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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uphill_battle View Drop Down
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    Posted: 15/December/2010 at 10:00am
I'm seeking clarification of the 7 year rule.  

My first question is, are we sure that Re Ledoux, 2005 SKQB 75, 8 C.B.R. (5th) 225  will actually apply in every case?    I was in school 1999 - 2003 with student loans.  A year ago I took one course, without student loans.  

My second question is, are student loans always discharged in bankruptcy after 7 years, or is it only that they may be discharged?  I've been all over this site and many others and haven't found this out yet.


thanks for your time


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OK, I see now that it's merely the ability to apply for discharge.  I wonder if I likely would be discharged.  I have basically no assets, I'm currently on EI, I did not finish my studies but I haven't made payments for years, other than the CRA taking most of my income tax returns.  
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Post Options Post Options   Thanks (0) Thanks(0)   Quote uphill_battle Quote  Post ReplyReply Direct Link To This Post Posted: 15/December/2010 at 10:44am
Here's a better question:  

Do I have to prove good faith in order to have my CSL discharged through bankruptcy after 7 years?

If so, what does this look like?

The hardship would be easy to demonstrate.  However, I haven't made payments for about 6-7 years now.  I understand that the 7 year rule applies to last taking a course with student loans and does not refer to payments.  IE, you don't have to stop making payments for 7 years.

My idea is this:  

I have have a risk-shared loan through CIBC.  I will attempt a settlement with them.  If I can't afford the settlement that would make them happy, I will attempt a rehabilitation of this debt and begin making monthly payments.

I also have a Direct Student Loan which has come under the control of the CRA.  I will attempt to rehabilitate this loan.  Upon rehabilitation, I will attempt to have the loans discharged through bankruptcy.  

I can't afford to pay both the risk-shared and the Direct loans.  If I have to choose one to discharge through bankruptcy, which would be the easier one to clear?

My two aims are:

Pay off as much of the debt as I can reasonably afford.  This is only fair.
Repair my credit score as quickly as possible.  I'm wondering if the fact of paying of the risk-share loan will improve my score.


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