Oh, Monte! Are you listening?
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Topic: Oh, Monte! Are you listening?
Posted By: pogorelichfan
Subject: Oh, Monte! Are you listening?
Date Posted: 02/April/2007 at 5:25am
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Hi everyone,
I finally received a letter in response to my request asking for changes to the student loan programme to ease the payment burden for borrowers. The response is puzzling on several levels: first, it suggests that the current system is acceptable to the government in terms of repayment. This is surprising, since you'd think they would want to extend the amortization if it meant fewer people defaulted. Instead, the response suggests that the gov't would rather pay the interest on behalf of student loan borrowers who can't pay, rather than create a payment amortization period that allows the student to pay the interest under more favorable terms! In a sense, you get the feeling that the bureaucrats are simply giving people the standard reply because they've been given no direction by the Minister in terms of future changes. Second, and more to the point, there is no reference to the plan to review the student loan programme in this letter. Perhaps this person is unaware of the review, but you'd think that it would be politically pragmatic to say that the programme is under review, so as to suggest that changes might be coming anyway. Third, I have sent several letters on this issue and I always get a response that reminds me of previous correspondence, as if changes are never going to come and that the reply they sent a year ago will be perfectly up to date and will be for decades to come.
I would really like to know if the Minister is truly involved in this correspondence process or not....
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---------- Forwarded message ----------From: < mailto:pcpe-cslpcorr@hrsdc-rhdsc.gc.ca - pcpe-cslpcorr@hrsdc-rhdsc.gc.ca >Date: Mon, 2 Apr 2007 11:23:54 -0400Subject: Response to enquiry
On behalf of the Honourable Monte Solberg, Minister of Human Resources and Social Development, I am pleased to respond to your Internetcorrespondence of February 18, 2007, regarding the repayment ofCanada Student Loans. Please be assured that student debt load is an area of priority forCanada's New Government. As you are aware from our department'sprevious exchange of correspondence with you in February 2005 and May2006, several measures exist to help alleviate student debt, including longer repayment terms. Under the Canada Student Loans Program, repayment terms are set at 10years from the time a borrower signs a consolidated loan agreement.While this period of time generally provides an affordable repaymentschedule for many borrowers, provisions do exist which allow for theextension of repayment periods to accommodate the financial situationof borrowers in repayment. In such cases, the term of repayment maygenerally be extended to 15 years. Extended repayment does not go beyond 15 years as it is not seen to be beneficial to the borrower, owing to the additional interest thataccrues. Instead of increasing the time allowed for repayment,Interest Relief (IR) and Debt Reduction in Repayment (DRR) areavailable for borrowers facing difficulty. As you also know, supportin repayment is also offered through the tax system by means of afederal tax credit. The views of interested Canadians are always welcome. Thank you onceagain for taking the time to write. Sincerely, Canada Student Loans Program Learning Branch Human Resources and Social Development Canada
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Replies:
Posted By: administrator
Date Posted: 02/April/2007 at 6:31am
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Welcome to the world of form letters..... ------------- Administrator Mark OMeara Author of Let Go and Heal: Recovery from Emotional Pain https://LaughSingWrite.com - http://bit.ly/heal2024 |
Posted By: SolveStudentDebt
Date Posted: 02/April/2007 at 6:49am
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“Extended repayment does not go beyond 15 years as it is not seen to be beneficial to the borrower, owing to the additional interest that accrues.” ------------- Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com |
Posted By: SolveStudentDebt
Date Posted: 02/April/2007 at 6:51am
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For God’s sake, if it should take a borrower more than 7 years to pay a student loan, the interest should be forgiven past that point. Otherwise, borrowers never get out of debt. Unfortunately, this is how the government makes it’s money. It is a new type of national lottery but with only one winner – the government of Canada. ------------- Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com |
Posted By: old hippy
Date Posted: 02/April/2007 at 9:40am
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Wicked...
I'm just back from the CIBC where I handed over 400+ interest (again). I'm feeling a little scammed. It would be different if I were paying down the principle, which will likely never happen....unless I get a lower paying job to qualify for debt reduction. Can't win for losing with this system..
The CIBC fills out a "Deposit Acceleration" and gives me a copy. The cash is deposited into "STUDENT LOANS" transit #03112 Account #31-07116. That account must have quite a large balance. Whose is it? What bank? Is it earning a lot of interest? For who? Where is my hard earned cash going?
I'll have to e-mail Monte and see what he has to say...
hippy
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Posted By: Buff
Date Posted: 03/April/2007 at 1:42am
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hippy,
A quick Google search says transit #03112 is the CIBC National Student Loan Centre in Burlington, Ontario.
Something tells me that bank account does have quite a large balanace. Is it earning a lot of interest? Yeah, you bet it is. For who? Good old CIBC. That's where your cash is going.
Buff
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Posted By: Buff
Date Posted: 03/April/2007 at 8:14am
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That account number is probably your loan number. Check your loan agreement or call 1-800-563-2422. On the automated phone thing, you punch in your social insurance number and it tells you your account number, current balance and how much interest is being charged every day. Yeah, it's probably a really depressing amount, but that's no surprise.
Buff
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Posted By: old hippy
Date Posted: 19/April/2007 at 9:19am
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thanks, Buff... checked with the friendly, neighbourhood bank teller and that is the account no. for the NSLC. Interesting that all 3 loan payments go into the same account. The 2 federal and 1 Ontario...but money's money I guess.
Yeah, the interest is a little depressing @ $13.19 daily and then there's the little baby Canada loan of just under $5,000 @ $49 mth. Most of that is probably interest as well.
But the sun's shining..
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Posted By: CARGO1
Date Posted: 20/April/2007 at 9:26am
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The Shorter the term = higher the payment. Higher the payment = higher default rates, Higher default = more interest, more interest = PROFIT The good news= The Canadian Government only has your entire life to collect.
Cargo -------------   ����The best way to forget your troubles is to wear tight shoes. 
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