the midst of trying to gather paperwork to do so with my 2011 taxes.
I spoke to NSLC (National Student Loan Centre) today, they said I need to contact CRA.

I spoke to the CRA and they say they cannot see how much was applied directly to the interest, only how much in total was garnished from my tax refunds.

I managed to contact the correct person weeks ago (as mentioned above) but it was like pulling teeth from a closed mouth... I am wondering if anyone knows who, and where the correct person to contact would be?  
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 22/August/2012 at 10:13am
1. True.
 
2. You would contact Service Canada for that. Either they will send you the statement, or they will forward you to the right area for it.
 
A lot of people go through what you have experienced. Some government department agents are rather lax in the service skills.
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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