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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Phyre View Drop Down
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    Posted: 27/February/2008 at 10:42am
Ok, here is my situation. 
I am a single mom with 2 kid's, no car, no property.  Very little assets pretty much game consoles/compters would be my most valuble items. )
 
I owe $48k, Federal student loans.  My BC Student loans have been forgiven under disability (Thank goodness for that one!)
 
I am currently on PPMB income assistance, and I have a part time job.
also currently on interest relief which expires Dec 2008.
 
I have alot of credit card debt which will reach the statute of limitations Dec 2009 (Thanks to my ex Cry) 
 
I am hoping that I can declare Bankrutcy in Jan 2009.  ( my last day I attended was actually in november, 2003 I left school at that time because I had alot of anxiety and depression problems stemming from my son's disablities and requirements placed on me).  But since my loan coverage ended AFTER I stopped attending, I am guessing that student loan will use the later of those dates?
 
I would also try to apply for debt reduction, but from what I understand from the officials.. I have to pay like $274 per month interst just to qualify until it's processed...
 
Whats frustrating is.. I could have actually taken a better job where I work.. but by the time I calculated that I'd lose my PPMB status, and the credit card companies would start hounding me, my rent would go up (I'm in BC housing) I'd actually LOSE $700-$800 per month by working more.....
That doesn't even include that I'd have a harder time declaring bankrutcy.  Bah the system is horrible!  So frustrating!  I just wish I could declare Bankrutcy now and get all my debt over with!  With a clean slate I would probably be able to afford to work.  I still won't be able to work any more then about 25-30 hours a week though, and I need frequent time off.. but.. at least I could get off the system.
 
Anyways enough babble. 
 
I want to apply under the 5 year rule.  But they don't say what undue hardship is.  And the credit debt will be erased 1 year following that.. so if I attempt to delcare bankruptcy.. then  will those companies be contacted? and then what if they don't consider me to be under "undue hardship"?  Then the time wait to have the credit card compaies go after me will be extended to day 1 because there has been contact made?
 
Also.. I have 1 credit card that is in good standing (the only one that didn't have my ex's name on it!!!) what if I pay it down to exactly $0  will I still lose it?  because I would like to get my credit back in shape afterwards..
 
For someone on assistance my inome is somewhat high though (rough amounts)
$725 Child tax benefit (included $195 child disability)
$430-$480 earned income
$750 income assistance
 
also I claim $100 per month for child support that I don't actually get to keep my family safe...  They deduct it off my income assistance cheque.. but if I don't claim that he gives it to me, they will force me to take him to court to recieve more for child support.  And he has already told me that if I do that he will file for custody, and since I have depression/anxiety issues on file, and he has a full time job and is remarried, I have every reason to believe that they will assume that it is the better place for the kids.  But I will assure you that it is not.. 
 
So.. will I even qualify under the 5 year rule?  Will my income require me to make payments for 9 months?    
 
 
I have also thought about applying for federal disablity for student loans, but since it is only because of episodic depression/anxiety (which did occur during last term I attended) I have assumed that it's not going to be enough for them.  Even though I find that I cannot handle the stress of working too many hours a week, I just end up breaking down after 2-3 weeks.. and I end up taking about a month off...  Thank goodness that the job I'm at has been very forgiving about that. 
 
Sorry if I went into too many details of my personal life, guess I just wanted to rant... but if you can answer any of my questions it would Be 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: 27/February/2008 at 6:49pm
Sorry, but there is actually no 5 year rule. Currently it is 10 years. Laws were passed changing it to 7 but the government hasnt put them into place. There may be new legislation to reduce if further but the government has a habit of thwarting the passing and putting into effect the legislation.

I would try for the debt reduction first and see if you can get through the processing period. I can email a contact at the NSLC and see if they can process it quickly.

If you declare bankruptcy your loans may or may not be discharged as you have to prove you acted in good faith and that you will experience exceptional hardship in paying back the loan.

I would suggest talking to John at CFW Group and see what he can say on this...

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Mark OMeara
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Points: 12 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Phyre Quote  Post ReplyReply Direct Link To This Post Posted: 27/February/2008 at 11:58pm
according to http://www.bankruptcy****/studentloans1.htm

NEWS FLASH, DECEMBER 14, 2007- It was announced today that Bill C-12 - an Act to amend the Bankruptcy and Insolvency Act, the Companies' Creditors Arrangement Act, the Wage Earner Protection Program Act and Chapter 47 of the Statutes of Canada, 2005 has received Royal Assent.

It is not yet known when the new laws will be in force.

Student Loans: Student loan debt will be eligible for discharge in bankruptcy if seven years have passed since the former student has terminated his/her studies. In addition, in cases of undue hardship, a bankrupt may apply to the Court to obtain the discharge of the student loans after five years. For the Court to discharge on hardship grounds, it must be satisfied that the debtor has acted in good faith and is expected to continue to experience financial difficulties.
 
Yes I know it's not in effect yet, but I am hoping that it will be in effect by Jan 2009.  If not, I may need to delay it some time.
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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: 28/February/2008 at 5:52am
I stand corrected! Yes there is a 5 year option in the works.. thanks for bringing this to my attention Phyre.
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Points: 12 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Phyre Quote  Post ReplyReply Direct Link To This Post Posted: 07/March/2008 at 9:34am
Well.. starting to feel like there is zero information on any of this..
 
I contacted a trustee through a website, I wasn't sure who is good in the Vancouver BC area.  But I think it was Deloitte, or something like that.
 
But no one has answered...
 
I posted here, but as you can see.. not much happening here.
 
I surfed the web (usually I'm pretty good at getting info) zip, nadda, nothing.
 
only thing I learned is, I had better find a new bank because one of my credit cards is the same as my bank.. though it's in good standing at the momment.
 
So I contacted Bank of Montreal through email, and so far out of all the banks I have asked, they seem to be the only ones who are willing to give me a personal chequing account and a debit card, and after the first initial period they will allow me $300 immediate access to my work cheques (which are NEVER over $275!)  So shortly I will be transfering my banking over to them after banking with CIBC for 18+ years.  I also discovered that Vancity offers a "gift visa" for $2 refil fee up to $500.  I can't use Capital one for secured visa because they are one of the ones I owe money to Ouch But I have certain services which are actually cheaper to pay by credit card, ($4 per month savings) and occasionally I buy stuff online so in the long run it will save me money just to buy a gift card and be done with it. 
 
I haven't Checked with Bank of Monteral what they offer in gift/secured visa's yet though, But Vancity's account policies were 100% unnaceptable to me.  (savings account only, no debit card.. have to use money orders to pay rent.... extra fees because very limited withdrawls)
 
Anyways.. anyone who has any other tidbits of information let me know..
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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: 08/March/2008 at 4:36am
If you go bankrupt, All credit accounts must be included. You cannot go bnkrupt and continue to use credit. Otherwise, you are not bankrupt.
 
To explain undue hardship, that simply means hardship with extenuationg circumstances. For example, if you have been unble to secure employment for  lengthy period of time, and you are having difficulty meeting your basic needs.
 
One thing I would like to point out to you ... If you are trying to rebuild a credit-related outpost by securing credit accounts, that is not typical behavior of someone who is bnkrupt. THey will pick up on this.
 
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: 22 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Angela Quote  Post ReplyReply Direct Link To This Post Posted: 15/September/2008 at 12:15pm
First... How did you apply to get your provincial student loan forgiven under disability??? Still trying to do that and the federal loan....
Second.... If your credit cards are in both you and your ex's name then you can apply to the credit bureau and ask them to take your name off (not guaranteeing they will depends on who applied for the credit card). If you are the one who applied for the credit card, take your ex to court!!!! He is legally responsible to pay half, OR MORE!!!! Depending on your circumstances. Even if he didn't have access to your credit cards!
Third.... Let your ex file for custody!!! Your depression/anxiety is NOT a reason for you to not be a good mother! I also have these issues... only mine are chronic. And the court will not see this as a deterrent to being a good parent any more than they see an abusive alcoholic a deterrent to being a good parent. Let your ex take some of this responsibility from you.... LEGALLY! My ex told me that if I applied to get more then $50/month from him for our two children he would go on welfare rather then pay it... I applied... he agreed to $200/month (back in '89 when new legislature came out... the gov't took responsibility for the amt of payment and he would have had to pay me $200/month/child) so what they say and what they do are two totally different things!
Once you take care of both these issues, then you can take another look at your student loans and what to do about it. And don't forget... low income housing is just that... LOW income... whether you work full time or are on welfare full time. So, if your ex pays you more, maybe you can get off it altogether and start paying back some debt...
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Points: 12 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Phyre Quote  Post ReplyReply Direct Link To This Post Posted: 24/June/2009 at 9:41am
I haven't checked this thread for quite some time.  but since my Ex was the one added to my credit cards I'm stuck with the debt. (by the way this person is not the kid's father)
 
BC Provincial loan forgiveness was really really easy.  I just had to provide proof that I was on BC PPMB or Disability (basically unable to work and supported by the government).  It was a 1 page form.

Federal disability is A LOT more work.  I am going to try to apply, but I expecting to get rejected since PPMB status means more temporary disability not permanent (even though I have been on the program for 5 years already)  PPMB also is about half the income as disability. 

ALSO anything the kid's father pays me gets deducted 100% No way around that.  So better off to have him able to provide food for the kids when they go over there then for me to have to give him money for food when they visit. 
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