What are some Canada student loan horror stories?

There are students who had their loans mismanaged by the lending institutions. For instance, a student's payment records were miscalculated. They were constantly harassed by collection agencies for payments they had already made or for amounts that were incorrect. This not only affected their financial situation but also their mental health. They had to spend a great deal of time and effort trying to prove the errors and get their loan situation straightened out.

One horror story is when students graduate with a huge amount of debt and can't find a job that pays enough to start paying it off. They end up in a cycle of debt and financial stress.

A student borrowed a substantial amount for a four - year degree. He thought he understood all the terms. However, when he started repaying, he realized that the interest rate was variable and had increased significantly. This made his monthly payments unaffordable. He tried to negotiate with the loan provider, but they were unresponsive. He had to cut back on basic necessities like food and housing just to keep up with the payments, which was a really horrible experience.

There are cases where the loan terms are very strict and confusing. Some lenders might have hidden fees. A student might think they are just paying back the principal and the stated interest, but then get hit with unexpected fees for things like early repayment or administrative costs. This can really throw off a student's financial planning.

There was a case where a person defaulted on their student loan. As a result, their tax refunds were seized year after year. This not only caused financial stress but also made it difficult for them to get out of debt as they were counting on those refunds to pay off other debts or save for emergencies. Moreover, it affected their credit score severely, leading to higher interest rates on any future borrowing, like when they wanted to buy a car or a house.

There was a case where the cosigner's credit was severely damaged. The borrower was constantly late on loan payments. Even though the cosigner tried to remind the borrower, it didn't help. Since the cosigner was linked to the loan, their credit score dropped significantly. This affected the cosigner's ability to get their own loans for things like buying a car or a house in the future. It was really a horrible situation for the cosigner.

Often, after loan rehabilitation, students might find it difficult to get approved for new credit or loans because of the previous loan history. Also, they might struggle to meet other financial goals like buying a house or starting a business due to the burden of past debts.

Well, I know of a student who studied abroad in Canada on a student loan. The cost of living was much higher than expected. The loan amount wasn't sufficient to cover all the expenses, so the student had to borrow more. When it was time to repay, the exchange rate fluctuations made the repayment amount much higher in their home currency. The student was in a real bind. They couldn't pay off the loan as quickly as they wanted, and the lender was constantly sending warning letters. This created a great deal of stress and anxiety for the student, who felt like they had made a huge mistake by taking on the loan in the first place.

Well, some of these stories might involve students getting scammed while taking out student loans. For example, there could be cases where the loan providers were not legitimate and the students were left with huge debts and no real education to show for it. Or perhaps a student got sick or had a family emergency during their studies and couldn't continue, but still had to pay back the full loan amount without any leniency from the lender. Another situation could be that the paperwork for the loan was so confusing that students unknowingly signed up for additional fees and charges that made their debt much worse.

Here's another. A student's family co - signed the loan. When the student couldn't pay, the lenders went after the family. The family, which was not well - off to begin with, had their assets at risk. It was a horrible situation where the whole family's financial stability was threatened because of the student loan.