Whitehorse Daily Star

Dawson resident sued over loans

A $2,434 student loan has turned into a lawsuit for a Dawson City resident.

By Whitehorse Star on July 12, 2007

A $2,434 student loan has turned into a lawsuit for a Dawson City resident.

The suit was filed against Antoinette Oliphant on Tuesday in Yukon Supreme Court by the Attorney General of Canada.

In addition to the $2,434.29 principal which the government says is still owed on the loan taken out in 1994, the federal government is claiming interest on the loan, post-judgment interest, court costs and anything else the court may order.

The lawsuit states that in 1994 and 1995, Oliphant took out a student loan totalling $3,330.22.

By Nov. 1, 1995, there was $142.22 in interest owed on the loans, it's noted.

On April 15, 1996 the Toronto-Dominion Bank, which disbursed the cash, wrote a letter to Oliphant stating the loan payments were five months in arrears.

That was followed by another four letters between May 1996 and July 1998 requesting that arrangements be made for the loans to be paid, the lawsuit states.

Finally, the bank called on the federal government to pay back the loans.

Under the Student Loans Act, if a person defaults on his or her federal student loan, the government pays the bank.

In September 1998, the federal government paid Toronto-Dominion for its loss on the loan of $2,640.05.

While Oilphant made four payments between November 1998 and January 1999, shortly after that, she declared bankruptcy. The bankruptcy was discharged in 2001.

On March 23 of this year, the attorney general sent a demand letter to Oliphant for a total of $4,273.30 (a principal of $2,434.29 with $1,839.01 in interest).

A financial information form was included with the letter, with Oliphant given until April 11 to return the document.

It was never sent back to the federal government, the lawsuit states.

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