This website is a testimony to the problems Canadian Student Loan borrowers experienced from approximately 1996 to 2008 and until their loans were paid off.

The privatization of the Student Loans system by the Chretien and Martin Liberal governments broke the system and defaulted thousands of borrowers who were trying to pay their loans. There were even stories of suicide due to the harassment of borrowers.

Read the report that I prepared back in 2007 here. Canada Student Loans-The Need for Change Fortunately the new Conservative government at the time revamped the program and fixed the system for new borrowers, but borrowers under the previous program were left with ruined credit and continued harassment from debt collectors.

I call on the Canadian Government to apologize to the borrowers affected by this fiasco and make amends.

Unfortunately the Liberal government is again clobbering the Education system with their changes to International Student Visas. Yes, there's a problem, but instead of a well thought out plan, they have pulled the emergency brake on the train causing a derailment. This has introduced unprecedented instability for both private and public education institutions who serve both international and local students.

Universities have been forced to cancel programs and layoff hundreds if not thousands of full-time and contract instructors.

Again, the Liberal government has messed up the education environment.


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Joined: 12/May/2013
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Post Options Post Options   Thanks (0) Thanks(0)   Quote BillPosters Quote  Post ReplyReply Direct Link To This Post Topic: Q for Johnny
    Posted: 12/May/2013 at 3:06pm
Johnny:
Your posts possess a rare clarity and reflect considerable knowledge of student loans, debt and circumstances.  I commend you on the time you spent providing assistance in this forum.

My son's last attendance at college and graduation was in 2005. Since then health issues
and job scarcity prevented him from paying his student loan to the Feds and the province of NB.
I filed his taxes for 2011 FY after learning that his Federal loan was "removed from active collection" by Revenue Canada ( they sent a letter to this effect.)  That letter was sufficient for the NB student loan/debt office to halt confiscating tax refunds for 6 months. (They generally follow the Feds actions.)
My son received received a small tax refund on his low earnings for that year.

This year, his 2012FY earnings are slightly higher and revenue canada, by phone, classified his loan status as "dormant."
My questions: is "dormant" the same as "removed from active recovery?"
and,
if I use his accumulated tuition credits and interest paid on student loans to reduce his taxes,
will this constitute an acknowledgement of his student debt?
His earnings since graduation have been too low to make use of these credits as he also had a Disabilty Certificate approved by revenue canada for the 2008-2012 FYs.

Your advice and any other from this forum will be gratefully received.


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Post Options Post Options   Thanks (0) Thanks(0)   Quote BillPosters Quote  Post ReplyReply Direct Link To This Post Posted: 13/May/2013 at 9:05am
     A call to Canada Revenue student loan collections, determined that:
1) A "dormant" student loan IS removed from active collection
    and will remain so unless the loan/debt is acknowledged.

2) As such, federal tax refunds or GST cheques will not be confiscated.

3) Claiming tuition amounts or interest paid on student loans
    does NOT constitute an acknowledgement of the debt.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 13/May/2013 at 10:47am
1) The government uses words like "dormant"and "removed" in written material and verbal speech in a very vague manner. The onus is always on a borrower to prove that a debt is not legally recoverable and should be closed, depending on the case.  The literature and language that agents with CRA's general collection centers provide (Belleville, Ont, St. John's, and Surrey BC) is totally incongruent with that of the office of attorney general or Justice Canada in respect of limitation issues. In other words, what "CRA call center agents" tell you is usually only a smideon of what you need to know. They do not have the intelligence or experience of the upper community that deals with internal policy and legislations as such.
 
What you need to know is that in a lot of cases acknowledgment is a VERY difficut thing to do. In others, it is as easy as simple though. The front-line system will ALWAYS lead you to think otherwise, and that you "should" do things that could otherwise be dispruptive to a limitation issue.
 
2. Federal liens are removed, absolutely. However, if there is a debt owed to the NB govenrment then they could hang on to the lien for dear life and keep taking the rebate, if they have a lien in place. I have seen cases where they defy the limnitation issues. They feel that they are not subject to any limitation issues but I have seen no proof of that yet to date.
 
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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