Coalition Calls for Crackdown on Canadian Student Loan Collection

A new report released Tuesay by the Coalition for Student Loan Fairness says the Canada Student Loans Program (CSLP) is not meeting the minimum service expectations of many loan borrowers in repayment, and must implement substantive policy and operational reforms to restore confidence in the system.

Coalition spokesperson Julian Benedict says, "This report offers a balanced blueprint for fixing the student loan system at the same time that the federal government is planning an official review of the CSLP." Benedict explains that, in addition to incorporating the suggestions of student groups and education policymakers, the report’s recommendations also consider the views of 650 Canadian student loan borrowers.

In total, the report includes 26 specific recommendations to overhaul the CSLP, including a reduction in student loan interest, improvements to Interest Relief and Debt Reduction programs, a better dispute mechanism for escalated complaints, a crackdown on a busive collection agencies recovering defaulted loans, and improved hardship regulations for borrowers who become permanently disabled or deceased.

The report can be downloaded from the Coalition’s website, www.studentloanfairness.ca.