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 LockedNS Loans - Service NS & "Crown Debt"

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    Posted: 05/February/2013 at 10:56am
I am in need of some advice on provincial (NS) student loans. 

In 2009 I had a bankruptcy, which was a longer-than-usual bankruptcy (more than 9 months). I was discharged in 2010. After a (luckily) only minor delay in getting my discharge papers, my attempts to contact both federal & provincial student loan offices were met with brick walls because Industry Canada hadn't notified them about my discharge. It took nearly a year for them to do so. During this time the debt continued to rack up interest charges. 

I checked my credit report - on what *would* have been the day after a discharge had my bankruptcy been the normal length, my NS Loan was removed as "transferred". It has yet to reappear - likely because when they tried to re-add it under Service NS I was still in bankruptcy. Or so I assume. 

After Industry Canada finally bothered to tell the loan agencies that I was discharged I got a snarky call  from Service NS demanding 100% of my loan ASAP or I would be taken to court. This was 2011. As I did not have the $10k sitting around, I asked what my options were for setting up a payment plan. I was told, after the horrible person laughed at me (!), that it was pay it all immediately or go to court. 

At that point I had no more phone contact with them, and did manage to setup a payment arrangement for my CSL via the CRA - no problems there, other than the challenge of paying $50k in 5 years. 

I have now received a letter from Service NS stating that my debt is a "Crown Debt" (can't seem to find any definition of that as it applies to me anywhere) and that I am expected to pay. I have yet to call them back, mostly because I know they will likely just tell me "all or nothing" again. 

What are my options here? Paying this and my CSL would be tight, but possible - if I could do monthly payments. What does "Crown Debt" mean, if anything? When I'm told "pay the full amount or go to court", is that true? They do have a lien (as does CSL) against my income tax returns. GST, etc. Other than that they have not received anything from me. 

Are there any resources on student debt for NS out there? Google is not turning up much. Mostly I just want to know what my rights are and what I can reasonably ask for. 

Thanks in advance. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 06/February/2013 at 2:07am
The collection unit for Service Nova Scotia is comprised of a group of former third-party agency collectors.  When the national collection agencies closed down in Halifax and centralized, all of these collectors ran towards the NS government for collection jobs. So, it is exactly like a 3rd party agency in there because management and staff are all of the same attitude and behavior as per their usual.
If you seek help they will abuse their power and position and attempt to restrict you from doing so. Unfortunately, they are known for that and my office has documented evidence of it. You have also experienced it obviously, based on what you described above. They abused you enough to make you not want to communicate with them any further.  
The "Drown Debt" issue means debt owed to the government, provincial or federal.
If you are going to communicate with that particular office I would suggest you find a way to record your call with whoever you are assgined to.  If you do advise the collector that the call is being recorded they will shy away pretty quickly and be very cautious about what they say and how they treat you. However, a few of them really do not care and feel that they are impervious to any consequences. If you choose not to tell them you are recording, well then you will may capture some pretty egregious yet entertaining material.
 
There are no limitations in respect of a student loan owed to the province of NS. So, if you are unable to pay you should communicate that and demonstrate it as per the hardship and any extenuating circumstances that you are expriencing. Or, if you are able to pay something make the offer in writing and support it with your financial particulars that demonstrate why you are only able to pay what you are offering.
 
Doing this in writing is also a very safe way because you will have a paper trail of good faith demonstration. The more good faith and willingness to participate you demonstrate takes away from their arsenal of usual and abusive collection tactics.
 
If they do take legal action, the end result will likely be a repayment plan. You do get to have your story told and despite what they threaten you with prior to taking the action.
 
If you have any other questions let me know.    
 
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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