end of interest relief approaching...

Hello...

The end of my interest relief period of five years is approaching - the debt is around $65K and my income is $10 hr.  Needless to say, I was hoping that the bankruptcy law would be changed by now.  I have never heard of the clock restarting before either.  Does one night class of 3 hrs. a week count?  Oh, no. 

The kicker is that I am 50 yrs. of age...(I don't look it).  So this messing around waiting to put in my 10 yrs. has me getting closer and closer to eating dog food in my retirement years.  I do not have a house, or a car, and no other debts.  I am very anxious about what is going to happen when my interest relief has run out and would appreciate advice from the experienced.  Thank you so much for this website.  I am not alone.

Hey Basher13;

Quit being so optimistic. 

Okay Mark,

I've been digging around and found another Forum - "Interest Relief and Debt Reduction" where someone very kindly posted a few websites.  I'll keep digging because I like to be informed when I go to visit bank people or gov't people.  I will also try to cooperate with them, which will probably mean much paperwork.  I've always detested the "establishment". 

Hi Nago.

I don't see why you would need to apply 13 times, but then I haven't been through the process yet.  From what I understand, there is a chart of earnings and mthly payments (something like the Interest Relief) and you should know whether you qualify or not from the start. 

My concern is that even after a 10K reduction, my loan payments will still be too high for me.  I'm wondering what happens in this case - whether I  see someone at the bank and negotiate something more affordable.  Even interest-only is still too high.  Something like $25 wkly. until the next Debt Reduction?  or a better paying job? Or am I dreaming? 

Another concern is whether the same rule about ceasing to be a full-time or part-time student for the previous 60 mths. applies to debt reduction also.

Because if it does, then I will have to start researching how to deal with the collection agencies.  It's all just a big money game, isn't it.

Old Hippy

Hello,

I found this info on the NSLSC site:

In order to be eligible for DRR, borrowers must:

• reside in Canada;
  
  
• exhaust the maximum available Interest Relief (a minimum of 30 months);
  
  
• have ceased to be a full-time or part-time student at least 60 months before making the application;

  etc.............

http://www.canlearn.ca/NSLSC/support/new/nlwhanew19.cfm?lang nslsc=en#DRR

I have a problem with this.  It just doesn't make sense.  Lose - Lose.  This stupid rule doesn't benefit anyone...the bank doesn't get the 10K and I'll be dodging collectors.  Why not just give peace a chance? What's the difference if someone takes a little evening course to upgrade computer skills for instance - if they're not borrowing money to do it, and if it isn't effecting full-time employment.  ?????????????????????????????? 

Control freaks.

Old Hippy

I was just ranting Hunter2 .....not directed at you.  Would it be possible to just fail to mention taking courses?  Has anyone actually been rejected because they were a part time student?  For the DRR or bankruptcy.  There are a number of definitions of part-time student as well......where is it written? Maybe it's a typo...

old hippy

...and an 18 year old with no credit history knows this? Does this also mean that all of us who don't used this "system" deserve what they get?

And I would like to know what mathematical equation you use to determine whether the program you started will still be in demand four years later at graduation. The unemployed IT grads would like to know too...I was told when I began my studies in the late 80s that any liberal arts degree would be valuable. Silly me...should have known "they" were wrong, right?

And if your dream career isn't "in demand", should one give it up if they aren't rich enough to pursue it? Why should only the rich be able to do what they want? Oh yeah, life isn't fair, that's why...funny how only rich people or only those lucky enough to have a dream job that's "in demand" say that...

Oh, and while you're at it, I would also like the system you use to ensure that no unexpected health problems, family crises or other emergencies, financial or otherwise will occur during these four years. And then after, that banks won't repeatedly lose your forms and throw you into collection even though it's the same bank you worked for for 11 years.

And finally, what option does a economically disadvantaged young person have today: poverty because they didn't go to uni and had to take a crap job...or poverty because they went to uni and their job doesn't cover loan payments, and a wrecked credit rating because the bank screwed up their repayments?

This is why I quit business studies after one term. No matter how much the profs and the texts attempted to convince me that it was a science, I knew from experience that life is unpredictable and chaotic. Sh*t happens. You can't predict human behaviour -- yours or society's -- through some formula.

I did what I thought was "right" (because I was a lot older and had the life experiences behind me, as well as the family responsibilities that compelled me to think through the same stuff you recommend)... still ended up broke, underemployed, in debt and chased by three collection agencies.

There may be odds, but no guarantees.

Poly

Hey DebtSucks,

I almost forgot.  You're right about the class war but that's always been going on.  I've worked with mother-daughter teams in my last three positions.  Most recently, an 18-year-old high school graduate who earns more than I do because her mother pulled strings (doesn't pay rent, or pay bills) ...NepotismSucks too.  Don't get bitter....although it's hard not to.  Rage against the machine is perfectly acceptable though.  I'll keep you from getting depressed.....yeah I studied Psych.