Canada Student Loans

[EmersonsBrooke 0]

Hi, fellow visa journeyers

I'm from Canada and recently married my American boy, and am now living in the US (AOS still pending).

I have quite a bit of student loan debt (Canadian and BC loans) which I've not started paying yet because I've been on interest relief. But they tell me I've used up my interest relief as of June 1 (maybe not, for my BC provincial loan), which means it's time to start making payments. Only problem is, I can't work in the US yet, so I can't afford it! My husband is supporting us both as it is, so him paying my loan payments on top of that would be a bit much. I could apply for extended interest relief or loan reduction -- IF I still resided in Canada. But I don't, and I've already informed all my lenders of my new location (that was probably stupid, but I didn't want to miss any mail, and don't really trust my flaky ex-roommate with forwarding it).

I'm wondering if anyone here has had this experience and knows the best thing to do in this situation. Are there any alternatives the lenders don't tell you about? Loopholes? If I were to default on my loans, would that screw my credit rating forever? I really don't want to give the government any more (politicians' vacation) money than I have to. I reeeally don't.

Consolidation is something I also know nothing about, but have heard that a lot of people do. Any pointers on that would be helpful as well. The more options I have to play around with, the better.

Thanks a bunch, in advance!

Brooke

[Fandango 1,439]

ooooh dear I hope this thread doesn't repeat itself again There was a similar discussion a while back that became quite heated.

Brooke, I have no clue what your best option is...but just fyi, the credit rating in Canada doesn't affect your US one. Now, what you plan to do with that, is your choice!

Edited May 9, 2006 by LisaD

[iceyspots 0]

I've heard student loan sharks are vicious, they will chase you in the jungle of africa to get their money... But I mean, if you don't have the money, there's not much control you have over the situation.. It'll take a while for them to go after you though, but not too too long... Just neck it out for a little bit and pay them back when you're able to, but make it a priorty above other things..

Hope this helps

Edited May 9, 2006 by iceyspots

[Canuck Carrie 1]

I don't think you can 'default' on your student loans, it's one of the things you can't file bankruptcy for.

[EmersonsBrooke 0]

...just fyi, the credit rating in Canada doesn't affect your US one. Now, what you plan to do with that, is your choice!

That was another question I meant to ask! Hmm.. if that's true, that helps. My new concern though, especially reading the other replies, is that my hubby might somehow be pulled into it. Could creditors come after HIM? could it effect HIS credit rating? And/or could my US credit rating be effected by creditors coming after me here? It's a lot closer than Africa... I'm scared...

[Cassie 8]

See here's your problem. Now that you no longer reside in Canada, the student loan people have their hands tied a bit and probably won't be able to help you out as much as they could had you called them up before you moved to the US. You can try calling them up and seeing what you can negotiate as far as payments are concerned. It never hurts to ask. If you two own an home, you can try using the equity in refinancing and using it to pay off the loan.

It's all well and good to say, "well, my credit rating doesn't follow me here to the States, I can default without fear of penalty", but what if in the future you have to move back to Canada for some unknown reason? Your credit will be screwed three ways to Sunday for a long time. It is this reason that I made plans before I moved to make sure that my payments were kept up to date, because I knew that there was a strong chance we would move back to Canada. Has it been hard? heck yes. Do I feel guilty that my husband has to help me pay back my debt, thereby making our budget really tight? Heck yes. Do I wish that I didn't HAVE to take this job that involves working the evening shift and cutting back on time with my hubby? Double heck yes. But it's gotta be done.

For the record, the government of Canada isn't giving you the money, Royal Bank and/or the lending institution dealing with BC provincial loans is the one you owe, so no politicians are touching the money, but bankers are, so it's six of one, half a dozen of the other.

[EmersonsBrooke 0]

I know what you're saying. I'm ready to accept doing whatever I have to do, I just want to be sure just what that is before I accept the first thing I'm *told* I have to do by the ones who want the money. Usually there are other options if you're insistent enough, and it helps to know going in what is possible and what isn't, so I can pick my battles accordingly.

I do actually owe the gov't directly as well as Royal bank. After August of.. I forget what year.. it all switched over from RBC to government-issued loans. I have three lenders to pay, therefore (that's why I'm also wondering about consolidation) - BC govt, Federal govt, and Royal bank. Weee!

I do really wish I'd dealt with this before I left Canada. Oh, hindsight...

I appreciate your input, everyone. Please keep me in mind if you come across or think of any other info that might apply to my situation. I'm very overwhelmed as to how to go about all this.

Thanks!

Brooke

[canucker18 0]

Hi Brooke, I am in a similar situation. I have LOADSA student loans with the Gov't.

I looked into it all before I moved too, but you had to get pay stubs from your employer for relief and that's hard to do if you aren't working.

A word to the wise too, scamming the gov't probably isn't a good thing. I thought about maybe "pretending" I was still in Canada but that bites you in the but later when it comes to taxes and filing as a non-resident.

You also can only pay your student loan from a Canadian bank account.

It all pretty much sucks. And what's worse is that just because you move out of Canada all of these options for repayment are taken away. For what reason I ask.

Anyways, I would say call back and speak to a supervisor. Ask them what happens if you can't pay? You don't have a job, they can't take your income. You have none.

Barring that I don't know who you would go to for help. I wondered the same thing. There must be a governing body that we could write to to explain the situation.

If you find one, let me know. I was wondering about local MP's but I think they are too far down on the food chain.

Right now, for me, I've budgetted enough to pay the loans out of a Canadian bank account until mid summer. I'm hoping after that I'll be able to work and can start to catch up.

I feel your pain, and you're not alone.

[ridley 0]

You also can only pay your student loan from a Canadian bank account.

It all pretty much sucks. And what's worse is that just because you move out of Canada all of these options for repayment are taken away. For what reason I ask.

Ugh, what a hassle. I'm about to marry myself into a pile of Canadian student loan debt as soon as my K-1 visa comes through. Luckily, (I'm the US citizen in our relationship) I've got a good job, and while it'll be tight for a while, I'll be able to assume the payments for his student loans until he gets a job and so forth. So... questions from those who know better than I do:

Can he keep his Canadian bank account when he leaves the country? Can I fill it from the U.S.? Can we do automatic drafts of payments?

[ceriserose 1]

Can he keep his Canadian bank account when he leaves the country? Can I fill it from the U.S.? Can we do automatic drafts of payments?

He can keep his Canadian bank account, but must let them know of his move to the US (give them the change of address). The bank informs the government (this has to do with non-resident taxation and the way you file income taxes for him in Canada once he moves).

I use an online trading system to transfer money from our account here in the US (where my paycheck goes) to my account in Canada to make payments. www.customhouse.com (I think...it's early still. I got the lead on that from flames9 on this forum, so if I've messed up, he'll be along to correct me. )

I don't know about the automatic drafts on the student loans...usually those are set up as pre-authorized payments. (I'm paying a credit card there, not student loans. I haven't had a student loan since the 80's so I'm sure they've changed the way they operate.)

[Cassie 8]

Can he keep his Canadian bank account when he leaves the country? Can I fill it from the U.S.? Can we do automatic drafts of payments?

He can keep his Canadian bank account, but must let them know of his move to the US (give them the change of address). The bank informs the government (this has to do with non-resident taxation and the way you file income taxes for him in Canada once he moves).

I use an online trading system to transfer money from our account here in the US (where my paycheck goes) to my account in Canada to make payments. www.customhouse.com (I think...it's early still. I got the lead on that from flames9 on this forum, so if I've messed up, he'll be along to correct me. )

I don't know about the automatic drafts on the student loans...usually those are set up as pre-authorized payments. (I'm paying a credit card there, not student loans. I haven't had a student loan since the 80's so I'm sure they've changed the way they operate.)

aye, my student loan payments are automatically taken out of my account on the 15th of every month. They used to be taken out on the 1st, but I had trouble paying them, so I called and arranged for the 15th. You can arrange to have them paid out separately or all on one day...they don't care, as long as they get their payment each month!

I use PayPal right now to transfer money, but Custom House is something I am looking into.

[Flames9_RN 358]

I use Custom house a fair bit. It is a great service. The excahnge rate wasnearly 2 cents better with CH than it was going to be with wachovia for $$$ exchange