So what's the deal with Federal Student Loans?

[misa 2]

Hey Canucks!

I have only my Federal Student Loan left with CIBC. My Ontario one was paid off a few years ago.

I remember reading a few posts saying that if you move out of country, they'll penalise you or ask for the whole amount or something? I can't find my original loan papers (they're in storage) and they are years old. I got my loans from 1994-1998.

Anyway, as per usual, the jerkoffs* at CIBC think I didn't pay this month even though I did (I pay online each month, over the minimum required and am not on interest relief) so I need to call them. All my mail is forwarded to my sister's address in Ontario. Just was curious if I told them that I moved to the U.S. whether that would be detrimental to my "account" with them.

Thanks!

*They're jerkoffs because they totally screwed me up on my Ontario loan years ago.

Edited July 17, 2007 by misa

[Glady 0]

I have wondered about this many times myself and i have never been able to get any suitable answers. What happens if say you quit paying them. Beside ruining your credit what other outcomes will that have? Will it affect your US credit and so on? I plan to tell them i will be moving and if they demand it all them what the hell with them. I do not have 12 thousand cash for anyone anytime time soon so if the demand all then they will get nothing. If they are reasobale however i do plan on paying because it is a good system and i don't want to help ruin it for our younger generation.

[~Nini~ 2]

I know I have a student loan which is going to start building interest at the end of next month (yay for graduation!) and so I'll be giving NSLSC a call sometime this week to check on the itty bitty details as well. I intend to leave my RBC account open and pay my loans online through that account while wiring money into that account from the States.

As far as I know, I haven't heard about any penalties that incur if you switch your address - at the bottom there are a few phone numbers meant for where you're located. I can't say that means that you're alright, though...

I hope they're not intending to have the full amount all at once, otherwise I can't move post-interview.

Edited July 18, 2007 by Nini & Bee

[misa 2]

Not sure what will happen if you don't pay. You'd default on it and whenever you do go back to Canada, you'd get dinged for it. Even though the loans are through the bank, they can "return" it to the government (Federal or Provincial or both depending on what loans you have) and then the government will start collection proceedings against you. They'll catch you since they have your SIN on file and I have heard that can take you to court (not sure how plausible that is).

This is what happened when CIBC ###### up my Provincial (Ontario) loan. They returned it to the government saying that I defaulted even though I didn't! But once it was back with the Ontario government, it was too late. As far as CIBC was concerned, they closed my case. I was sent to collections and put through the wringer due to the bank's mistake. Paid it off though... so I just have my Federal.

Anyway, I called CIBC today and just gave them my sister's address in Ontario. I decided not to bother to change my address to my U.S. one.

[~Nini~ 2]

I just called the hotline for my federal student loan, and got a really nice lady on the phone. (Why can't we get people like that when we're calling USCIS/NVC/consulate?) She laughed when I told her that I was worried about being penalized for moving outside of Canada and assured me that I would not be required to pay off the entirety of my loan. She said that as long as NSLSC had the current address on file they would be able to mail me my loan repayment schedule and I could go ahead with making payments through my RBC account. Some good news for me and Galateia!

Poor misa, I'm sorry to hear about the government's mistake. Glad that it worked out though.

[mwinburn 0]

I just called the hotline for my federal student loan, and got a really nice lady on the phone. (Why can't we get people like that when we're calling USCIS/NVC/consulate?) She laughed when I told her that I was worried about being penalized for moving outside of Canada and assured me that I would not be required to pay off the entirety of my loan. She said that as long as NSLSC had the current address on file they would be able to mail me my loan repayment schedule and I could go ahead with making payments through my RBC account. Some good news for me and Galateia!

Poor misa, I'm sorry to hear about the government's mistake. Glad that it worked out though.

Heh, if we had to pay her loans in full before she could immigrate, we'd be defaulting. It's just not mathematically possible. I think the provinces realize this and know their best hopes of getting their money back are to let us continue to pay from abroad.

[misa 2]

Maybe it's when someone is on interest relief that they get screwed when they leave Canada? I know I read something from someone here about that but didn't remember the specifics.

And for all those that are with CIBC with any of your student loans, STAY ON TOP OF THEM! CIBC is notorious for screwing people over and returning the loans to the province which means it will go into collections. Once that happens they will not take it back. Even if it's through no fault of your own (like in my case -- they claimed the payment was "late" even though I had a RECEIPT dated the day before the due date and paid IN PERSON at a CIBC branch... they didn't care... told me "it's too late, file is already returned and closed". This also happened to a few friends of mine about 5 years back when it happened to me.

Some reported problems with CIBC: http://www.cfwgroup.ca/forum/viewforum.php...1c5b07c48b70943

Also if you're having problems with your loans, contact this group and they can guide you: http://www.cfwgroup.ca/content/view/15/44/

Thankfully I only have um... another 5-7 years to finish paying off this damn loan. It was single-handedly the worst decision I've ever made.

Edited July 18, 2007 by misa

[Mephys 2]

im still wondering about that.

I havent change my address yet with the bank and keep paying my monthly payments. I have heard that they may not ask you to pay the whole loan, but might increase the interests rate because you are out of the country...Heard that few months ago from someone else on VJ from Canada, not sure who or when.

I didnt bother to ask yet. I got about 3500 left so Im planning on paying it off as soon as I get a job here.

[misa 2]

im still wondering about that.

I havent change my address yet with the bank and keep paying my monthly payments. I have heard that they may not ask you to pay the whole loan, but might increase the interests rate because you are out of the country...Heard that few months ago from someone else on VJ from Canada, not sure who or when.

I didnt bother to ask yet. I got about 3500 left so Im planning on paying it off as soon as I get a job here.

Oh... $3,500 isn't bad at all. I think these loans have really been the bane of my existence... unlike most people, I got nothing out of my "higher education". Totally my own fault though.

It's probably not even worth it for you to change your address with them to your U.S. one since you're so close to paying it all off! The only thing that you'll need from them is before next year's taxes, the sheet saying how much interest you paid so you can write that off on your Canadian taxes. Maybe you can change it to your family's address in Canada?

[~Nini~ 2]

Maybe it's when someone is on interest relief that they get screwed when they leave Canada?

Yeah, misa. Interest relief is only eligible for those that are residing in Canada right now.

It was single-handedly the worst decision I've ever made.

Amen to that! *kicks student loan files*

[misa 2]

Amen to that! *kicks student loan files*

[Cassie 8]

Once you cease to be a resident of Canada, you lose certain opportunities with regards to Student Loans. Interest relief is one of them, as well as the loan forgiveness option (there's a fancy name for it, I just can't remember the official term). I had part of my loan "forgiven" after meeting certain requirements, but they rejected a second application after they found out I lived outside Canada, even though I lived in Canada during the year that they were looking at my finances.

I just set up an auto debit payment plan with my Canadian RBC account, and transfer money over to it every month to cover the payments. It's been working fine for me.

im still wondering about that.

I havent change my address yet with the bank and keep paying my monthly payments. I have heard that they may not ask you to pay the whole loan, but might increase the interests rate because you are out of the country...Heard that few months ago from someone else on VJ from Canada, not sure who or when.

I didnt bother to ask yet. I got about 3500 left so Im planning on paying it off as soon as I get a job here.

Oh... $3,500 isn't bad at all. I think these loans have really been the bane of my existence... unlike most people, I got nothing out of my "higher education". Totally my own fault though.

It's probably not even worth it for you to change your address with them to your U.S. one since you're so close to paying it all off! The only thing that you'll need from them is before next year's taxes, the sheet saying how much interest you paid so you can write that off on your Canadian taxes. Maybe you can change it to your family's address in Canada?

My Canadian bank account has my married name and current address on it, and I did not see any change in my interest rate. I do, however, have to pay off the whole loan!