Students file information requests to find out student loans owed

Jaela Bernstien and Mike Hayes, UWO Gazette (University of Western Ontario)

LONDON, ONT. (CUP) — Recent reports show that students who require information about their own student loans are being forced to file “Access to Information” (AI) requests.

“We’re in this bizarre situation where a borrower cannot find out from the agency that’s holding their loan what they owe,” said Julien Benedict, founder of the Coalition for Student Loan Fairness (CSLF), said.

Since 2004, 127 borrowers have filed access requests.

The original intent of AI requests was to “provide a right of access to information in records under the control of a government institution.” Some students are questioning why this has become a necessary step to see their own files.

Benedict said that the issue arose once students defaulted on their loans and the file was passed to a collection agency employed by the government.

“Borrowers should always have access to an up-to-date balance [and] they should not be paying collection agencies that cannot collect this information,” said Benedict.

Students can get a balance from the collection agency, but never a breakdown, Benedict explained.

This is a problem for students trying to calculate how much of the balance is interest, principle, or service charges.

The problem is compounded since students’ files are often passed from collection agency to collection agency, he said.

“It’s very frustrating for borrowers because they don’t know who’s holding their file,” Benedict said.

David Simmonds, a vice-president with the students’ union at the University of Western Ontario, said that students are becoming frustrated.

“We hear from students constantly that the maze of paper and documentation in the student loan system is burdensome,” he said.

Simmonds also said that the National Student Loan Centre (NSLC) needs better customer support when dealing with students.

He said a certain level of customer satisfaction is necessary to maintain a healthy contract.

“We can assume that the emotional distress caused by not getting the emotional support necessary can attribute to defaulting.”

In its contract with the government, which was obtained by CSLF through a freedom of information request, a higher incentive is placed on continuing a loan than ensuring customer satisfaction.

“Everywhere in this contract it recommends borrowers extend their repayment period to reduce their monthly owing amount,” Benedict said.

“Instead of reducing the sky-high interest rates, so people can pay off their contracts faster, they’d rather extend the contract and have people pay more interest,” he added.