[rriggi]

This seems pretty backwards but is worth a read...

Have unpaid student loans? Proposed law wants you to pay up, or risk being denied drivers licence (http://www.vancouversun.com/business/Have+unpaid+student+loans+Proposed+wants+risk+losi ng+drivers/10846214/story.html)

VICTORIA — British Columbians who ignore repayment of their student loans could find themselves unable to get a drivers licence or insure their vehicle, under a new bill introduced in the legislature Thursday.

Finance Minister Mike de Jong said the proposed law is intended to help government collect some of the debts owed, including an existing $185 million in outstanding student loans, as well as fines for other infractions such as illegal hunting and pollution.

“For folks that graduate and get a job and are working and decide they just don’t want to take their obligation to repay their student loan seriously, this would be a mechanism to remind them on a fairly regular basis they need to honour that obligation,” said de Jong.

The changes mean that the Insurance Corp. of B.C. could refuse to renew or issue a drivers licence if the government flagged a person’s debt for repayment. Vehicle registration and insurance could also be denied.

“It’s a collection tool,” de Jong said of bringing ICBC into the debt collection process.

“Candidly, it’s one of the few touch points that bring people into regular and predictable contact with the state.”

Government only collected $17.3 million of the $185.5 million in outstanding student debt in 2013/14.

By linking that debt to a drivers licence, the government estimates it can increase the amount paid by up to an additional $3 million annually.

Of $11.6 million in outstanding “court fees” for things like pollution infractions, hunting and other provincial fines, the government only collected $500,000 in 2013/14.

ICBC can already refuse to issue or renew a licence if a person has not paid their driver penalty points, Autoplan insurance, TransLink fare evasion fines, bridge tolls, impaired driving fines, or motor vehicle tickets for speeding or unsafe driving. Failure to pay fines resulting from convictions under the Criminal Code or nearly a dozen other acts can also trigger a refusal from ICBC.

Fathers or mothers who are not honouring their court-ordered child or spousal support payments in this or other provinces may also find themselves unable to renew their drivers licence or insure their vehicle.

Zachary Crispin, chairman of the Canadian Federation of Students B.C., said denying a licence due to unpaid student loans is “an unreasonable move” that would not resolve student debt issues.

“I certainly don’t think it’s fair,” he said. “It doesn’t matter if you are gainfully employed. There are a number of reasons why you may have difficulty paying off a loan ... the end result of this is people are going to lose their jobs because they’re going to lose their drivers licences.”

Crispin said the fact that there is so much unpaid student debt in the province indicates people are having a hard time paying their loans.

“We have the highest rate of interest on student loans of any province in the country,” he said, adding that Victoria could have chosen to put this year’s budget surplus toward covering interest payments for students or helping make education more financially accessible.

Students in B.C. pay prime rate plus 2.5 per cent interest on their loans, according to the Ministry of Advanced Education. This province is tied with the Government of Canada and New Brunswick for charging the highest student loan rate in the country, according to the ministry.

De Jong said ICBC won’t become involved if a student or graduate is honouring a repayment plan or needs hardship assistance.

“Most people would agree in the case of student debt, if you are out there working and have a job, and if you borrowed for your degree $20,000 or $25,000 … you go to work and you should start to pay your loan back,” he said. “If you encounter difficulty or get laid off, there’s a provision for relief.”

The “refuse-to-issue” provision would apply to students whose loan accounts have been out of good standing for more than a year, according to the Ministry of Finance, and anyone facing a refusal must be given 30 days notice and a chance to provide information that they cannot make their payments due to financial hardship.

Unpaid court fines more than 120 days overdue could also be subject to the measure, according to the ministry.


ICBC is slowly becoming a collection agency..

[BoostedBB6]

ICBC has always been a collection agency, only thing that's changing is that they now collect for other branches of government and private companies.

Soon if you have any overdue book fees at the library you wont be able to renew. Then you will need to that library and pay the fee before you can go back to ICBC to renew.......what a joke.

[hchang]

Makes sense since the government makes huge coin off student loan interest.

This would be a good way to protect their interests.

[underscore]

While is seems like a crappy way to collect, they need to do SOMETHING to get people to pay up.

[91civicZC]

Ugh, I’m of two minds here.

Giving government agency’s more power to take from people is not the direction I would like to see us going. A driver licence shouldn't be connected to your child support payments or your student loans. I would rather see less government hands in pockets than more.

BUT

People not paying student loans eventually means government money being lost. That means I’m paying for someone to go to school, while people like my wife and a majority of others worked hard to pay off their loans. I’m never a fan of people who exploit the system while those who play by the rules get screwed.

Unfortunately I lean towards the “serves them right, time to pay it off” camp, although I really wish I wasn't as it gives governments more power. If everyone had to play by the same rules, it would make things easier on everyone, not a select few who decide they don’t have to.

In the end, this also points that education here and in North America in general is too damn expensive.

[quasi]

I'm a little torn here as well, as someone who pays every damm penny he owes back it pisses me off when there are people out there who abuse the system costing those who play by the rules more money. That said I understand not issuing a license for unpaid tickets but I don't know if it's right to hold it back for other debts totally not related. They need a better way to collect the debts I just don't know if this is the right one.

[murd0c]

I'm ok with it, too many people are not paying back student loans and using the money for something besides school why not use ICBC as a scape goat to get the money back. Shit I have to pay bridge tolls in time and if you want to borrow money from our government make arrangement's to pay it back and not say fuck it.

[Tone Loc]

So... the BC gov't wants student loan money, plus interest, back. That is fair.

BUT in order to get people to start paying up, they are taking away your access to a drivers' license and car insurance. In many jobs, especially most trades, a drivers' license is a requirement of employment. To take one away would severely limit one's job qualifications in many vocations. Not to mention makes it difficult for people who don't have much access to transit to even get to work in the first place. So essentially, BC is saying... we want you to work so you can pay us, but we're going to make it harder than it already is to find a job by taking away the one of the most important non-degree credentials one can have AND make it harder for you to commute to a job site...

What kind of fail logic is that?!

[RRxtar]

So... the BC gov't wants student loan money, plus interest, back. That is fair.

BUT in order to get people to start paying up, they are taking away your access to a drivers' license and car insurance. In many jobs, especially most trades, a drivers' license is a requirement of employment. To take one away would severely limit one's job qualifications in many vocations. Not to mention makes it difficult for people who don't have much access to transit to even get to work in the first place. So essentially, BC is saying... we want you to work so you can pay us, but we're going to make it harder than it already is to find a job by taking away the one of the most important non-degree credentials one can have AND make it harder for you to commute to a job site...

What kind of fail logic is that?!
easy. don't pretend to be the victim when you made the choice to not pay your student loans.

or hey, if you can't afford to pay your student loans, which are a contract you agreed to, and are required to pay. you dont get the privilege of choosing where you spend your money by insuring a car instead of paying the loan.


you cant tell the bank you're not paying your mortgage until you feel like it because you want to go traveling instead. grow up, and deal with adult life.

[Speed2K]

No joke, when I was at UBC I new people that would take out student loans because they thought the government would forgive their loans after they graduate. I could only smh. :rukidding::failed:

[Tone Loc]

easy. don't pretend to be the victim when you made the choice to not pay your student loans.

I'm not saying these people are victims. No doubt they need a good reality check and some aggressive tactics. I personally am taking school "slow" so I can work part time to pay for school instead of taking out loans. Considering how stagnant our job market is right now, I don't understand everyone's rush to graduate with zero work experience. Plus, I hate debt.

But this "plan" is incredibly counterintuitive. Making it harder for people to find work isn't going to help said people scrounge up the money to pay back their loans.

It's like you telling me to go catch some fish to feed the both of us and then breaking my fishing rod in half. Is it doable? Yes... but at the end of the day it makes no sense.

[Geoc]

So... the BC gov't wants student loan money, plus interest, back. That is fair.

BUT in order to get people to start paying up, they are taking away your access to a drivers' license and car insurance. In many jobs, especially most trades, a drivers' license is a requirement of employment. To take one away would severely limit one's job qualifications in many vocations. Not to mention makes it difficult for people who don't have much access to transit to even get to work in the first place. So essentially, BC is saying... we want you to work so you can pay us, but we're going to make it harder than it already is to find a job by taking away the one of the most important non-degree credentials one can have AND make it harder for you to commute to a job site...

What kind of fail logic is that?!

I was intending to stay away from this discussion, but what you said is an outright farse and false information.

If you don't have a substantial source of income, the student loan assistance program will allow you to defer your payment while freezing the interest.

So if you are unable to pay it you will still be able to renew whatever it is you need with ICBC.

There is already infrastructure available to help people with their loans. If you are too lazy to fill out the damn forms, or you just don't want to pay the loans, then you're going to face the consequences.

[iEatClams]

easy. don't pretend to be the victim when you made the choice to not pay your student loans.

amen.

student loans minimum payments are pretty low as it is, plus you can claim a tax credit on the interest. STOP MAKING EXCUSES AND PAY UP!

[Tone Loc]

I was intending to stay away from this discussion, but what you said is an outright farse and false information.

If you don't have a substantial source of income, the student loan assistance program will allow you to defer your payment while freezing the interest.

So if you are unable to pay it you will still be able to renew whatever it is you need with ICBC.

There is already infrastructure available to help people with their loans. If you are too lazy to fill out the damn forms, or you just don't want to pay the loans, then you're going to face the consequences.

De Jong said ICBC won’t become involved if a student or graduate is honouring a repayment plan or needs hardship assistance.


My bad. You're correct, I didn't read the full article... I quick reacted and assumed that even people who couldn't find work were in danger of losing their license. But people who have means to pay their loans but - for whatever reason - don't, they deserve whatever's coming to them IMO.

[snails]

like many here im a little torn..

on one hand.. you spent the money on your education and you owe it.. so pay up? makes sense

on the other hand. not everyone may have the same privileges as others. i for example didnt do post secondary as i was on my own working full time since i was 16/17 (not my choice) so if i was to take out a student loan, get my education, maybe find a good job but may find a shitty job that hardly covered living expenses.. well it would be a little difficult to pay back my loan in a time sensitive fashion.. so making it hard to get a licence would only dig the hole deeper.

something a LOT of people dont consider is the advantages/disadvantages some may have and also some of the situations people may be put in at no fault of their own with no one to help. im not saying its an excuse. of course people shouldnt wasting money on extravagant things while in debt, thats just silly. but to ask someone to give up many basic comforts/necessities to cover a debt is a little heavy as well.

driving a vehicle may be a privileged but its not like its a gift. the whole process is heavily taxed and licenced. with todays average annual driving being approx 30k a year its almost a necessity

taking a crutch from a man with a broken leg wont help it heal any faster..

but.. assuming said person has completly ditched the idea of paying back the debt and assumes there is no consequence then of course there needs to be some repercussion

[StylinRed]

student loans are consolidated as national/federal loans now aren't they? if that's true the provincial govt. (icbc) couldn't force collection due to separation of powers...

suppose i could do a google search, but whatev :P

[Ludepower]

If you have debts....man up and own up to it. Don't run and hide finding loopholes.

Goin through ICBC is wrong...opens up a can of worms..cell phone and bc hydo companies are next to collect using ICBC?

[inv4zn]

How does one "not pay" student loans??

If you're having financial hardships, you can send them proof, and they'll defer your payments or make them on your behalf (not sure about the last one), and this can go on "indefinitely" as long as you continue to provide proof.

I didn't even realize it was possible to simply not pay...smh. You can also change your payment plans to reduce the monthly amount, if I recall.

The retards I saw in school that treated student loans as free money from the gov't made me question the entire premise of going to post-secondary...the sheer number of fucknuts in university is staggering.

[wingies]

Federal government writes off almost $300-million more in student loans | National Post (http://news.nationalpost.com/2015/02/19/federal-government-writes-off-almost-300-million-more-in-student-loans/)

This is bound to get alot more of you pissed off. I was fuming when I saw this, I work my ass off to pay back my student loans and I also didnt know that it was an option that you "didnt have to pay" back your loans.

Too many people I knew in university got student loans cuz their parents were overseas so it seems like they were low income, and then used the money to mod their cars.

[StylinRed]

misuse of student loans is an issue but writing off bad debts/loans isn't

I'm on the side that feels the gov't. should pay for post secondary education, like many European, and other, countries do
It would only benefit the nation in the long run, and we should be able to afford it as comparable countries can do so + provide many other social programs

[sdubfid]

most of the baristas I know don't even have a license so this wont affect them

[hchang]

most of the baristas I know don't even have a license so this wont affect them

hahahahahaha

first post ever on rs I wish I could thank more than once

[zulutango]

We used to call them "stereo system and party" loans. That's where most of the $$ went at my university dorm.

[BillyBishop]

student loans are consolidated as national/federal loans now aren't they? if that's true the provincial govt. (icbc) couldn't force collection due to separation of powers...

suppose i could do a google search, but whatev :P

I think that only the application process has been consolidated, ie one application makes you eligible for both. The amount received is still separated into federal and provincial portions.

[Jmac]

If it means they reduce the student loan interest rate and put more money back into education, I'm all for it ... But we all know it won't...

[tgill]

I think that only the application process has been consolidated, ie one application makes you eligible for both. The amount received is still separated into federal and provincial portions.
AFAIK any accounts that were active in September 2011 were consolidated into a joint "Canada-British Columbia Integrated Student Loan", how this affects this bill I have no idea. I'm not entirely sure the legality of this entire thing as StudentAidBC still delineates between BC and Canada Student Loans. However after the 2011 consolidation of my active account, all payments are made through the Federal NSLSC.

I would suspect this is irrelevant anyways as a majority of Student Loans in default are likely from years prior to the consolidation. However, this is quite interesting.

This is a total of your combined Canada and B.C. loans authorized by StudentAid BC and does not reflect any loans not cashed or payments you may have made. For information on the amount you owe on your Canada – B.C. integrated student loan account, contact the National Student Loans Service Centre.

[Jmac]

I was on a post September 2011 student loan from May 2014 to when I paid it off late last year.

It's a monthly payment taken directly out of your bank account.

[spideyv2]

ITT: People try to defend those who abuse the system.

[flagella]

lol, I'm not torn in any way. If you owe money that you promised to pay, then simply pay the fuck up or don't drive. There may be a few rare cases where people after graduation are struggling to meet ends meet and would perhaps require an alternative payment schedule, but I guarantee you that majority are just wasting their $ on gadgets and being lazy asses. Gotta love this idle generation that love to claim victimization status. Spoiled as fuck.

[Y2K_o__o]

I don't understand the how effective this execution would be.

1) If one borrows student loan, doesn't he need to have a guarantor to back-up the debt?
2) if one decides to leave the country without paying the loan, he doesn't even need to renew his driver's license

[bing]

In the end, this also points that education here and in North America in general is too damn expensive.

We live in Canada where education is highly subsidized. Just ask what a foreign student pays. Also, tuition prices vary by province and regions such as Quebec are like 2/3's of what they are in BC.

Tuition only seems expensive if you live on your own and have to cover living expenses as well. Harder, but definitely doable depending how motivated you are. Since most people aren't, they will find it tough. I know countless stories of people who made it through university with graduate degrees who didn't come from wealthy families but financed it by loans, working, and scholarships. Their work ethic is second to none.

[Mr.HappySilp]

I'm not saying these people are victims. No doubt they need a good reality check and some aggressive tactics. I personally am taking school "slow" so I can work part time to pay for school instead of taking out loans. Considering how stagnant our job market is right now, I don't understand everyone's rush to graduate with zero work experience. Plus, I hate debt.

But this "plan" is incredibly counterintuitive. Making it harder for people to find work isn't going to help said people scrounge up the money to pay back their loans.

It's like you telling me to go catch some fish to feed the both of us and then breaking my fishing rod in half. Is it doable? Yes... but at the end of the day it makes no sense.

If you pay your loan on time then you will be fine. Also if you can't find a job to pay your loans right away all you have to do is call up student loan and tell them "Hey I don't have job now can I start paying my loans 6 months later?" They will defer the date for sure. Sure they still charge you interest on it but hey at least you don't have to pay and keep your liscense.

Once you get a job then start paying up. Why should people who play by the rules get screw? I pay back every penny I owe to student loans + interest. In fact during my first few years of graduate all my money goes to food, rent and student loan. Paid it all off in 1.5 years to avoid paying the gov more interest.

[RRxtar]

It's like you telling me to go catch some fish to feed the both of us and then breaking my fishing rod in half. Is it doable? Yes... but at the end of the day it makes no sense.
No, its like me selling you a fishing rod so you can lean how to fish but telling you that you need to pay me 1 fish for every 2 fish you catch until you pay for the fishing rod. But instead you keep both fish and trade one of the fish for a fart pipe for your civic.

And after me continually asking you to give me my fish, and trying to make arrangements with you to only pay me half a fish instead of a whole fish, or look for some assurance that I might get my fish in the future, I get fed up with not getting any fish, and tell my buddy at the gas bar that hes not allowed to sell you any gas until I get the fish you owe me.

[RS_Pat]

The government should just garnish their wages or take the money out of tax refunds and such?

[underscore]

Does anyone know if their credit is affected when the loans get written off?

on the other hand. not everyone may have the same privileges as others. i for example didnt do post secondary as i was on my own working full time since i was 16/17 (not my choice) so if i was to take out a student loan, get my education, maybe find a good job but may find a shitty job that hardly covered living expenses.. well it would be a little difficult to pay back my loan in a time sensitive fashion.. so making it hard to get a licence would only dig the hole deeper.

If you're having a hard time paying back the loans you can contact them and work out changes to your repayment schedule, you'd only have it come up at ICBC if you aren't making payments and haven't bothered to make alternative arrangements.

misuse of student loans is an issue but writing off bad debts/loans isn't

I'm on the side that feels the gov't. should pay for post secondary education, like many European, and other, countries do
It would only benefit the nation in the long run, and we should be able to afford it as comparable countries can do so + provide many other social programs

If they do pay for it, I feel like their need to be more restrictions on it. For starters the money should go straight to the school, not the dumbass who wants the money to do a motor swap. They'd also need to set it up so that if people change their mind and don't complete a program, or change programs partway through, they have to repay the wasted cost unless they go back and finish within X years. The number of people who bail out of programs or take useless ones would waste a huge amount of money that the gov't shouldn't pay.

[flagella]

FunkyColdMedina just doesn't seem to get it with his fucked up logic.

[GGnoRE]

Does anyone know if their credit is affected when the loans get written off?


Even if you are late for a single monthly payment, your credit score will be affected like a late credit card payment.

This is why I wonder how effective this policy will be. If you are willing to drive your credit score to the ground over 100~200 per month, I don't think this is going to convince them to start paying.

[Timpo]

oh shit what if the person is actually having a financial difficulty?
the bad thing about Canadian student loan is that it can't be eliminated by filing bankruptcy.

and taking license away is a bad idea since a lot of people need a license for their jobs.

[Timpo]

and not to mention University Degree is a new High School Diploma.

It's not like back in the day, if you had a University Degree, somebody will hire you and you will have a successful life.

[DSHDSH]

I don't think ICBC, as a company, is reliable enough to handle another database for tracking and collection. This is based on my personal experience with ICBC. I am not sure what the specific problem is logistically, but they have made numerous mistakes in the past specifically with the bill that I have to pay or the exact amount of insurance discount that I was eligible for. My feeling is that the discrepancy usually comes from the software side of things. It seems to me that the software they commissioned is full of bugs and there really isn't any kind of accountability on their software lifecycle.

[underscore]

oh shit what if the person is actually having a financial difficulty?
the bad thing about Canadian student loan is that it can't be eliminated by filing bankruptcy.

and taking license away is a bad idea since a lot of people need a license for their jobs.

Are you too lazy to read ANYTHING, or just plain stupid?

[van_city23]

I don't understand the how effective this execution would be.

1) If one borrows student loan, doesn't he need to have a guarantor to back-up the debt?
2) if one decides to leave the country without paying the loan, he doesn't even need to renew his driver's license

You don't need a guarantor for a government student load. You need one for a education line of credit from a bank unless you're in a program like med school, law school, dentistry, etc.

And your 2nd point, yah he'll be free of having to pay it back if that is the case

[Timpo]

You don't need a guarantor for a government student load. You need one for a education line of credit from a bank unless you're in a program like med school, law school, dentistry, etc.

And your 2nd point, yah he'll be free of having to pay it back if that is the case

oh shit son, I've seen so many university students going back to their country after grad.

[zulutango]

So,...do you know the correct way to address someone with an Arts degree...with majors in polysci, women's studies and philosophy???....."Yes I will supersize that order". :woot2:

[Timpo]

ICBC to collect unpaid student loans? | Watch News Videos Online (http://globalnews.ca/video/1856254/icbc-to-collect-unpaid-student-loans)

[Timpo]

duhh...

ICBC (http://www.icbccorruption.com/)
End ICBC Monopoly (http://icbcmonopoly.com/)

[twitchyzero]

let it stain your credit history and may be affect your academic records like when you're caught lending/selling your u-pass but it should be penalized solely in educational affairs and not affect your driving privileges

You don't need a guarantor for a government student load

incorrect? at least not the case few years back.

[tiger_handheld]

Actually it's not a bad idea - support it 100% as long as it does not increase the Admin costs for ICBC which will increase my premiums.

People do what is inspected not what is expected.

[Timpo]

Actually it's not a bad idea - support it 100% as long as it does not increase the Admin costs for ICBC which will increase my premiums.

People do what is inspected not what is expected.

it's not that simple, more people lose their license, which means more people lose their jobs. Less tax income for government & more people go on welfare, it's just gonna cost tax payer more money.

[Special K]

If you have debts....man up and own up to it. Don't run and hide finding loopholes.

Goin through ICBC is wrong...opens up a can of worms..cell phone and bc hydo companies are next to collect using ICBC?

Good idea. Don't pay student loans = no BC Hydro service. :whistle:

I tend to agree with this policy. DL is a previlige, not a right. It seems to be a reasonable deterrent for those living in BC.

[inv4zn]

it's not that simple, more people lose their license, which means more people lose their jobs. Less tax income for government & more people go on welfare, it's just gonna cost tax payer more money.

Fuck that. If you're unethical enough to just "not pay", then whatever job you have that requires a driving license isn't warranted.

If you got your job with your degree, then pay them back. The payments aren't ridiculous either - if you're making a decent salary (since you're a grad), and it's not terribly difficult. As mentioned, you can also defer payments, etc, if you're having financial hardship.

I hate ICBC (their greed, their drive for profit, etc.) as much as the next guy, but I also hate ignorant fucks who piggyback off of righteous people - these are the assholes who want everything they think they deserve, while not giving back anything, not even the bare minimum of what it means to be a functioning member of society.

[Timpo]

maybe government shouldn't be giving out student loan so easily.
people need to learn how to save money first, once they have money, go back to school.

people having hard time paying off what? $25,000-$30,000?
If you work your ass off, you might be able to save that much money in 1-3 years depending on what job you have.

so graduate high school, work hard, then go back to school.

[van_city23]

incorrect? at least not the case few years back.

I went through it recently. If you're not less than 4 years out of high school, then no parent info needed. If are less than 4, u have to put their details in but I'm certain they don't sign or take any responsibility. Do correct me if I'm wrong. I went through it 3 years ago.

[quasi]

maybe government shouldn't be giving out student loan so easily.


Do they give them out that easy? When I went back to school in 2000 I couldn't get a student loan because I was still working and they said I made to much money. I had to go to the bank and get a line of credit so I could go work during the morning/early afternoon and go to school late afternoon/nights, I did that for 2 years full years.

[Jmac]

maybe government shouldn't be giving out student loan so easily.
people need to learn how to save money first, once they have money, go back to school.

people having hard time paying off what? $25,000-$30,000?
If you work your ass off, you might be able to save that much money in 1-3 years depending on what job you have.

so graduate high school, work hard, then go back to school.
How many high school grads are saving $8.3k-$30k/year fresh out of school?

Most would be working for near minimum wage.

[inv4zn]

Do they give them out that easy? When I went back to school in 2000 I couldn't get a student loan because I was still working and they said I made to much money. I had to go to the bank and get a line of credit so I could go work during the morning/early afternoon and go to school late afternoon/nights, I did that for 2 years full years.

They check bank statements for you and your parents, and if they have any RESP's, etc. They also check to see if you have any assets under your name (car, mainly) that you can sell.

But what some chumps will do is they'll "fake" poverty just so they can get a big loan, even though they have the cash. :suspicious:

[Timpo]

They check bank statements for you and your parents, and if they have any RESP's, etc. They also check to see if you have any assets under your name (car, mainly) that you can sell.

But what some chumps will do is they'll "fake" poverty just so they can get a big loan, even though they have the cash. :suspicious:

why would you "fake" poverty to get a loan?

I heard some dishonest people fake poverty to get a welfare, but for loan, you have to pay back with interest. At least that's the premise.

[flagella]

Ever heard of time value of money? If I can borrow $40,000 now to invest, and only to pay back without any interest later as soon as I graduate, of course I would obtain the loan. The interest only start to accumulate after 6 months of graduation IIRC.

[bananana]

I hope I'm not too late to join the discussion.

I kind of understand where the Government and this proposed bill is coming from, as people escaping their student loans is costing us taxpayers a ton of money. But with most any new legislation, presidence needs to be carefully considered. It's always a slippery slope with these kinds of things.

I absolutely cannot agree with unnecessarily giving more power to our Government.

Yes, I get that driving is a privilege but considering our transit system, it is also a necessity. You simply cannot get around (with any efficiency anyways) with our low population density and our inversely large geographic area.

ICBC as a mechanism is not designed for this and would need to revamp their internal infrastructure, or at least add some sort of new department -- for which enforcing student loan payback, logically -- for any for-profit corporation, Government run or not, could only be the first step.

Politically, student loan debt-payback is obviously something easy to rally for, especially since most of us have had to or are still paying back ours. This is a fairly logical position to argue this type of legislation.

But it's too much of a stretch. If they were to consider not giving out passports maybe, just maybe -- and it's a pretty small maybe, I'd agree, but ICBC is an insurance company, simple as that. This is not a mechanism for punishment or enforcing miscellaneous Government debts.

I'm totally against this proposed methodology and I think everyone should be against such an erosion of our freedoms as well.

[Mr.HappySilp]

^^ If they can't even pay their debt, they have no business to get a car or get insurance for it.

I am all for it. The only way to actually make people start paying is to hurt them where it hurts.

[underscore]

I absolutely cannot agree with unnecessarily giving more power to our Government.

I have a hard time considering it unnecessary when over 90% of the loans aren't being paid back.

Yes, I get that driving is a privilege but considering our transit system, it is also a necessity. You simply cannot get around (with any efficiency anyways) with our low population density and our inversely large geographic area.

Then maybe people should think of that before they go skimping on their loan repayment. It's their own damn fault if they can't be bothered to ensure they have access to a privilege by either paying their loan or filling out some papers.

[bananana]

I have a hard time considering it unnecessary when over 90% of the loans aren't being paid back.



Then maybe people should think of that before they go skimping on their loan repayment. It's their own damn fault if they can't be bothered to ensure they have access to a privilege by either paying their loan or filling out some papers.


But it's too much of a stretch. If they were to consider not giving out passports maybe, just maybe -- and it's a pretty small maybe, I'd agree, but ICBC is an insurance company, simple as that. This is not a mechanism for punishment or enforcing miscellaneous Government debts.


I'm not against, in any way, a recovery mechanism for unpaid student loan debt. I'm against ICBC being used for this purpose.

[Klobbersaurus]

Yes, I get that driving is a privilege but considering our transit system, it is also a necessity. You simply cannot get around (with any efficiency anyways) with our low population density and our inversely large geographic area.


if a guy in detroit can walk 21 miles to work, these freeloaders can afford to wake up 2 hours early to get to work on time on our transit system

[bananana]

Another thing to add to the debate:

Currently, individuals with delinquent accounts (150-270 days past-due) of outstanding student loan debt are unable to receive tax returns, dividends from shares or receive lottery winnings without the money being first appropriated to the unpaid debt.

"When you default on the federal portion of your student loan, the Canada Revenue Agency (CRA) handles collections to retrieve the money owed to the Government of Canada. They can withhold your GST cheques or income tax refund and apply that amount to your defaulted debt..."
Source: What happens if you default on student loans (http://www.creditcards.ca/credit-card-news/what-happens-if-you-default-on-student-loan-1264.php)

Considering that it's almost impossible to not at the very least file a tax return, it's obvious that a large portion of this unpaid debt is coming from individuals that probably do not live in the country -- and would be unaffected by ICBC as a mechanism for enforcement.

[inv4zn]

Another thing to add to the debate:

Currently, individuals with outstanding student loan debt are unable to receive tax returns, dividends from shares or receive lottery winnings without the money being first appropriated to the unpaid debt.

Considering that it's almost impossible to not at the very least file a tax return, it's obvious that a large portion of this unpaid debt is coming from individuals that probably do not live in the country -- and would be unaffected by ICBC as a mechanism for enforcement.

I'm going to assume that by "outstanding" you mean in collection mode; I still have student loans in repayment and I receive tax returns just fine.

Also, you are not eligible for a student loan unless you're at least a Permanent Resident, if not a Citizen of Canada. So unless you're saying Canadians are defecting to other countries to not pay back their loan, provide proof that it's obvious that a large portion of this unpaid debt is coming from individuals that probably do not live in the country

[SpeedStars]

Talking about student loans, I had received one last year and was requested to pay after the end of my first year. I have yet to graduate and they said that if I chose not to pay they would tack on a 1.9% interest rate every month following the 30 day grace period after the end of my first year. I legit have no idea why I have to repay so early, but meh, the payments are only like $60 a month

[inv4zn]

Talking about student loans, I had received one last year and was requested to pay after the end of my first year. I have yet to graduate and they said that if I chose not to pay they would tack on a 1.9% interest rate every month following the 30 day grace period after the end of my first year. I legit have no idea why I have to repay so early, but meh, the payments are only like $60 a month

The grace period is 6 months, not 30 days. Also even if you don't get more loans, as long as you provide proof of enrollment, the grace period doesn't begin as far as I remember.

Also the interest rate is calculated at prime + %.

So, from everything you've said, it's either not a "Canada" student loan and rather a private one (through a bank or something), or the person you talked to really didn't like you lol

[underscore]

Another thing to add to the debate:

Currently, individuals with outstanding student loan debt are unable to receive tax returns, dividends from shares or receive lottery winnings without the money being first appropriated to the unpaid debt.

Considering that it's almost impossible to not at the very least file a tax return, it's obvious that a large portion of this unpaid debt is coming from individuals that probably do not live in the country -- and would be unaffected by ICBC as a mechanism for enforcement.

Those only work if the person would be getting a return, dividends, or lotto winnings. And even then, how many people are getting a significant enough return to make a dent in a loan worth tens of thousands of dollars?

[bananana]

I'm going to assume that by "outstanding" you mean in collection mode; I still have student loans in repayment and I receive tax returns just fine.

Also, you are not eligible for a student loan unless you're at least a Permanent Resident, if not a Citizen of Canada. So unless you're saying Canadians are defecting to other countries to not pay back their loan, provide proof that

You are in repayment. My post was regarding defaulted loans. Also, It is quite easy to receive Permanent Resident status -- who are eligible for student loans.

[bananana]

^^ If they can't even pay their debt, they have no business to get a car or get insurance for it.

I am all for it. The only way to actually make people start paying is to hurt them where it hurts.

Remember that we live in a forward-thinking country that believes in restorative justice. Of course this is far from a criminal justice issue, but this thinking is ingrained within all areas of our constitutional rights. This is the kind of research-backed thinking that elevates Canada above many other countries.

The Government is not tasked with the pursuit of petty revenge on behalf of angered citizens. Perhaps we should follow the example of Saudi Arabia and give 1000 lashes, or better yet, remove the hands of anyone caught defaulting on their loans?

I don't get where the fails are coming from but keep 'em coming. I'm not against finding methods of retrieving defaulted debts from the type of asshole that would default on paying back what would be considered an extremely generous assistance program. I finally paid back over $50,000 of student loans just last year. I'm just worried about an erosion of rights through this particular mechanism of enforcement.

[Tapioca]

^ That's a shitty analogy. We're hardly en route to a slippery slope that involves an invasion of privacy that is tantamount to punishment by decapitations.

I get the human capital aspect - it's important for a government to invest in its citizens. However, the government has to have some means of recovering the costs of that investment - whether it's through increased taxation, or recovering a loan that it has paid interest on.

It's tough for people who have attended post-secondary over the last 10 years. Costs have skyrocketed and the return on investment has shrunk for many programs (even if you went the trade route). On the other hand, I made it through university and my 20s with a shitty Honda and I lived at home for the duration of my post-secondary schooling. I got co-op jobs, worked part-time during school, got scholarships, and didn't have to take out any student loans. I still did stupid stuff that any 20-something does like getting drunk at the bar. It wasn't until the age of 28 that I finally bought a money pit of a car (i.e. A BMW). Some food for thought.

[Berzerker]

If people don't pay child support they get their wages garnished. Why does this not apply to student loans? Wouldn't wage garnishment be easier and more effective than using ICBC and giving them even more power over the populous than they already have?

Berz out.

[Mancini]

I don't like this kind of interconnectedness even if I agree that some collection measures need to be taken. This certainly isn't it.

How about ICBC withholding licensing for overdue library fees. Or for people late with their credit card payment.

[meowjinboo]

Canada Student Loan Rehabilitation - CanLearn (http://www.canlearn.ca/eng/loans_grants/repayment/help/rehabilitation.shtml)

I defaulted. I lost my job last year and was unemployed for about 6 months and went into some dark brooding avoidance.

Im back on track but this is useful to get your shit together.

[Inaii]

If people don't pay child support they get their wages garnished. Why does this not apply to student loans? Wouldn't wage garnishment be easier and more effective than using ICBC and giving them even more power over the populous than they already have?

Berz out.

They actually do get garnished. Just takes a lot longer and they have to have ignored CRA/Student Loan people for years (no contact whatsoever).

[Bouncing Bettys]

John Oliver's latest piece is somewhat relevant to this discussion when it comes to withholding licenses/insurance to pay fines.
https://youtu.be/0UjpmT5noto

[SuperChomely]

The government in Canada is almost becoming a little but socialist. We already have to go through ICBC if we want to drive here, but if they tie this into the bank it will more so draw power away from the citizen. As we have already seen with the major banks in Canada, if you want a mortgage you have to go through the big six, same with insurance, or loans.

But for the issue of the student loans having each institution operating separately from each other would be the best. If you don't pay your loans at first then they would send you more and more letter's, then if you still don't pay then people come to your house or something telling you, then the bank itself could start billing you or suspending service.