Job Discussion Forums

[oubeijin]

Here's the scoop: I'm a poor graduate student that got out of university when the getting was bad (rsmack dab in a ecession), so I took a job with JET. However the loan payments have really left me with little money to live off off, let alone save.
In Canada, they have a student loan repayment program that allows for smaller, or even no payments for a 6-month period (renewable several times). Since I'm supporting my wife and child, if I were in Canada making the same income here I'd be eligible, (according to their website's online preliminary calculator).
However, since I'm in Japan, I'm not eligible for that (for residents of Canada only).
Here's my question, would it be possible to state that I'm still living in Canada (even for 6 months at my mother's address), and apply for the program? I'm basically looking for a 6-month reprieve to let me save some money for a rainy day.
Would the CRA (the "tax man") notice something fishy? What would be the possible consequences if the CRA notified the student loan people? Do they cross-refence fairly often for things like that? Should I risk somethng like this? If anyone with experience with something like this, or perhas knowledge of the inner workings of Canadian bureaucracy could offer some advice that would be great! Onegaishimasu!

[The Dutchess]

Hello Oubeijin, let me start by saying that I feel your pain as I'm also paying back student loans. I'm not feeling the pinch so much however, as I don't have anyone else to support.

I used to work for Canada Student Loans but please keep in mind that my information is about 10 years old at this point.

As far as the Canada Revenue Agency is concerned, student loans will only check with them when you first apply for your loan. They want to determine if you under-reported your income to be eligible to get the loan in the first place. After that, student loans and CRA don't (at least didn't) talk to each other again.

Have you filed an income tax return since being in Japan? If not, even less need to worry.

For the Interest Relief Program, your problem isn't being outside of Canada. They only have whatever address you have given them. Your problem will be sending in proof of income since you're being paid in Yen and would be required to send in copies of your pay statements for verification. They'll accept a letter from your employer in lieu of pay statements but again, you'd have to make sure it didn't have anything in it identifying your employer as being in Japan.

You could find out more on the website if you haven't already. Again, my info might be out of date. Also, when you fax in your documentation, I don't know how keen they'll be about catching things like international fax numbers (if they even show up, I don't know if it would).

Hope that at least somewhat helps.

[oubeijin]

Yeah, I used to also work for a Student Union representative of student loans, but this is something that's a gray zone to me.
I have reported income in Japan already (my first year), but perhaps thinking of saying I haven't found a job yet.
I wonder how well that will go,

[The Dutchess]

I'd say go ahead and apply with whatever Canadian address the student loan office has on file for you. Sure, you could go with the "just got home and haven't found a job yet" story too. Even easier because then all you need is a letter from a family member stating that they're supporting you for your proof of income.

I personally think this rule about living in Canada is a little absurd even though I understand why it exists (somewhat anyway).

If they find out that you're not living in Canada, I think the worst that will happen is they'll tell you you're not eligible.

[oubeijin]

So long as it doesn't bring an audit or something worse down on me, I think any other outcome is fine.

[GambateBingBangBOOM]

Am I understanding this correctly?

You have a job with JET. You cannot afford to pay back your student loans. So you want to figure out a way to scam the system so that you don't pay anything back now (allowing you to 'save').

Sorry. But that's ridiculous. If the minimum payment somehow is more than $1500 a month (and it isn't because I don't think that would be possible), then call the bank and tell them your situation. You should be able to get the minimum payments down.

The plan you referred to is called 'interest relief'. If you earned the amount after taxes in Canada that JET pays after taxes, you wouldn't be eligible for that plan.

If it's less than $1500 then it shouldn't actually be that hard.

Generally people pay off debt OR save. You can do both, but that's just dividing the amount you have into two. (You have $100. You give the bank $60 for loan repayment and you save $40).

[Amarok]

I agree with Gambate. It's especially ridiculous considering the OP is on the JET program complaining about not having enough money/wanting more when eikaiwa employees and non-JET ALTs all get paid WAY less and still find ways to A: pay back loans/save up some money and B: not feel compelled to break the law/abuse the system for their own selfish gain.

[Ryu Hayabusa]

@Amarok and Gambate

Keep in mind that the OP is supporting a wife and a child on his income. I think you've come down a bit too hard on him.

[seklarwia]

[GambateBingBangBOOM]

Sorry if I came across as too harsh. But what I wrote is true. The OP wouldn't be approved for interest relief based on the amount of post-tax earnings a JET earns. It may come out that he could be based on the online calculator, but that's based on pre-tax earnings- and your after tax earnings are far less in Canada than Japan. Figure out how much Canadian pre-tax earnings are required to come up with the JET after-tax, and that's an entirely different number.

Also, it's the JET program. He spent almost a year to apply, and it's not like you can say that salary negotiations didn't go well. Maybe rent is higher than he thought, though, I guess. But if that's the case, then he's living in a city, and it would probably be better to risk teaching after school lessons (a non-no on the JET contract- one that very few people ever pay attention to) rather than scam the system in Canada.

[iverin]

Having lived in Japan while paying off student loans (OSAP) I can add a little bit of info here. Because I worked for Aeon and was making the equivalent of nearly $3500 a month I didn't even bother to attempt to get the interest relief status. Before I left I made sure that I had enough money to pay a few months of the loan payments without having to worry about sending money home. My first payment happened to fall right after I got to Japan as well. Due to only being in Japan for a few months I wasn't there long enough to really get a feel for paying loans and working but I can say that in the few months I was there I saved enough money to come home with $4000 Canadian (and that was after all bills, including a huge electricity bill from my first month using an electry heater ) and going out whenever I wanted to. I owed $36,000 to OSAP and my payment was $419 a month, which based on the salary I was making, was a perfectly reasonable amount of money to pay. I don't know salary info for JET or how much you send home for your wife and child, but I wouldn't try lying to the loan service as I am being totally honest with them right now and having a heck of a time getting interest relief when I make a third of what I made in Japan, live on my own and pay all my own bills, including a bank loan that I can't get payments deferred for.

[oubeijin]

Well, thanks for the advice, and criticism.
The thing is, I'm in the countryside, but my BoE is broke, meaning I don't really get such a sweet deal compared to other JETs. My rent subsidy is laughable (but I won't complain cause any little bit helps), as well, since it's inaka, I have to resort to automobile as my main source of transportation. Leaving me to pay shakken, and all the other garbage that comes with owning a car in Japan. As well, there's scant eikaiwa work to be had, the only school here is facing financial trouble too. I had expected a better situation when I arrived, but the only thing that has kept me afloat recently is higher exchange rate.
The online calculator I was referring to is on the Canada student loan website, it's THEIR calculator that is telling me I qualify. I based my estimate on my post-tax earnings , (based on monthly average earned so far) and that I am supporting two dependents. Thus, the only thing stopping me is residency. Which is ridiculous if you ask me.
Even with my loan payments having been reduced to minimum, but with both provincial and national loans, it piles ontop of my other bills I'm still getting gouged.
I'm not against paying back my loans, but I am stuck in Japan for several more months regardless of what I do. If I can survive this natto-hole until July 2011, I'll be fine. As of now, that picture is kinda bleak.