Student Loan Hell

Well, I guess everyone has a horror story here. Mine started back in 1997 when I finished University (well I left a couple of credits short of a degree in order to pursue the purchase of a business). During my time at University, which began in 1993, regulations changed. Loan and partial loan forgiveness rules changed and I was stuck with the full amount where I thought I would be owing less. All that aside, I don't duck out on my responsibilites and so I attempted to pay back as much as I could.  I couldn't, so I got on the interest relief program. During the time I was on the interest relief program, I went to the U.S. for 3 months as part of a contract I had in my new self-run business. What I didn't know at the time is that if you leave the country, for any reason, you will be removed from interest relief so I told them where I was, not knowing that it would place me in default automatically. That was a little more than 3 years ago and I have had all of the harrassing calls, demands, threats of legal action etc ever since.  I pretty much am used to the calls pretty much weekly. Here is the kicker: I have been paying $225/month for the last three years toward my student loans. However, since they are portioned out into 3 parts, each gets $75/month. There have been times I paid a little more or made a double payment all through internet banking and post dated cheques and overall, I have paid approximately $10,000 over the last three years. This is about 1/3 of my total student loan.  However, it's all gone to interest. There was no way to consolidate and by paying smaller amounts to three portions, it all went to interest.

Now, I get all call today from Metropolitan saying I have to pay $1000 by April 29th (or else). I am currently unemployed and looking for a new job and a new life after moving back to my home town away from my self-employment hardship and they are demanding that much money.  I still have other financial burdens from my previous life and I went through a financial questionnaire over the phone and they said "oh in this case, CIBC says we will accept $500 instead of $1000 but you have to pay it by the 29th of April." They still have post dated cheques as well...they called even though they have had the cheques for months and I send 6 new ones every 6 months. I have very little money left in my savings and hopefully I find a job soon or they will make it very difficult for me to get by.