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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Forum LockedStudent loan interest and Income tax

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tkarmy View Drop Down
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    Posted: 28/January/2013 at 9:18am
Hi everyone,
 
question for you. Student loans from 2000-2002 plus whatever the feds guaranteed on the Royal Bank Student Loans 96-2000.
 
So they took my income taxes 2004-present. And I've been paying CRA 550 a month for almost two years now and getting close to paying of the debt.
 
I've never claimed interest on my income tax ever and just asked for my interest amounts paid which are quite sizable still waiting on some but for 2010-11 something like 6,000 and probably 1500 or so for 2012
 
I was reading the info about student interest and income tax deductions as follows
 

"Line 319 - Interest paid on your student loans

You may be eligible to claim an amount for the interest paid on your loan in 2012 or the preceding five years for post-secondary education if you received it under:

  • the Canada Student Loans Act;
  • the Canada Student Financial Assistance Act; or
  • a similar provincial or territorial government laws.

Only you can claim an amount for the interest you, or a person related to you, paid on your student loans. You can claim an amount only for interest you have not previously claimed. If you have no tax payable for the year the interest is paid, it is to your advantage not to claim it on your tax return. You can carry the interest forward and apply it on your return for any of the next five years.

You cannot claim interest paid on any other kind of loan, such as:

  • a personal loan or a line of credit;
  • a student loan that has been combined with another kind of loan; or
  • a student loan received from another country.

In addition, you cannot claim interest you paid because of a judgment obtained after you failed to repay a student loan."

So couple questions
 
1) what constitutes a judgement? I failed to make payments for years but no formal judgement other than a threat to garnish my wages was made... and then I started paying.
2) It says you can only claim interest on the interest paid in the last five years... so the way I read it I can't claim any interest paid prior to 2008 on my taxes this year 2012... correct but anything from 2008-12 I can claim as it was never claimed... correct?
 
Any insight would be much appreciated.
 
Thanks
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SolveStudentDebt View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 28/January/2013 at 10:10am
1) You cannot claim any interest paid when the student loan account has been litigated and a judgment is anchored in against you. You'd know it if that were in place.  
2) That is correct. You have 5 years to claim interest credits. That is my understanding based on what my forensic accountant associate advised (unless I misinterpreted something).
 
 
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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tkarmy View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote tkarmy Quote  Post ReplyReply Direct Link To This Post Posted: 28/January/2013 at 11:18am

John - This Ash Jones - you helped me when CRA was threatening to garnish my wages and then we made a payment plan... so that would not be considered a judgement just because CRA takes my income taxes... correct? A judgement would the result of a legal proceeding (judges n lawyers) and not just a lien on my taxes?

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