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recessiontime
Joined: 21 Jun 2010
Location: Got avatar privileges nyahahaha
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Kuros
Joined: 27 Apr 2004
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 Posted: Sat Mar 02, 2013 7:43 am Post subject: |
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$525 million of these student loans are legally uncollectable.
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[T]he department has previously said that more than 98 per cent of the loans written off by the government are dropped because of the expiry of a six-year limitation period between when the borrower last acknowledged a loan and any legal activity by the Crown to recoup that debt.
Once this period has expired, the Crown no longer has the authority to collect the debt. |
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Steelrails
Joined: 12 Mar 2009
Location: Earth, Solar System
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| Posted: Sat Mar 02, 2013 9:30 am Post subject: |
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| I don't know about Canada's specifics, but what an insult to those that strived to pay their loans and worked long hours after school to make their payments. Lesson in this? Just take out as much credit as you can and hope that some politician panders to you and forgives your debt. In the meantime, live large. People who responsibly pay their bills on time are saps. |
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Kuros
Joined: 27 Apr 2004
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| Posted: Sat Mar 02, 2013 9:35 am Post subject: |
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| Steelrails wrote: |
| Lesson in this? Just take out as much credit as you can and hope that some politician panders to you and forgives your debt. |
That is precisely NOT what happened here. You're describing what happened with the TBTF banks in 2008 and 2009. |
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slothrop
Joined: 03 Feb 2003
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| Posted: Sat Mar 02, 2013 12:35 pm Post subject: |
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edit
Last edited by slothrop on Wed Mar 20, 2013 8:18 pm; edited 4 times in total |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Sat Mar 02, 2013 1:33 pm Post subject: |
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| Steelrails wrote: |
| I don't know about Canada's specifics, but what an insult to those that strived to pay their loans and worked long hours after school to make their payments. Lesson in this? Just take out as much credit as you can and hope that some politician panders to you and forgives your debt. In the meantime, live large. People who responsibly pay their bills on time are saps. |
It doesn't work quite that simply.
The government can take your tax refunds (if you are working and paying taxes), withhold your tax credit/gst/hst rebate checks (from low income earners), seize assets or garnish wages. It also shows up on your credit report.
If any of the above has occurred in the last 6 years your debt is still legally collectable and won't be written off.
The other option to get it written off is to file a bankruptcy but it won't be discharged for 10 years after you finish school. (means you are still in bankruptcy for up to 10 years).
To effectively get out from under your student loans you have to be infirm, dead with no assets in your estate to be seized or be "off the radar" and out of the country for a decade or more (no income to seize, no assets they can find and no knowledge of your whereabouts).
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Titus
Joined: 19 May 2012
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| Posted: Sat Mar 02, 2013 4:32 pm Post subject: |
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| Steelrails wrote: |
| I don't know about Canada's specifics, but what an insult to those that strived to pay their loans and worked long hours after school to make their payments. Lesson in this? Just take out as much credit as you can and hope that some politician panders to you and forgives your debt. In the meantime, live large. People who responsibly pay their bills on time are saps. |
Michael Hudson, an economist at the University of Kansas City met with British bankers at LSE. Discussing their move to push credit cards and debt on the poor they told him that:
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| "we've had in intellectual breakthrough. We've found that the most money we can make - and this is going to amaze you - the poor are honest! They actually believe they have to pay their debts!. None of our other customers believe that. ...All our other customers are trying to stiff us. ..and now we find that the poorer they are the more they wanna pay their debts. They must think they're gonna be millionaires! |
This is from a lecture called The American Monetary Act. It's on youtube.
When debts are unreasonable then rich people and corporations move to get out of them. Average Joe thinks there is some kind of morality involved. |
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Leon
Joined: 31 May 2010
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| Posted: Sat Mar 02, 2013 5:26 pm Post subject: |
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http://www.amazon.com/gp/aw/d/1451684932/ref=mp_s_a_1?qid=1362273595&sr=8-1&pi=SL75
I'm reading this book now, called bailout, written by the guy who was in charge of preventing fraud for the tarp funds for the bank. I'm only about 1/4th of the way finished, but it shows how captured the government is by financial institutions, and how stupid it is to hire the regulators from the big banks themselves. Anyways, imagine how much better it would have been to forgive student debt, or if the money had gone to help thoughts who received the fraudulent housing loans. I prefer this Canadian program to the American one by several orders of magnitude. |
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Steelrails
Joined: 12 Mar 2009
Location: Earth, Solar System
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| Posted: Sat Mar 02, 2013 5:37 pm Post subject: |
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| For the record, I in no way, shape, or form endorse the bank bailouts. I'm against bailouts in general. |
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Fox
Joined: 04 Mar 2009
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| Posted: Sat Mar 02, 2013 6:56 pm Post subject: |
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| Steelrails wrote: |
| Lesson in this? Just take out as much credit as you can and hope that some politician panders to you and forgives your debt. In the meantime, live large. People who responsibly pay their bills on time are saps. |
I do not think that is the lesson here. The lesson is that interest-bearing loans -- loans which, in principle, can require infinity repayment of a finite borrowed sum -- are socially destructive absent an effective forgiveness system (and probably even present one, but that is a broader topic). The consequence for hastily taking out a student loan at age 18 (after the economic system has been rigged to push you into doing it, no less) and then failing to get a decent job after graduation cannot be life-long debt slavery. We are not talking about guys graduating, walking into 100 grand a year jobs, and then giving society the finger here. |
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Adventurer
Joined: 28 Jan 2006
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| Posted: Sat Mar 02, 2013 9:43 pm Post subject: |
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| Steelrails wrote: |
| I don't know about Canada's specifics, but what an insult to those that strived to pay their loans and worked long hours after school to make their payments. Lesson in this? Just take out as much credit as you can and hope that some politician panders to you and forgives your debt. In the meantime, live large. People who responsibly pay their bills on time are saps. |
I know what you mean. My loans are paid off, but these folks had their wages garnished and were harassed and what not and waited it out. I'm not sure if it was simply comfortable for them. I don't really begrudge them. I don't think tuition should be so high. I believe in more of Pierre Trudeau's vision on having education more affordable for students. If we have to write off a lot of the debt, why not put more money into education? |
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rollo
Joined: 10 May 2006
Location: China
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| Posted: Sat Mar 02, 2013 11:34 pm Post subject: |
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Not Canadian. Know nothing about this but my experience with student loans was a horror story. the loans were pushed, low interest, no problem. Just sign up and you had money for education. Well i paid and paid and I was in Korea when i got a strange letter that stated that the interest rates on my loans had went up and some penalty clause had been triggered. Oops. I was basically starting over. it seems they sold my loans to some sleazy outfit. Well I paid for another two years and never missed a payment. Returned to the states to find that more "penalties had been added. i contacted the department of education and to make a long story short after fighting a long battle my loans were forgiven since the bank had violated the rules. But how many people get caught up in these schemes and never get out from under them. As it was I paid about triple what I borrowed.
Banks are not our friends!! |
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12ax7
Joined: 07 Nov 2009
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| Posted: Sat Mar 02, 2013 11:54 pm Post subject: |
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| ttompatz wrote: |
| Steelrails wrote: |
| I don't know about Canada's specifics, but what an insult to those that strived to pay their loans and worked long hours after school to make their payments. Lesson in this? Just take out as much credit as you can and hope that some politician panders to you and forgives your debt. In the meantime, live large. People who responsibly pay their bills on time are saps. |
It doesn't work quite that simply.
The government can take your tax refunds (if you are working and paying taxes), withhold your tax credit/gst/hst rebate checks (from low income earners), seize assets or garnish wages. It also shows up on your credit report.
If any of the above has occurred in the last 6 years your debt is still legally collectable and won't be written off.
The other option to get it written off is to file a bankruptcy but it won't be discharged for 10 years after you finish school. (means you are still in bankruptcy for up to 10 years).
To effectively get out from under your student loans you have to be infirm, dead with no assets in your estate to be seized or be "off the radar" and out of the country for a decade or more (no income to seize, no assets they can find and no knowledge of your whereabouts).
. |
And 6 years is a long time. It's much shorter at the provincial level in some provinces.
http://credit-collections.ca/statute-of-limitations-on-canada-debts/ |
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Julius
Joined: 27 Jul 2006
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| Posted: Sun Mar 03, 2013 3:08 am Post subject: |
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| OP wrote: |
| Canada writes off 540 million in uncollectable student loans |
...while all the lifers in Korea breathe a sigh of relief.  |
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recessiontime
Joined: 21 Jun 2010
Location: Got avatar privileges nyahahaha
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| Posted: Sun Mar 03, 2013 3:31 am Post subject: |
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| Tompatz is on point as usual. |
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