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 LockedWhat's wrong with getting a proposal?
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Silk2121 View Drop Down
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    Posted: 17/September/2010 at 12:23am
I've been reading about getting a consumer proposal. I have $24,000 in debt...LOC, credit card and 10 year old student loan. Seems like a good idea..it gets debt collectors of my back, I only have to make one payment, the payment is reasonable and I can afford it. Sure, it reflects badly on my credit rating but my credit sucks anyway so whats the difference? I do realize trustees make a lot of money on it, so they try to push it, but it still seems like a good option for me. What are the disadvantages of a comsumer proposal? Any insight you can give me would be helpful. Thanks.  
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Points: 1798 		Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 22/September/2010 at 2:57am
A proprosal is treated by banks just like bankruptcy...
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Mark OMeara
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Points: 13 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Silk2121 Quote  Post ReplyReply Direct Link To This Post Posted: 22/September/2010 at 3:34am

Thanks, but what I mean is...my credit bad anyway.. at this moment, I can't get a car, credit card, etc. So what difference does it make if I get a proposal or not? If i get a proposal, I will have terrible credit, but I have terrible credit anyway. At least the proposal will save me money, because I will only pay back a portion of my debt. Any insight you can provide me with will ge greatly appreciated.

 
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Points: 1798 		Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 22/September/2010 at 4:15am
Some sort of proposal or working with the creditors is certainly better than not making payments at all.  Its very important that you get the right organization or person behind you on this.

My suggestion is that you  to talk to John at CFW Group. 

www.cfwgroup.ca   1-902-835-1210

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Mark
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Whatever you choose to do, your posting makes clear that you're not running away from debt.  You clearly understand the inevitable impact on your credit history, of entering into a proposal. 

Your point that your credit rating is already low, is a good one.  Just ensure that you consider all advice, and that you pay close attention to the limited effect of a proposal on your student debt.  Don't be satisfied with a trustee's "don't worry, it will be alright" advice.  Make he or she explain, in plain English, how student debt differs from "regular" debt, in the bankruptcy context. 
 
Be the difficult client.  When the trustee tells you that something is the case, that he or she explains in plain English why it is the case.  After all, you're paying for this advice.
 
Ask them about the demonstration of "hardship".   And always decide for yourself whether you really want to seek some form of bankruptcy protection. 
 
The trustee wants to bill out the file, to get to the next client.  You have to live with the consequences.
 
Good luck.
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If you havent been out of school more than 7 years and can not demonstrate hardship, the loans may not be discharged under a proposal.   I believe there is also a risk with proposals that if the proposal is rejected then its automatic bankruptcy.  I could be wrong on this, but I seem to recall something to the effect. Rembmeber, these trustees are selling a product.  
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Points: 13 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Silk2121 Quote  Post ReplyReply Direct Link To This Post Posted: 23/September/2010 at 1:13am

Wow, thank you. These are things I didn't know. My student loan is 10 years old at least, so that is not a worry. I do have a job, so I'm not sure how they define "hardship" I want to pay but I just can't pay what they ask. The collection agency wants me to pay in full, they don't want a monthly payment. I don't have the full payment, if I did, I would be happy to pay it. I can only afford a small monthly payment. How can I pay this small montly payment without doing a proposal?
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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: 23/September/2010 at 4:44am
Hardship is defined as being unable to participate in any payment to the student loan.  Hardship is just a term. What you need to demonstrate is the extenuating circumstance that prevents you from being able to pay. Simply saying you can't pay it will not work.
 
Truth be known, you can get a much better reduction of the debt by doing it yourself. Managing things on your own is a better way. The CFW Group can show you how to do this. Rebuilding a relationship with creditors and student loan providers can only be done by you. No one else can do that for you. I have the information and tools you need to get that done if you want. The result is that these creditors and student loan providers will view this a lot different then if you go bankrupt. And yes, a consumer proposal is bankruptcy. Don't let anyone tell you anything different.
 
If you want our help, by all means call. If not, pay attention to what is being told tyo you here. All the best!
 
Johnny
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
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Points: 156 		Post Options Post Options   Thanks (0) Thanks(0)   Quote paulaffleck Quote  Post ReplyReply Direct Link To This Post Posted: 24/September/2010 at 6:19pm
I suppose it must be said that one significant difference, between a consumer proposal, and a full bankruptcy, is that credit bureaus continue to report bankruptcies for a longer time after the date of discharge, than they do consumer proposals after the end of the proposal period.

But in all cases, the fact that an individual has declared a bankruptcy or other form of insolvency, remains publicly accessible information, with the Office of the Superintendent of Bankruptcy Canada:


Therefore, there will always remain accessible the fact that you declared bankruptcy.

-P
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Points: 13 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Silk2121 Quote  Post ReplyReply Direct Link To This Post Posted: 27/September/2010 at 12:51am

The trustee made it seem like it was so easy to get a proposal done, even with student loan debt. (I realize he's is getting HUGE bucks out of it.) But according to you guys its not so easy. I have 2 questions.

1.The last time I got a student loan was January 2000, but I did take 2 courses in 2002 that I paid for myself. Do I qualify for the 10 year rule?
2. Do you still have to prove "hardship" if your loans are 10 years old?
3. I plan on doing a professional accounting designation, a CMA. Will I still be able to do it if I get a proposal done?
4. When I want to get a house in 5 years, will this proposal come back to haunt me?
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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: 27/September/2010 at 7:40am
Of course they will make it sound so easy. However, a trustee cannot speak for a student loan provider. They really can;t even speak for a creditor. BAnkruptcy comes with more risks than remedies.
 
1. Yes, you do.
2. That depends on if the student loan provider opts to oppose your discharge
3. Yes. However, employment policies vary within the corporate community who hires them.
4. It is possible, yes.
 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
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