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Royal-NCO 
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 Posted: 19/October/2012 at 4:29pm |
With these integrated loans (Ontario/Canada) that I received between 2002 and 2004, they appear as one loan ( each year). They aren't divided between federal and provincial. Is this how they excape the 6 year limit rule that applies federally? Is there no limitation on these integrated loans because I borrowed in Ontario? Which limit rules apply federal or provincial (Ontario)? This is a very, very confusing, and incredibly stupid, passive aggressive system that sets students up for trouble and then punishes them for getting into trouble, trouble that the system created in the first place. Then they whine about so many students going into default.
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SolveStudentDebt
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Joined: 05/November/2003
Location: Canada
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Posted: 20/October/2012 at 5:53pm |
The CSL4 is your Canada - Ontario loan, which is integrated. However, they are two different loans and there is a limitation period for the federal one. The limitation period is reset everytime you acknowledge it, as mentioned in many posts concerning the term. Concerning the Ontario loan, the Ontario Limitation Act applies to the Ontario government's portion. The Ontartio law says there are no limitations with respect to the recovery of debt owed to the province. OSAP is on that list.
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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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Royal-NCO
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Posted: 21/October/2012 at 1:52am |
Thanks Johnny, However, your answer begs the question: which part(s) - ontario and/or canada, is the CRA currently attempting to collect? I know Footloose stated earlier that at some point the province sends the provincial part to the CRA to collect it as well. Does this $37,000 actually include the provincial part too? Has the CRA already set aside the federal part because its statute barred? Atleast the CRA charges a reasonable interest rate at $112/month, that's only about 4% per year. What's interesting is that their monthly statement they send me shows a greatly reduced minimum payment representing only the amount I owe for the EI overpayment. Anyway, I'm back to the same place. I need help to figure this out, but I am going to push this a few more weeks to be sure its really past the six years before we start questioning them.
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SolveStudentDebt
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Posted: 21/October/2012 at 10:38am |
CRA can only collect debt owed to the government of Canada. In respect of set-off though the provinces are able to seize federal income tax rebates, but it is a legislative process and the provinces are able to use CRA for that purpose. CRA is not a collection agency. Your debt is likely called a " CDON" loan, which is a CSL4 (Canada Ontario loan). YOu will find that in a case of default, the government that you default on will be the one to pursue you. If you receive any statyements in the mail it will clearly illustrate who is collecting for who.
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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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Royal-NCO
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Posted: 10/November/2012 at 3:43am |
For several years now, I have had a credit card, in good standing, with an institution not connected to any of my student loans. Can either provincial or federal government seize that card and garnish the available credit on that card? i.e There's $720 of available credit. Can either government take that available credit and apply it to student loan debt?
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administrator
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Posted: 10/November/2012 at 6:19am |
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No, they can not draw on your credit card.
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Mark OMeara
Author of Let Go and Heal: Recovery from Emotional Pain
https://LaughSingWrite.com - http://bit.ly/heal2024
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SolveStudentDebt
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Posted: 11/November/2012 at 3:21am |
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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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Royal-NCO
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Posted: 12/November/2012 at 7:24am |
Thanks Johnny and Administrator. Thinking again about this barred issue, and I found this: Default:A Canada Student Loan, issued under the direct loans regime, enters into default once a borrower has missed payments for 270 days. Loans issued under the guaranteed and risk-shared loan regimes enter into default when payments are in arrears for 90 days or more.So when does the 6 year clock start ticking: after 9 months of missed payments, or from the day the day one is supposed to begin repayment?
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SolveStudentDebt
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Posted: 12/November/2012 at 11:00am |
The new generation program (Federal Direct) begins it's limitation clock on the first day of delinquency when payment is due. Each time a payment is made, a bankruptcy occurs, or a carelessly written instrument is issued it resets the clock. Guaranteed Canada student loans under the previous program carry the same 6-year limitation period, which begins to tick tock on the date of subrogation, meaning the day the debt becomes due and payable to the Crown. So, when the government is required to pay the bank for the guaranteed portion, that is when the limitation begins. Limitation clocks are disprupted and reset upon a bankruptcy, voluntary payment, or carelessly written instrument (letter, legal document, etc).
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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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Royal-NCO
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Posted: 22/November/2012 at 2:19am |
I was just reading one of the other posts about bankruptcy and suddenly realized that there is no way the Government would actually choose to take legal action against me at this time. Even if the debt isn't statute barred, it is 3 months away from qualifying for a discharge in bankruptcy. Both they and the provincial government would immediately lose everything in bankruptcy. Granted I too would lose, but that loss is less severe than dealing with a massive unfair debt and the destroyed credit rating. Perhaps, these two issue of statute barred and bankruptcy are very useful bargaining chips. You see, I am not actually trying to avoid the ORIGINAL debt. What I object to is paying all of that extra accumulated interest and allowing them to profit from what was originally their mistake. I would be quite happy if they rolled back all of the interest, collected together all of the pieces of the debt and sent it back to NSLSC, and then placed me back in good standing. I might even be able to afford to make payments on that REPAIRED debt.
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SolveStudentDebt
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Posted: 22/November/2012 at 4:54am |
If you are under the protection of bankruptcy then the trustee will apply for discharge. If the Crown and province do not put up any fight to oppose then they will be discharged if you meet the criteria for it. The system is very tight and in many cases non-negotiable. CRA and other governments don't appear to care one way or the other if people go bankrupt. Some CRA tax and non-tax collectors tell people to go bankrupt while refusing to compromise - or even consider it. How sick and twisted is that? Bankruptcy is in the minds and thoughts of everyone because of the powerhouse that controls and markets it. so don't think threatening bankruptcy will leverage in your favor. It won't. The government loses nothing because your neighboring student loan borrower or two pay for the shortfall. That is how the upper echelon of the federal government see the world in respect to student loan recoveries and profits. I know you are frustrated because of the system and it's stranglehold on you and everyone else indebted to them. THe system will sink it's teeth in for that interest because it is their ROI and cash cow. They fight for it. They thirst for it. If you argue them they toss contract law at you and remind you that you signed for it in agreement of the terms. The only way to stop oiling this deadly system is literally stop taking out student loans and bring back the age old view and attitudinal position whereas experience replaces the education because now it appears that education is a disability to Canadians.
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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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Royal-NCO
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Posted: 22/November/2012 at 5:25am |
Thanks Johnny for your comments. Its a very sick system. A system where they justify very high interest to account for high default levels - defaults which exist in many cases, if not most cases, because of their own administrative screw-ups and poorly considered regulations. So where does my own sense of morality fit into this? I be the good guy and dutifully pay my debt and allow the administration to get away with their errors which costs future students anyhow because of how they justify jacking interests rates to account for their own errors. Or, I continue to refuse to pay, and I still am causing damage to other students by contributiing to the high interest rates through my default. Ultimately, I am left with the conclusion that I am morally in the right to be absolutely selfish in this case. 1. I pay, and pay hugely a debt I can't affford for many, manny years into the future and allow them to get away with their error. 2. I refuse to pay and everybody just remains quiet and these debts sit in the background for ever and ever, falling off of my credit rating in about 1 year. Trouble is, as my assets accumulate, I'll be clobbered in the future when they realize I have something they can collect in court. 3. I refuse to pay, they take me to court, and I lose. This forces my hand: I declare bankruptcy. I pay a multi-year price with my credit rating which I am paying anyhow whether I choose 1) or 2). 4. I refuse to pay, they take me to court, I win. Problem: the provincial debt is still payable! We're back to 1) again. Number 3 looks most attractive to me both financially and morally. I am back to the same conclusion. Take me to court, please! I dare you!
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Royal-NCO
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Posted: 29/November/2012 at 5:32am |
Interesting to see how the facts are being manipulated to the advantage of CRA and the NSLSC. I just pulled up my credit report to check what is being said about my CSL. Date opened: 2006-09 Last activity: 2007-07 Based on that information, it would not be statute barred because the last activity date is still within the six years. However, I know with certainty I did not make a payment or acknowledge the debt in writing at that time. Presumably the onus is on them to prove that I acknowledged the debt at that time. When did the rule that "written" acknowledgement was necessary come into effect? Interesting to see that all negative info on my credit report is due to disappear by August 2013.
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Royal-NCO
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Posted: 17/December/2012 at 6:51am |
So, where'd the debt go????? For the last few months I have been receving monthly notices that I owe an over payment on my EI, and a $37,000 Canada student loan. I have paid off the EI in full, but the Canada Student loan notice has disappeared too. If it were sent on to Justice Canada, would it disappear from the notice, or is this an indication that they have acknowledged it as statute barred? Assuming its barred, this is my plan now for the ontario portion. It is about 9 months away from falling off my credit report, so I am going to now dutifully set aside $300 month into a high interest savings account. Once I have accumulated the $12,000 they say I owe provincially, I will pay it off in full with a single lump sum payment. I figure this makes sense since small payments directly now would simple renew the activity date on my credit report. If I pay it off with a lump sum, I may be able to convince them not to update it on my credit report. Of course, there is still a chance the provincial goverment will take me to court.
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Please, help me out of this mess ...