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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OriginalBHB View Drop Down
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    Posted: 14/July/2009 at 1:04pm
Hi There,

I am considering filing for a consumer proposal, however the majority of my debts (90%+) are student loans, I fear that because the majority of my debt load are student loans that the lenders will be decline the proposal.  

Both loans were through CIBC, however one of them has been paid by the government and is in collections with ARO.  The second remains with the CIBC but is also in collections with Metropolitan Credit Adjusters.

Has any one here filed successfully for a CP with the debt load being majority student loans, or will this matter?

Thanks for your help,


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administrator View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 15/July/2009 at 7:15am
A consumer proposal is treated by creditors as a bankruptcy, so be careful.   Even if you do the proposal, the same rules for bankruptcy apply to the student loans.   i.e have to be out of school 7 years for them to be possibly discharged.
 
You might want to explore your options by talking to John at CFWGroup. 
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polyhymnia61 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote polyhymnia61 Quote  Post ReplyReply Direct Link To This Post Posted: 15/July/2009 at 10:39pm
Been there...and also advise you to talk to John first.

I was approved no problem; I'd say 90% of my debt was student loans. But Mark is right -- it is covered under the bankruptcy act, so it considered like Bankruptcy Jr. you might say!

But my concern is that those who promote or process these proposals make money off these, and may not be acting in your best interests, although they will swear up and down that they are. My administrator, for example, advised me to do a consumer proposal, and when it was completed in four years, to do ANOTHER one, and once the ten years were up since I finished school (since cut to seven, as Mark says), to declare full bankruptcy!

Can you imagine? Being advised to more or less declare bankruptcy THREE times in ten years?? How would a court look upon that??

Please contact John first!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote madmaple Quote  Post ReplyReply Direct Link To This Post Posted: 17/July/2009 at 11:17am
Originally posted by OriginalBHB OriginalBHB wrote:

I am considering filing for a consumer proposal, however the majority of my debts (90%+) are student loans, I fear that because the majority of my debt load are student loans that the lenders will be decline the proposal.  

I have met with a couple trustees in the process of gathering information on my (and my spouse) options, because you should never rush into anything like this.  I put the question to them because our debt load is mainly student loans as well.  They advised that student loans typically vote NO to consumer proposals or even Division I proposals when you have been out of school less than the 7 years required for them to be discharged.  The "why" for that is quite simple ........because of their special status in such situations they would prefer that you go bankrupt, which eliminates all other unsecured creditors and leaves only them to gobble up all your cash for years to come!  They might say yes if the option of bankruptcy would discharge your student loan, but I wouldn't bet on it.  There are those that argue that student loans should be required to agree with a CP (like secured creditors) when they enjoy this special status, but I doubt we will live long enough to see any such change. 
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