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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stressedmomma View Drop Down
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    Posted: 18/April/2005 at 10:33am

 

I am hoping to get some information in a hurry. I have an appointment at the bank on Thursday to try to get a loan (with co-signor) to offer a proposal of ~$20K on $78K in RBC student loans. 

 

The collections rep made it sound like this would wipe the debt clean if the bank accepts it. Is this true? Might they still ask for the rest later even if I give them $20K? If it's not going to be wiped out, I might as well just pay them as much as I can afford until I die.

I care little for my credit rating (shot already) so it doesn't matter to me if a "proposal" is the same as a "bankruptcy", as I've seen proposed in other posts... I just want a way to get out from under this. I will need to do some desparate things to be able to afford the payments on the $20K, but it will be worth it not to have this massive amount hanging over me.

This is the meat of my question, which I desperately need answering before I sign anything:

 

Will the debt be gone when they've got their $20K settlement??

 

If you have a strong stomach, you can read my other post to hear the Cautionary Tale of how I got here.

http://canadastudentdebt.ca/forum_posts.asp?TID=2563&PN= 1&TPN=1

 
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SolveStudentDebt View Drop Down
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Points: 5996 		Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 18/April/2005 at 10:46am

 

 Momma,

 Unless you have a conditional release document in front of you right at this moment that clearly states that bank will accept $20,000 as full and final settlement,... you know where I am going with this ...

 Collectors do tend to toss around numbers that may sem too good to be true. In some cases, they are. Collectors are trained to look for and smell money. The collector may be trying to see what amount you can raise. If they DO NOT have the approval to accept this a a settlement, then they will do whatever they can to get you to at least pay this amount to them as a good faith payment - and make promises that they will "cut you a deal" later down the road in payments and such. DO NOT FALL FOR THIS if this is the case.

 Bottom line ... if the collector told you that this settlement is approved, get it in writing BEFORE you go to the bank for the loan. The collector should have no problem faxing you a letter outlining the setlement approval and conditions of payment. If you have a letter from them already, fax it to me and I will make sure that you are safe in this regard.

 If the collector is on a  fishing expedition to see what kind of money you can scrounge up by "playing" you into believing a settlement is on the go, that is very sleazy. it does happen though, unfortunately. If you go to the bank and get the funds, thecollector will know that you have access to 20 grand. Youwould be surprised what collectors would do and say to get twenty large out of a person.

 If you want help, let me know.

 Johnny

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stressedmomma View Drop Down
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Points: 16 		Post Options Post Options   Thanks (0) Thanks(0)   Quote stressedmomma Quote  Post ReplyReply Direct Link To This Post Posted: 18/April/2005 at 5:56pm

 

Hi there,

I have nothing in writing from the CA nor the bank that this will be approved. The CA implied that I would have to have a source of funds first, but I can see now how this might not necessarily be true...

My co-signor won't agree unless it's guaranteed to clear my whole debt, so I will call the CA and tell them that, and ask them to send a letter of confirmation first.

Thanks very, very much for the good advice.

 

stillstressedbutalive

 

 
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stressedmomma View Drop Down
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Points: 16 		Post Options Post Options   Thanks (0) Thanks(0)   Quote stressedmomma Quote  Post ReplyReply Direct Link To This Post Posted: 19/April/2005 at 6:39am

 

"Are you permanently disabled?"

"No."

"Then why would you think they'd accept 20 cents on the dollar?"

"They'd at least get something from me. I'm single with two kids, and can't afford to pay."

"So what? I'm single with four kids. They don't care."

This woman would be more at home on Jerry Springer than dealing with humans. Entirely toxic vibe.

 

Bottom line: no letter, no preparation of a settlement offer, they say, without me first confirming a source of funds. When I told them my co-signor wouldn't sign unless it would be a complete settlement, she implied my family was too stupid and didn't understand the process.

I have the number of a loans manager at RBC from another source. I am going to try that and see what general info I can glean from them about the settlement process, even if they aren't empowered to negotiate specifics of my case.

 
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