[catchburns]

I have student loans with the government of Canada but I am now attending school in the United States. I have attempted to inform them of my status as a current student but since I have no access to the form they require, they put my debt into repayment status. A couple of years have passed and I was just recently (within the last 4 months) informed that my debt was now long past overdue and sent to collections. I was sent no bills or statement saying that it was in repayment status up until this point. I have attempted to have my loan recalled but it was denied. I am now being constantly harassed by Total Credit Recovery Limited, the government's collection agency. Since I am still a full-time student, I feel that I have not violated the terms of my contract stating that I would repay the debt at a low interest rate after a 6-month grace period of quitting school. The collections agency has threatened to garnish my tax refunds and wages and continues to try to call me at least once a day. From what I understand, they are sending my collection to their litigation department. I am curious whether any of their actions can affect me here in the States. I am not concerned about my Canadian credit score or tax refund as I have no income there. I do believe that it is important to repay my debt in the terms of the contract I agreed to, and will do so, but am unable and refuse to repay it at this time.They have also threatened to contact my employer here for repayment? Is this possible or legal? Thanks for your help.

Stewart

[aaron]

They can register their judgment for enforcement, in accord with the laws of your state. You would have the opportunity to challenge the registration. If the judgment is successfully registered, it could be enforced as a valid debt under the laws of your state.

[deleon]

Your current school should have sent your full-time enrollment in a degree program to your other school. However, in many cases it is the students responsibilty not necessarily the registrars.

I'm not sure how it would work since it is a canadian loan. Generally speaking if you defaulted on a student loan in the states you would NEVER be eligible for another student loan until you were no longer in default. Which is only fair. I've had a number of students where they thought they filled out the paperwork etc and they didn't, now are in default. The problem is.. when you signed the promissary note all this informaiton on there. It is your responsibility ultimately. Yes the lenders should have sent you something. It is the students responsibiilty to keep the lenders up-to-date with addresses, contact information etc. I'm not trying to be rude or anything, but it boils down to that.

Always read the bottom line, before you sign the papers. We always had our students read the promissary note in front of us so that they could never say I didn't read it. Once your name is on there, you've agreed to the terms. So did you immediately go from one degre to another? (and to a different chool within the 6 months after graduating? If you graduated the max is 6 months grace. If you went back to another school after 6 months you shoudl have already been expecting to be in repayment and fill out forms for the school to send to your lenders.???

This is one of the reasons I am such an advocate for financial aid seminars. So many times students just think 'money money money and don't know all that it entails. I was responsible for over 650 students in my programs. I guarantee about 600 of them didn't understand nor wanted to understand the terms of the loans.

I hope it all works out. I would contact the lender and see if there was anyone who can help. I doubt they can do much for you now, but it would never hurt to get you back into current standing.