Ontario provincial student loans?

2 Comments

A few years ago I defaulted on my students loans. It was not due to negligence. Financially I had a very hard time due to an accident and periodic layoffs. At the time it was hard to even keep food on the table for my son. When the loans went into default our finacial situation improved and since then I have been making consistant payments to the collection agencies. I pay more now than what the oringinal payments were. The Canadian students loans have agreed to bring me out of default, but the provincial will not budge. It is frustrating because it is difficult to get a bank loan to pay it off due to being a young family and not having any assets to put against a loan. Also I don’t have anyone who can co-sign for me. So my question is has anyone been in this situation and how did they get the loan in good standing again? Thanks in advance for serious answers only and sorry it was so long.
even though I am making consistent monthly payments the collection agency demands full payment. i am tired of the harassment

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2 Comments (+add yours?)

  1. www.wholesalewise.com
    Aug 14, 2009 @ 03:31:34

    Hi,
    When you left school and couldn’t pay you should have applied for interest relief. Many people are on interest relief for 5 years continuously after they finish school. Even then if you couldn’t make payments the government often takes it from your income tax and doesn’t put your name in the bureau.

    You may need the help of credit counselling to negotiate this situation.

    Hope this helps.

  2. Sheila
    Apr 27, 2010 @ 22:17:13

    After 7 years of being in a simular situation as you with no assets and no credit I claimed bankruptcy while on maternity leave. I was not able to be discharged after 9 months and because of the amount of money I make(which really isn’t that much). I went to court for a settlement and was given a conditional discharge having to pay 10% of the loan + bankruptcy fees ($10 000). The judge the reason why the conditional discharge was so harsh was because I will continue to profit over the years to come from my job. In their mind they do not see the blood, sweat, tears and sleepless nights put into studying or actually working for my money. I don’t think your wealth in society will change if you depend on student loans to get an education. You are better off getting a job straight out of high school. At least you will still have your credit. Good luck. Its great to talk to other people who experience a similar problem. I sometimes feel like the only one out there.

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