Feature

Student loans continued from cover

LOAN REMISSION is negotiated for each program year and can provide debt relief on BC loans to eligible students to a minimum of $18 500 (BCSL & CSL combined).

WORK STUDY PROGRAM gives money directly to universities and colleges to hire students whose assessed need is more than the maximum loan awarded.

Most students awarded loans should be eligible for any of the

happens and you get turned down, Patty Lewis advises that you come into Financial Aid immediately. “Everybody is an individual,” says Lewis, “what affects one student will be different from another.” According to Lewis, “Financial Aid Officers will check to see what costs haven't been considered, and whether the student has exhausted all possibilities. We need an angle to work from,” says Lewis, “often

making payments.

If you’re a returning student you'll need to file two forms with your bank—a schedule #2 and a certificate #2. Otherwise you risk having your loan flip into repay- ment status and being hassled with all kinds of extra paperwork. Even though filing a new loan should prevent this, it’s best not to take the chance. As Douglas Ombudsperson Ernest Jilg discov-

program outlined above, (how Financial Aid Officers candigup ered, simply filing new loan often does a loan, actually meet information the student hasn’t documents isn’t always enough. your needs?). The reality, however, ¢Vven thought of.” Within weeks of turning his new is that not only are many If your loan application does go loan documents into his bank, he students not eligible for ee a ead : these “freebies,” many the three most common mistakes kee are not eligible for loans : e was nd on period. Usually students made by students when filling out monthly payments pee tee SSR LC: student loan application forms are as = ie oe = either they or their a a in danger of flipping parents earned too much follows: not reading the questions into default status. th before. . . If you work over

ae peel properly, not understanding what is the summer, be sure about your loan or have being asked and not answering the _to sock some of that

i . : ° money away. Most ahaa questions—even if the answer isno Siedents arcexpected Financial Aid office has or zero it still must be given. to contribute to their an open door policy. fall living expenses. Financial Aid has an on-line aie __ Single students living connection to Victoria and can to appeal, don’t give up hope yet. and working away from home are usually tell you within minutes Appeals are adjudicated by a panel expected to contribute $21/wk

what your status is or if there are problems. They do ask, however, that you wait at least six weeks

of two student reps, two financial aid officers and a member of the public—usually someone who has

from their net earnings. Single students living at home are expected to contribute $133/wk.

teed loans are now getting new treatment. All of these loans, like the new bank-managed loans, will be reported to the credit bureau. No one is exempt!

The worst thing that could happen, (which given today’s employment climate quite possibly could), is finding yourself being chased down by a collection agency. The federal and provincial governments both employ private collection agencies. The federal government employs the Allied Credit Corporation and the

Assistance Division, “should never be reduced to emotional or abusive outbursts”

¢ collection calls must be made at a reasonable hour of the day

© use of voice mail or fax ina manner that “embarrasses, humiliates or alarms a debtor” is prohibited

* itis illegal to demand payment from debtors on income assist- ance

* misrepresentation on the part of the collector, in any capacity, is

62% of people ages 21-27 lived under the poverty line in 1995

before coming in to inquire. Obtaining approval on student loans is a slow, cumbersome process.

According to Douglas Financial Aid worker Patty Lewis, the three most common mistakes made by students when filling out student loan application forms are as follows: not reading the questions properly, not understanding what is being asked and not answering the questions—even if the answer is no or zero it still must be given. Workshops provided by Douglas ; Financial Aid are interactive and useful for avoiding these mis- takes—they actually help you fill out the form while you are there. Loan forms and pencils are provided.

If the unthink- able

worked in post secondary. These are not precedent setting proceed- ings. No one appeal is measured against another. Each appeal is looked at objectively.

Once you have your student loan safely deposited in the bank, the federal and provincial govern- ments make monthly interest payments while you're attending school. Presently you have to start paying interest the month you graduate, even though you don’t have to start repaying your loan for six months. So if you have any grand plans to start early payment on that principal, you're out of luck. And the new 18 months post

graduation interest relief

feds ends the minute you get a job and start

recently proposed by the

Alternatively you may be expected to pay 80% of your discretionary income—whatever that means.

Once you've survived the whole school ordeal and have your degree or diploma in hand, go to your local bank and negotiate a repayment schedule. We say negotiate because while most banks have set repayment sched- ules, let’s be reasonable, the economy isn’t doing too well right now. The banks are going to be glad to get what they can. The important thing to remember is that it is crucial to maintain open communication with your bank. If you let your financial situation get out of hand without informing the bank, your loan will flip into a default status and will either be turned over toa collection depart- ment within the bank or to a private collection agency.

By the way, all previously

defaulted federal and provin- cially-guaran-

Coffe, KA,

provincial government employs a company called Equifax. Anthony Webb from Allied says that under the previous system, default students had anywhere from six months to two years before the government took action, and then only the worst offenders were reported to the credit bureau. According to Mary Kimptom from the Ministry of Finance, those days are gone. Under the new system, all defaulters are immediately reported. Equifax’s Mr. Legeare (first name “Mr.” to callers from student newspapers) refused to comment about provincial policies of loan collection.

If you happen to find yourself being harassed over defaulted student loans keep the following points in mind: ¢ debt collectors are governed by

the same laws that govern bailiffs ¢ itis considered harassment for a debt collector to call you at work after you have asked them ad to

debt collection is a / ae and activity and, according to the Debtor

DAS

against the law

* if the debt is under $10 000, threats of substantial legal costs fall under the category of misrepresentation

* once a company has reported to a credit agency that your debt is in arrears, paying it back doesn’t reverse the status of your credit rating

So there you have it—the good, the bad, and the ugly of student finance. The Other Press wishes you all the best in your upcoming financial and educational endeavors.

The new student loan forms will be out May 1. Douglas College Financial Aid is gearing up for their next “busy season” and is preparing workshops on how to fill out student loan forms. Work- shops will run twice daily, four days a week during May (call 527-5487 to register).9p

That's not all, folks. The student loans feature continues on page 7

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The Other Press March 31, 1997