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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Marlow View Drop Down
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    Posted: 01/July/2007 at 4:52am
Hello,

First of all, thank goodness for this site. The misery of student loans is compounded by the ignorance that the unholy cabal of governments and banks imposes on us. This site is a beacon of hope.

My question has to do with repayment terms. After I graduated (2002), I was almost flat broke, so to avoid defaulting I renegotiated my payment terms with the CIBC (Ontario) so that I would pay less per month, but for fifteen years instead of ten. I now pay about $550/month. After five years of payments, I think I am finally (just this month) paying down principle instead of interest.

I am doing better now financially, and I am wondering whether I should re-renegotiate again to increase my payments in a shorter time frame.

My worries are as follows:

A) Banks are so inherently evil that I am afraid to speak to them -- what if they find out that I have a higher income now and then jack up my payments to some arbitrary amount? Any contact seems perilous; it's like touching plutonium.

B) If I am indeed done paying the interest (how would I know for sure?), then should I stick with the 15-year plan, since the total is the same?

C) If I call the CIBC student loan dungeon and update my information (including income), do I have any power at all over the consequences?


Sorry for the length of this post -- and thanks in advance.

Marlow
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Buff View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Buff Quote  Post ReplyReply Direct Link To This Post Posted: 01/July/2007 at 1:13pm
I have an Ontario CIBC student loan too. It's my one undefaulted loan. I also changed my payment terms a few times and it's currenty at $50 per month. I don't bother phoning them to make changes anymore. If I have a few dollars extra, I just make an extra payment over the internet. I know they don't like it because it cuts down on the interest they charge me, but they are obligated to accept it.
 
My suggestion would be to make bigger payments or more payments to pay it off sooner. You don't have to give them your financial information, just payment information. They won't jack up your payments. As far as I know, they can't do that without your approval and signature.
 
Buff
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SusanfromAB View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SusanfromAB Quote  Post ReplyReply Direct Link To This Post Posted: 02/July/2007 at 8:49am
As far as I know, you are never done paying interest on student loans.  The calculate a daily interest charge, if that gives you any indication!  I called RBC St Lns a few weeks ago and told her I was taking a bank draft into a RBC Branch to pay the balance off...she told me to add an additional $3.81 x 3 days because the payment gets processed in Ontario (I'm in AB)! 
I agree with Buff - just throw extra money on it.  Increase your payments on your own schedule, if you want/are able to; you'll just need to make the additional payment instead of getting them involved in changing the terms.
Hitting them hard!
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Marlow View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Marlow Quote  Post ReplyReply Direct Link To This Post Posted: 02/July/2007 at 3:21pm
Thanks for your suggestions. I will try to find out whether the interest is paid "up front" or not. I hope it is, because until this month I have not seen my principle decrease at all.  I should have mentioned, by the way, that I have a federal, a provincial, and a "combined" loan; I only have access through CIBC to information on the first two.

How do I make payments online? I would like to do this, but it doesn't seem to be available through CIBC online banking.


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Buff View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Buff Quote  Post ReplyReply Direct Link To This Post Posted: 03/July/2007 at 4:42am
It is available through online banking. Set it up as a bill payment. It's listed as CIBC NATIONAL STUDENT CTR. Your account number is your 7 digit loan number.
 
Buff
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Buff View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Buff Quote  Post ReplyReply Direct Link To This Post Posted: 03/July/2007 at 4:43am

Correction, it's CIBC NATIONAL STUDENT LOAN CTR.

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