Thanks for that rather brilliant summation on the transition history of Canada student loans since their inception. You should post a copy of it over on the Canada Student Debt Forum, aka the Canada Financial Wellness Group (although it appears to be a one man show).

http://www.cfwgroup.ca/forum/viewtopic.php?f=33&t=844

I think the moderator, Johnny, could use some help, and your post(s) would greatly assist. You might also make a copy in case it gets deleted and covered over by more Nigerian spam.

I'm still a bit confused about dates though. If the provincial portion of BC student loans can't be revived after they expire, as per page 2 of the link below, why were they included in the pretrial settlement agreement or judgment - I know not which, circa 2008? That was an issue the blogger brought up in her original post. After all, she relates that they were "lost for many years" in a government vault after she graduated in 1999 until collection efforts were restarted in 2008. (But then, how many years was that?????)

http://www.lss.bc.ca/assets/communityWorkers/advocatesConference2008/studentLoans.pdf

I can't imagine the lady having to pay $600 a month under a consumer proposal. And she sure needs to get rid of that 11% interest rate.
But then there's the R7 problem. Maybe, she's still R1, despite her heavy debt load,and has a mortgage coming up for renewal. Whatever. The trustee will help her.

You should very seriously consider a Consumer Proposal. It is NOT a Bankruptcy and you do not give up any Assets.

A Consumer Proposal lasts a maximum of 5 years but can also be for a shorter period. The interest can usually be frozen or at best reduced.

Your monthly payments would be much less than what you are paying now and at the end of the Proposal, your student debt would be eliminated.

During your Proposal, all collection and legal activity ceases.

This has just got to be a WIN-WIN situation for someone in your situation.

Please give it more serious consideration and do yourself a favour. There are "boatloads" of information on the Internet that you can read so that you can gain a better understanding of what it entails. Just "Google" Bankruptcy Canada or Consumer Proposals and you will b flooded with information.

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Educating one Consumer at a time

Thanks for the insight. This is an incredible amount of information to take in. Thanks for the advice and the knowledge. Hopefully this helps others out also. Basically the summation is my only option is to continue to pay or file bankruptcy. Bankruptcy is not an option I have already looked into it. thanks again to both of you who replied.

@DanielBl

I have read your latest post with much interest and your comments are "bang on" PROVIDING these loans are owned by the Federal and B.C. governments. But they are not. These loans are owned by the Bank of Nova Scotia as monthly payments of $600 are being made to this Bank.

After reading, studying and giving some thoughtful consideration to these posts, I believe that I have found the key to the puzzle.

The Canada Student Loans Program started on August 1, 1964 and has gone through 3 regimes. Under the Canada Student Loans Act, each participating financial institution ( not all financial institutions participated in the student loans program ), who issued student loans signed an agreement with the Federal government whereby any student loan that subsequently went into default, was GUARANTEED by the Federal government and the participating financial institution would be reimbursed by the Federal government and the loan would subsequently be returned to the Federal government for collection. These loans became known as "GUARANTEED" student loans.

By the late 80s and early 90s, the Federal government was incurring subtantial liabilities for defaulted student loans due to student bankruptcies and the "hit and miss" collection practices of collection agencies who were assigned these defaulted loans to collect. The Federal government then decided it was time to change direction and to share the risk of defaulted student loans with the participating financial institution. In 1994, the Canada Student Financial Assistance Act was enacted and proclaimed in force effective August 1, 1995. Under this Act, each participating financial institution who issued a student loan was fully responsible for the collection of defaulted student loans. To help mitigate the risk incurred by the participating financial institution for defaulted student loans, the Federal government paid a "RISK PREMUM" to each participating financial institution based on a percentage of student loans that were expected or anticipated to go into default. These loans became known as "RISK-SHARED" student loans. However, there is one exception to a "RISK-SHARED" student loan. Once a student has completed his/her "end of study period", no payments are required on the student loan for 6 months, however, interest will accrue. If after the 6 month period and for the following 12 months, no payments have been made on this loan, then this loan is returned to the Federal government for collection. These loans became known as "PUT-BACK" student loans.

These defaulted "RISK-SHARED" student loans became a real "nitemare" for the participating financial institutions and they wanted out. And so, the financial institutions lobbied the Federal government to end this program and it was subsequently terminated effective July 31, 2000. Since this date, all Federal student loans are handled directly by the National Student Loans Service Centre and all Provincial/Territorial student loans are handled directly by their Provincial/Territorial student financial aid office. The financial institutions are no longer involved in the issuance of student loans.

Effective as of August 1, 2005, the Federal government is no longer assigning defaulted student loans to private collection agencies to collect. And, effective August 1, 2009, all collection agencies who were assigned defaulted student loans to collect were required to return these assignments to the Federal government.

Currently, all Federal government student loans are administered by the National Student Loans Service Centre, including the initial collection of all defaulted student loans. When a Federal student loan goes into default, the NSLSC will attempt to collect on this loan for 150 days ( 270 days for an Integrated student loan meaning both a Federal and Provincial loan in one payment ). Failire to secure any payments on a Federal student loan will result in the defaulted student loan being transferred to the Canada Revenue Agency ( CRA ) for collection. Failure to make arrangements with the CRA for the repayment of the student loan will result in this defaulted student loan being referred to the Department of Justice where the Attorney General for Canada will commence an action in the Federal Court for a judgment from which they will garnish bank accounts and wages and if necessary, seize assets, In addition, the CRA will withhold income tax refunds as well as GST rebates.

In B.C., all Provincial government student loans are administered by the B.C. Student Loan Service Centre. When a B.C. student loan goes into default, it is transferred to StudentAidBC to collect. The StudentAidBC will attempt to collect on this loan for 150 days ( same as Federal defaulted loans ). Failure to secure any payments on a B.C. student loan will result in the defaulted student loan being transferred to the Revenue Services of British Columbia for enforcement similiar to Federal defaulted student loans.

After having provided some insight and background on the collection and enforcement of both Federal and B.C. student loans. I now turn my attention to the matter at hand.

AND NOW, TO REVEAL THE KEY TO THE PUZZLE.

In 1991, the TD bank, became a participating financial institution under the Canada Student Loan Act, by making "GUARANTEED" student loans. Although any student loan issued pursuant to this Act that subsequently went onto default, was guaranteed by the Federal government,, the paperwork and documentation required to process these defaulted student loans in order to receive the necessary reimbursement from the Federal government was horrendous and the TD Bank wanted out. And so it struck a deal with the Bank of Nova Scotia for the BNS to purchase these student loans for a discounted price.

In 1994/95, a deal was struck and the puchase of these student loans was completed after July 31, 1995. That meant that now this purchase was made under the provisions of the Canada Student Financial Assistance Act which was proclaimed in force effective August 1, 1995. thereby changing the status of "GUARANTEED" student loans to now "RISK-SHARED" student loans.

That is why the Bank of Nova Scotia owns these student loans and not the Federal or B.C. government. And as long as the Bank of Nova Scotia holds a judgment on these loans, there is virtually no limitation period.

A FREE intial consultation with an Administrator appointed under the Bankruptcy and Insolvency Act ( BIA ) or a meeting with a Trustee in Bankruptcy to discuss a Consumer Proposal would be warranted at this time.

As the late Paul Harvey used to say at the conclusion of each broadcast, "And now you know the rest of the story".

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Educating one Consumer at a time

I apprecaite the advice thank you to both of you. Something is obviously wrong here, It sounds like the government should be coming after to me not the bank. So I need to find why the bank still ahs this loan and why it never went to the government for default. What constitutes a defaulted loan? Not making payments or missing payments?
I found the document it says I have been making the 300 bi weekly payments since 2008-09-01.

I saw your post yesterday, but it was impossible to make sense of it. Perhaps you misunderstood the lawyer regarding limitation periods.

I notice they're using Section 9 of the BC Limitations Act to argue that, unlike the other provinces, the 6 year limitation period on the provincial portion of BC student loans, CANNOT be renewed after it expires. The link below may contain some helpful details on this.

http://www.lss.bc.ca/assets/communityWorkers/advocatesConference2008/studentLoans.pdf

However, given your comments, it seems most probable that a judgment has already been obtained & they're using a collection agency to recover the money. Judgments effectively have no limitation period since they can be renewed indefinitely.

Prior to any court action, the federal portion of the loan's limitation period can be renewed following the its expiry by one of the 4 triggers contained in Sections 16.2(6) and Section 16.7 of the Canada Student Assistance Act of 1994. It seems doubtful the seizure of a bank account or the withholding of a tax refund would qualify as an acknowledgment because it's essentially an enforcement.

http://laws-lois.justice.gc.ca/eng/acts/S-22.7/FullText.html

You can also see that as per the British Columbia Financial Administration Act, Section 38, they can continue to offset any money they claim is owed.

http://www.bclaws.ca/EPLibraries/bclaws_new/document/ID/freeside/00_96138_01#section38

As far as suing anyone for pain, lies, false threats and suffering.......well, that's pretty well the norm for all internal collection departments and external collection agencies,

You really should clarify this matter by getting some legal help. I think you need to do more than write into a forum at this stage. I can't believe you've left this 300 pound monkey stay on your back so long.

hmmm you really got me thinking now. Its been so many years its difficult to keep all the facts straight. You are correct about all your questions. The loans are defaulted as I have been paying 11% interest on them for years. The only thinking I may have missed is that the motion they did in court was for a judgement instead of garnishing wages. To me this means the same thing. But now that I think about it I do recall something about a judgement.

Thank you for your well detailed response but there are still some unanswered questions that need further clarification.

In 1991, you took out 2 student loans under the Canada Student Loans Act. One loan was a Federal loan GUARANTEED by the Federal government and one was a Provincial loan GUARANTEED by the BC government. While both loans were initially issued by the Toronto-Dominion Bank and subsequently transferred to the Bank of Nova Scotia, the agreement that the Toronto-Dominion Bank signed pursuant to the Canada Student Loans Act was that in the event the debtor defaulted on repayment of either or both of these loans, the Federal and/or the BC governments would reimburse the lending institution ( i.e. originally the Toronto-Dominion Bank, now the Bank of Nova Scotia ) and the defaulted loans would subsequently be transfered to either the Federal government or the BC government for collection.

If the Federal loan was transferred, it would be sent to the National Student Loans Service Centre and if the BC loan was transferred, it would be sent to StudentAid BC.

If you defaulted on either or both of these loans, why are you still paying the Bank of Nova Scotia $600 each month? And why would ARC or any other collection agency be collecting money on behalf of the Bank of Nova Scotia when these loans are GUARANTEED by both the Federal and BC governments? And why would ARC file a Motion to garnish your wages without first having to obtain a judgment? And why would the Bank of Nova Scotia commence an action to obtain a judgment on defaulted student loans that are GUARANTEED by both the Federal and BC governments?

Either I'm missing something here or this jigsaw puzzle is missing some key pieces.

Please enlighten me as to what is really going on. Based on the facts as you have presented them, this situation makes no sense.

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Educating one Consumer at a time

Accounts recovery IN Burnaby BC on behalf of the bank of Nova Scotia filed a motion to garnish my wages approximately three years ago. Exact date not known at this time. IN 1991 I took out a BC and Canada student loan from bank of Toronto Dominion. In about 1995 TD bank got rid of student loans and i was forced to continue them thru bank of nova scotia. When I was talking about creditors it was one specific company but multiple sources from that company harassed me for a couple years. After they made a motion to take the loans to court I went and saw a lawyer who told me there is no statue of limitations on loans and I should settle with the bank so I agreed to write a letter to the Bank of Nova Scotia stating I would pay $600 a month on both loans. the cheques and letter have been addressed to Bank of Nova Scotia ad I refused to give the accounts recovery any money. I even tried contacting the Bank of Nova Scotia and they said once the loans goes to the creditors they no longer deal with the loans. I Have been trying for several years to reach a settlement on these loans and this company will not act in good faith. Last year they told me I had $5000 left in interest to pay off. This year thinking most of that was paid off I asked them how much was left and they told me just over $5000. So I have been trying to reach a settlement, two weeks ago I asked for a settlement amount and they said they would strongly recommend 50 cents on the dollar and the bank would probably take $12000. Well yesterday I contacted them and they said there was still over $31000 left on the loan and the bank of Nova Scotia has a strict policy they will not settle for anything less then 80 cents on the dollar. Same guy different story. Its been continuously lies over the years and I just don't want to deal with this company anymore, I have asked them who the contact is to settle the loan and I have a feeling there is no one. I believe they have bought the loan but I can't prove anything. I have been making the $600 payments up until last month when I got married and had my first child. I have told them I need to wait 6 months before I can re-access my financial situation. thanks for your reponse.

Who filed the Motion in court? When was it filed? What did the Motion ask the court to do?

The student loan that you received in 1991, was this a B.C. Provincial loan or a Federal loan issued under the Canada Student Loans Act?

Quote "...approximately 3 years ago the Bank of Nova Scotia had creditors come make a claim for it and filed a motion in court."

Who are these creditors? Notice, you stated more than one creditor.

Quote "I ended up signing a letter stating I would repay $600 a month out of court."

To whom did you give this letter? To whom did you make your payments? Are you still making payments of $600 a month?

With answers to these questions, I can begin to start to "shed some light" on your situation. Depending on your answers, I may need to ask additional questions.

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Educating one Consumer at a time