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 LockedAdvice on defaulted student loan

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maachall View Drop Down
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Joined: 21/September/2010
Location: Calgary
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    Posted: 22/September/2010 at 12:31am
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Hello,

I found this site while researching Canada student loan debt on google.

I am looking for some advice on what I should do next to tackle my student loan and debt problems.

I have been looking at some of the various options, like consumer proposals and bankruptcy and have decided that I might contact a bankruptcy trustee in Calgary where I live. Before I do that, however, I thought I would give this forum a go and see if someone could point me in the right direction.

I realize that these situations are very complex, so I decided to list my question first and then discuss my situation below:

My current debt load is $30000, give or take a few cents.  $13010 of this is a defaulted Canada student loans debt, the rest of it is from various credit cards/loans from when I actually had credit.

I started amassing debt back in 2000 when I attended Community College for three years. Each year I took out a student loan for $5000 dollars and earned a degree in Web Design.  Coming out of college in 2003, my total debt was $15000 dollars.

I found a job at a local Call Centre and began making monthly payments on my student loan. I worked at this Call Centre until 2006 when I left due to stress.  Unfortantently, working at the Call Centre was an extremely stressful experience for the three years.

The Call Centre job was actually the best employee prospects I could find in the small town that I lived in.  I enjoyed working in IT, so I decided to move to Calgary.  I had some family and friends in the City and it was currently going through a large boom. I decided to take a risk and try it.

At the time of moving, I was smart and had close to 4K saved up.  It was enough to get a place and get started, however shortly after moving I ran into financial trouble.  I had difficulty finding a job that paid more then 13 dollars an hour because I no longer wanted to work in a Call Centre's.  My basic expenses housing and food ate up all of my pay cheques, so I ended up halting payments to Canada Student Loan.

In 2007, I was offered a job back in my home town by my father who ran his own business.  He required someone to look after his IT needs. By this point I was getting home sick and decided to move back home.

Alas, when I arrived home the recession hit and the job was no longer available.  I spent the next two years scraping together every penny I could in order to pay my rent.  Jobs were virtually non-existent, so I worked at Mcdonald's for a year and then went back to the Call Centre I worked at before.  By the end of 2009, I saved up enough money to fly back to Calgary.

My second trip to Calgary turned out to be a lot more fruitful then the first.  Within a month of arriving I found a job with a University and started making decent money.

Since I pretty much had nothing, I have spent the last year establishing a meager savings and getting my life straightened out.

I know that I am going to have this job for a couple of years to come, so I decided that I would finally tackle this debt problem since I can actually commit to something and not have to worry about loosing this job.

I have been making minuscule payments to Revenue Canada and they have taken my GST and Income Tax refund for the last four years.  While I could focus my efforts on my student loan, I do have debts with a couple of other collection agencies that I would like to deal with as well. 

It has been 7 years now since I stopped being a student and my student loan is eligible to be discharged. 

So, what it comes down to is what should I do now?  I would like to get my debts under some sort of solution.

Any insight or advice would be appreciated.

Thanks,

Mark

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