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 LockedNeed advice about settling risk-shared loan

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mirving View Drop Down
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    Posted: 17/November/2012 at 4:15am
I have a risk shared federal loan via Scotia Bank that is from 1997. It is in default and ARC is collecting. I put in an application providing income information for proof of hardship and proposed to pay the Principal - roughly 16,000  (the total debt with interest is 24,000) The settlement has been "accepted" BUT there are two things that concern me. 

1. This is the wording "Please be advised that ARC, authorized collection agents for Scotiabank Student Loan -Asset will accept $16,000 as full and final settlement of your liabability on the above mentioned account." Both the collection account number and a Scotia Bank Student Loan number are "mentioned above". But the wording doesn't convince me that this agreement includes Scotiabank agreeing to settle my liability. 

2.The account number that corresponds to Scotia Bank is different from the account number I have on an old statement from them before I went into default. 

How do I know that paying the agreed upon amount really settles my debt with Scotia Bank. 

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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: 17/November/2012 at 9:01am
Back then there were actually two loans, a federal and a provincial.  Make sure you are settling both loans.  Otherwise they may come after you for a second loan.
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mirving View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote mirving Quote  Post ReplyReply Direct Link To This Post Posted: 17/November/2012 at 10:35am
The provincal loan was paid a long time ago in full. That loan was with CIBC.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 17/November/2012 at 12:16pm
Call Scotiabank and ask them to send you a letter of conditions with a Scotiabank letter head, signed by the manager of GSLAC.
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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Post Options Post Options   Thanks (0) Thanks(0)   Quote mirving Quote  Post ReplyReply Direct Link To This Post Posted: 19/November/2012 at 5:05am
ok, so I called Scotia Bank and they said that this is the only account they are collecting on and that the old account number is closed - the funds were moved to another account, the current one. Fine. 

 They also said that they don't issue any letters with conditions to me until payment because the account is with the collection agency. After the settlement is paid I can request a letter from them saying the debt is considered paid. They also say that they don't do reporting to the credit bureau on this, the collection agency does and I need to negotiate those terms with them. I'm not sure how to get them to send me a letter - I'm curious, if I was able to pay the full balance even - how could I ensure that it represented the entire debt to Scotia Bank if they are not willing to send me something in writing to insure that my payment settles the account?



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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 19/November/2012 at 8:15am
Well if I were mediating this for you I would have everything etched out from start - to remedy. The problem with this, as it is with all borrowers, the banks and agencies they hire are in it for themselves and do not really care about you. Sending money to an agency without supporting documentation is unthinkable.
 
They are giving the agency full control over this and that is a really scary thing these days, given how hungry agencies are for cash in this economic climate. It opens the door for abuse in a big way.
 
You have to get the right documentation, man. If you can't get that then you have to hire someone that can get it for you. I can but you have to hire me to do it.
 
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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