If you review the number of defaults in this country, you will see exactly how inadequate the system is. This inadequacy is no secret by any means, and still there is nothing done to cure this illness within the lending sector.

 The numbers are staggering. It states that more than 25% of student loans in Canada are in default. That is not peanuts.. that is a serious issue that doesn't seem to be taken so seriously. Pardon me... they do take it serious.. but only in the manner of recovery and what really matters in order to protect THEIR best interest and not yours.

 Interest relief ... this is something that is beneficial to those who earn less money and are truly unable to pay their loans due to financial hardship.

 For those who earn one dollar more than the minimum exempt amount, off to the wolves you go.

 For those who suffer due to problems such as the service reps  "losing" or claiming no receipt of IR and Schedule 2 documents... off to the wolves you go.

 These are serious glitches in our system.

 The United States of America has tens of millions more people in it's population. Of the post-secondary student population, the statistics categorizing student loan default are less than 11%!

 The United States has benefit programs for student loan borrowers suffering from hardship or inability to repay. The low rate of default in the USA is not because of an economic stability and growth in employment oportunity by comparison, rather it is the fact that the U.S. government (and even the private lending sectors!!!!) offer highly beneficial and advantageous progrmas to HELP it's people.

 What does out country offer it's people to help them when they truly cannot pay their student loans? They will say "Well, we have Interest Relief, DDR, and Special Interest-Free period programs.

 What they don't tell you is:

  "Oh, by the way, when you file your IR documents, we tend to lose them - or misplace them, and avoid telling you until it is time to write your loans off and send them to collection. Heck, in most cases, we won't even bother to tell you that your loans are ALREADY gone to collection. it is just too depressing call and tell you."

 When people call to file grievances or complaints to the lending sector ... they simply say:

 "Well, we did not receive your IR request forms either on time - or ever, so it is your problem and not ours. But hey, you even forgot to send us necessary information that would have qualified you for IR. I would like to tell you the truth, but since I could get into serious trouble by doing that because we fell asleep at the wheel."

 Johnny  

Interesting  I was a student in 1998 in ontario with a private school. I went through all the interest relief stuff. at the end of  Jan of 2005 my interest relief period ran out. I was told I could apply for debt reduction heres the thing i was told : since tecnically on the Last day of the month I was stillin interest relief  I was  told that I could not apply for debreduction untill Interest relief ran out. I was asked permisson to change the date of Jan of the debt reduction to feb since i had no problems at the time i agreed(learning experince never to trust these people again) application into feb as to make it possible for debt reduction. I also explained that I was in undue finacial hardship and unable to work due to  a disibilty. and that I was getting $212.00 a month from ontario works which has now become $218.00. due to a recent rate increase .I am currently in the  process of being tranferred over to ODSP(ontario disibility support programme) My question is are they able to garnish anything from these two goverment programees..

Thanks to all of you for you help this is a great site and wish I would have known half this stuff in 1998 ,Other wise I would never have went back to school.

I have never heard of someone having a social assistance cheque garnished unless it was due to an overpayment from the program.

Eg....They over pay you one month...let's say $75...then discover it the month after...and start deducting from your benefits...at $25 for the next 3 months, or something like that.

But to have it garnished for student loans.......I don't think so. 

You sound like you have everything falling into place....wish you well in the DR.....just keep it in good standing....and you will have nothing to worry about.

The problem is since i am unable to afford to keep it in goodstanding (due to undue finacial hardship and a disibilty that prevents me from being gainfully employed)the loan has now gone in to default. like almost every other prob i see here, it isnt that i dont wont to pay off my loan but due to undue financial hardship i cannot afford to pay. Which i have repeately told them. CIBC has offered to make one payment of 32 dollars for one month only to bring the loan up to date which would put it in good standing,but the catch is if I allow them to do this , this means that I automatically aggree to make a monthly payment untill the decision of the debt reduction review which according to CIBC Student center could take 5 months. I cant afford to pay one red cent to these people on $218.00 a month.

But thank you very much for your input it is highly appreciated

If CIBC has offered to make a payment of $32 to keep it up to date... I would let them do just that....it sounds like they are trying to help .. and trust me this doesn't happen very often.

You do not want this to go to collections it will ruin your chances of getting DR........if it is a matter of the $32.....I would find the way to get the money.......beg....borrow...or..........

Take it one month at a time.......seriously find a way to come up with $32 next month.  I realize that you only get $218 per month....but it will get better on ODSP..........in the meantime try to come up with the $32.......especially if it will end up knocking $1000's of $$$$$ off in the long run.  You can do it.......believe that you can.

Please also refer to my post on equi cibc frustration stories

thanks again :)

mrresolved,

Okay just read that post.......stick with it.  It sounds like you are doing everything that you can....except paying the $32

All I meant was that I would hate to see this go to collections over $32.......that would be a crying shame !!! But hey that is just my take on it.

Anybody else on this one ???

To add onto Johnny's rant:

They also don't tell you that in order to GET Interest Relief you have to have all your payments up to date. Which means that if by chance they "lost" something, misimformed you about your status etc and that your interest has accumulated to a point far beyond your control, well, too bad.

In my case, I was one month arrears (after taking a few months off to work) then back in school when they wanted to collect. I could not pay the back interest, thus, I could not get IR. The loans defaulted, and I was told I could ask them to back date it, and apply for IR though RBC. RBC said apply to NSLC, for my loans before aug 2000 and my additional loans after aug 2000. I did. NSLC tells me the application applies to ALL loans. They approve my Canada student loan, but  say that My NS Provincial loan requires the interest payment before i can get IR. (Back to catch 22). Alliant (?)Alliance one calls to tell me they demand a payment, in full or a significant portion and payments of upwards of 350 dollars a month. They tell me that, The NSLC should not be giving out advice, my loans before 2000 are a bank loan and are NOT influenced by my NSLC IR application. I am told I should go bankrupt (My consumer debt is less than 1000.00, so no point in BKR)or talk to a debt advisor. (I make 1200.00 a month, whihc barely covers my cost of living, and plus, I am 7 months pregnant too, My teacher boyfriend doesn't make enough to cover everything ...sigh) Then NSLC phones to tell me they don't have some documentation and the application has expired and will have to be renewed. They tell me that Yes, My application covers all loans, before and after 2000.

I am confused.

I am exhausted.

I have NOTHING to give them. Interest relief is supposed to be there to help people (Like me) in situations where they are unable to pay at present. But, as you can see, it doesn't actually work that way.

I no longer have any answers for this. I am baffled that an obvious solution has not arisen. It is just so ridiculous that I want to sit in the corner and smile and basket weave with glazed and dialated eyes.

Sigh.

THe end.

Hmmm re the rant maybe you should contact CTV's whistleblowers as suggested on the home page of this site.

Observer

i am in the process of sending yet another description to yet another media as I write this.

 I hope they at least present the stories. Not certain that it would do much good, of course. I was really glad to read about Alexa Mc. MP, standing up for us. That's something, I guess.

When I sent this site and further information to my mother who works well up in the food chain of HRDC, who told me that, alas, she is just a pawn in the game and has no control. I think its because they spend more time with trips to kanaskis for instance to go on hayrides and have meetings called "TEAm building" exercises. If only they wouldn't take the tax off my pay cheque and just put THAT toward my student loan instead of the paper trail, I would be so happy. I would actually start being a proud Canadian again.

TTFN

Sorry, Observer. I forgot to say thank you. You're right and I hope whistleblower can at least give some hope, false or not.

Ta

 Faith,

 Social assistance is not a viable avenue of execution. They will not attach any garnishment to this type of income suppliment. Nor wil they attach EI benefits.

 EI benefits can be attached only if you owe EI for an overpayment or MEP (family maintenance enforcement program).