$25/month
Printed From: CanadaStudentDebt.ca
Category: Government Program Problems
Forum Name: Repayment Assisstance Plan (RAP) Issues
Forum Description: Rules, regulations and problems (Formerly Interest Relief and Debt Reduction)
URL: https://www.canadastudentdebt.ca/forum_posts.asp?TID=1281
Printed Date: 26/March/2026 at 10:41pm
Software Version: Web Wiz Forums 12.07 - https://www.webwizforums.com
Topic: $25/month
Posted By: debtmonkey
Subject: $25/month
Date Posted: 09/July/2004 at 2:44am
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My understanding is that if I'm granted debt reduction
and still can't afford to pay I'll have to pay $25/month. My question is what if this $25 doesn't cover the interest on the loan? Does the government take care of the rest of the interest or will the unpaid interest start accumulating on my reduced debt and eat away at the $10,000 that my debts been cut by? |
Replies:
Posted By: colly
Date Posted: 09/July/2004 at 4:46am
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I am wondering the same thing debtmonkey, we both know what would be logical but knowing the program we are dealing with I am afraid of the actual answer. Considering the interest the gov. has paid over the last number of years that I have been on interest relief, it would already have covered the debt reduction relief I may now be eligible for-makes such brilliant fiscal sense doesn't it? I am also wondering and have not yet found anyone who will/can answer this question (have talked to RBC and the Feds numerous times) What is the max allowable income threshold upon which they base whether or not they deem you eligible to pay? Seems it is some magical, mysterious, complicated formula which could not be explained to me over the phone, a rep with the Federal gov. said he would send me the info last week - have not yet received it. I just simply want to know what they base their decisions on. If anyone has any insight or info about these questions, I would appreciate hearing from you. |
Posted By: debtmonkey
Date Posted: 09/July/2004 at 12:51pm
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I called Scotiabank today and they told me that $25
was the minimum that I might be asked to pay but that the actual monthly figure depends on my loan. It could be $100/month or $200/month. What if I couldn't afford that, I asked. Then I could negotiate different terms (ie a longer paying period) which of course would end up meaning interest will eat up the "reduced" $10,000 in short order. |
Posted By: danny
Date Posted: 10/July/2004 at 12:14am
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i think they are bsing you if u dont have it dont pay "it is my understanding that if you dont acknolwedge your debt in writing or payment for 6 years" --that your account may be stats barred ? not sure if stats barred means you have to consolidate your loans or leave the country and come back? ------------- Johnny save me!!!!!!!!!!!!! |
Posted By: debtmonkey
Date Posted: 10/July/2004 at 2:21am
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I think I probably have acknowledged my loan in
writing since the loan was in default (due to a bank error) and I had to send letters etc to get the default reversed. I believe I had to sign a consolidation agreement at some point as well. It's only been five years in any case since I was last in school full time so I think I'd have to wait another year. Is there any way I can find out if my loan is "stats barred" or how long it would be before it comes under the Statute of Limitations? |