[Marie928]

Hi-

I am an American married to a Canadian and living in Canada. I have had my US student loans on forbearance (I was unable to work when I first immigrated to Canada until I rec'd perm res status). My loans have nearly doubled due to the interest amounts.

I am willing to try to make an honest effort to repay my student loans, but the min. payment amounts are not affordable ($1200 US a month).

I have some questions:

1. Can my Canadian husband be held responsible (like it is in comm property law states in the US) eventhough we reside in Canada?

2. If I at least make an honest effort to make some amount of payment each month will they see that as good faith money and stop harassing me?

3. If I want to travel back & forth to the US and Canada will I ever get arrested at the border (I have heard this has happened, but want it verified). I am planning to reside in Canada for at least 5 more years, but we may chose to move back to the US-this concerns me since my US credit will suck now with these student loans growing in size daily. I do plan to travel at least twice a year to the US from Canada. I will be applying for my Canadian citizenship.


Thanks! :wink:

[aaron]

1. Can my Canadian husband be held responsible (like it is in comm property law states in the US) eventhough we reside in Canada?

No.

2. If I at least make an honest effort to make some amount of payment each month will they see that as good faith money and stop harassing me?

You would have to negotiate that with your lenders.

3. If I want to travel back & forth to the US and Canada will I ever get arrested at the border (I have heard this has happened, but want it verified).

A delinquent debt, in and of itself, will not cause you to be arrested.

[Marie928]

For your quick reply.

I had read (perhaps inaccurately) that once student loans go past delinquency they can be turned over to US Gov't agencies which can arrest or detain people during border crossings- I find this highly unlikely, but at the same time I am ignorant to the steps that are taken to secure unpaid student loan debt. I suppose if I am at least attempting to repay the debt I should be OK.

Thanks again!

[Johnny]

2. If I at least make an honest effort to make some amount of payment each month will they see that as good faith money and stop harassing me?

As long as you do owe the money, the lending sector, or any assigned third-party recovery agent will continue to communicate with you. This is to ensure that all urgency is being conveyed to you in order to achieve maximum and timely recovery.

If you are being harassed, that is against the law. You should report this to the Ministry in your province. You can find your provincial ministry information here:

http://www.cfwgroup.ca/content/view/32/76/

There are ways to deal with these types of problems. Bankruptcy, in most cases, is a forgone conclusion to common debt problems. Most people go bankrupt because they know of no other way. That is yet another problem that has grown out of control.

Best of luck and I hope things work out for you.

Johnny

[deleon]

Have you thoguht about consolidation? I know the interest rates are lower now then a few years past. This would at least lock your rates at a specific rate.

The person borrowing the Federal Stafford student loans is the only person responsible for them, so now your husband wouuld not be responsible.

How much studnet loans do you have? Nowadays you can consolidate for up to 30 years I believe. They have multiple repayment options, gradual repayment, pyaing less now and more later, etc.

I would def look into consolidation. I have 40,000 in student loans, I consolidated before the July 1, 2005 deadline (rates where going to increase after that time). My current rate is 2.875 over 20 years. I hate the thought of paying that much in interest, and i will pay more on that to bring the principle down.

One thing that works if your payment is due by the 25th of each month, try and pay the amount by the 1st instead (if possible). this alone will help by reducing the principle amount earlier. interest is usually based each day, so if you are paying it earlier then there will be less interest charged if that makes sense. Also always make sure when you do apply extra principle to make a note on the payment saying "please apply X amount towards principle balance." the lenders SHOULD already do that, but some lenders hold the additional money towards the next payment versus applying it immediately towards the principle balance. You want to get the prinicple balance down, so the interest will be lower.

If you are working see if your employer has a "loan forgiveness program". where they pay x amount towards your loan each year you work for them.