I am in debt.  Strange?  I did not plan to be in debt.  I thought that getting a graduate degree would open the doors for better employment; I graduated in 1996. I did get that job.  I was working 60 - 80 hours a week and paying off my student loans.  I paid off my personal responsibility and was working on the rest.

After two years of this schedule I was a wreck.  I was diagnosed with severe depression/suicidal and unable to work; that was four years ago.  I have started to work 4.5 hours a week for 32 weeks of the year.  At this time I can do no more.

Believe it or RBC has been helpful to date.  RBC helped me apply for and complete applications for every form of interest relief and debt reduction.  RBC recommended that I apply for medical forgiveness.  After paying my doctor for the time to fill out the forms I found out that I did not qualify. I was not sick until years after graduating (more than six months from the day of graduation). 

Throughout this period RBC has been kept informed about my health and employment situation. 

Today RBC has changed their tune.  Marv the collector called to get an update on the status of my loan.  He talked I listened.  I owe 16,000 + 3700 in interest and in arrears for payments.  He let me talk.  He found out: I am not able to work full-time; I have an income of 14,000 a year; perscriptions cost 2,800 a year; I rent; I do not have any investments; I drive a 1985 Toyota Tercel.

He was very understanding but said there is not much he can do about the loan.  He said he would pass the situation along and let his supervisor make a decision on whether to call the loan or send it to collection.  He predicted that it would go to collection.

Logically I know that they cannot get money that is not there.  But that does not mean they will not try.

If I was more with it, I should have formed a company and taken a small business loan.  I could have paid the student loan and declared bankruptcy.

I am not what to do (even writing this is causing distress).

Read my signature line. This is a debt. It's not about you or who you are.

If I were in your shoes, I would call John LeBlance at http://www.cfwgroup.ca - www.cfwgroup.ca . He can at least advise you, and might be able to help you (for a fee--minimal).

And remember that if nothing else, they can't take blood from a stone! Hang in there--we're all here to help each other and provide as much information as we can.

Well mac320 I can feel for you.

As to getting the loan for a small business and applying it to the loan then bankrupty, that is creative.... IT would be a nice thought wouldn't it.....but pretty much impossible !!

After school and a few years of hardship.... I did go into business with only the assests I had (not much)... the cash in my pocket (not much)...and dreams that I would put that education to use.  Well I discovered that due to the student loans I was not even remotely worthy of a loan to expand the business.....TOUGH LUCK was what I got from the bank.

So needless to say even though I had a viable business in the town that I live in........go through a few tough months and YOU are out of business without some kind of cushion....

The thing that always bothered me was the fact.........I went to school and then started a busines so could not claim the school student loan as business write off !!!

NOW had I been thinking..........I would have started the business and then went to school.....then I could have wrote it off !!!!

Thanks for the support.

I hope there is no link but .....

I have kept RBC up to date with my finances and health situation. To date they have not taken any action on collecting the debt.  I went to my MP last week to see if there was anything that I had missed in addressing loan forgiveness or interest free status  Day after MP's staff talked to student loans about my file.  WHAM !!!  The bank calls and well you know now ..... 

 I am going to point something out, and then I am going to let the Administrator of this site make the comment. This way, no arguments will surface.

 It was written:

 "As to getting the loan for a small business and applying it to the loan then bankrupty, that is creative.... IT would be a nice thought wouldn't it....."

  Now, by obtaining financing fora small business, only to apply the funds to a defaulted student loan, and then go bankrupt? Is that an act of good faith?

 Mark, please add your thoughts to this.

 Johnny

Well that was the point that I was trying to make .... that yes it would be a nice thought.... but realistically impossible.  Since business is able to write off education of their employees.

So as for quoting me as in it being my own thought Johnny I think that you are taking what I am saying out of context.

Having said that....my point was...that I could not even get a loan for my existing small business....let alone someone getting one to pay the student loan that was presented above.

mac320 wrote:

If I was more with it, I should have formed a company and taken a small business loan.  I could have paid the student loan and declared bankruptcy.

 No worries. Now that you have stated your point, it is clear.

I'll just add another tidbit of info to that point Johnny, to clarify even further.

The reason that I went to school.....was to start a small business, which I did.  I started the small business so that I could pay the student loans.........I worked as a waitress at night to pay for the start-up costs....only when my boss caught wind that I was going to start a business...I no longer got shifts !!!!

But I dived into it anyways.... refusing to put a hold on it again. 

I thought that once I got established and could show some money rolling in I would go back and ask for some funding again, because you see I stopped getting shifts........therefore was not eligible for unemployment insurance and there programs.

I worked day and night at my business, 16 hours a day for great stretches.... I  tried again to get a loan.... but nope !!!  After two years of that... and a relocation.....due to a leaky roof that ruined some of my inventory...... I did my taxes......and said what in the hell am I doing this for........I saw the bottom line and what I was paying out to do this.  Anyways.... I packed it in. Got myself a minimum wage job again......

I didn't owe anything on the business but a phone bill... walked away with what I went in with...

Decided that didn't work well.....should have done it differently.  I decided to re-educate myself......in a different field. Now I working, and want to pay..........yep the 10 year old student loans !!!!!