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Canada-Ontario Student Loan - enforceable without signature?
I was accepted into the Repayment Assistance program several years ago. Last year, they split my integrated loan in two, telling me that the Federal Portion (a good 2/3rds of my loan) was going to be paid off by grants due to my being disabled with financial hardship. As a part of it, they gave me a Revision of Terms (which I signed) for the original loan account with my new principle being smaller. They never sent or otherwise asked me to sign an agreement for this second loan for the split, despite several phone calls where I offered.
Now I am receiving notices of arrears for the second loan they split off. Currently, I am being told that this is due to system maintenance and I am to disregard these notices. However, between these notices and other issues with the National Student Loan Service, I know they make mistakes and you pay for the error.
Since they rarely sue, just garnish your taxes refunds and wages because they're government and can work with CCRA, I don't think I'd ever truly get a day in court over the issue if pursued. Can they make me pay back this second loan for which I never signed an agreement? Can they garnish my taxes and wages without an agreement?
But, in contract law, if the first offer is accepted, then a counter offer is given and accepted, can you then go back and say "well, no, I liked the first offer better?" To use bw022's example, if you buy my car for $5000, then I come back and say "You're paying too much, how about $4000?" can I go back and say "You know, actually I think $5000 would be much nicer..."
That's what's happened: I never expected to not pay back my loans and I signed an original agreement to pay back everything plus interest. They came to me and offered a Revision of Terms, reducing it to only a 1/3rd of the original amount, plus interest. I don't dispute that I took the money, nor had I ever asked or intended to not pay it back. However, what fool wouldn't take the offer? Besides, I actually did it under threat: if you don't sign, they write you off as having defaulted even if you have been paying or otherwise making arrangements!
As for the second loan, what's the benefit? They did it to pay off the f
As for the second loan, what's the benefit? They did it to pay off the first, not me. If I have to pay off the second loan, then I received no benefit. Actually, I am worse off: I liked having one loan, one account to keep track of, one cheque to write. I would have never split the damned thing, creating more paperwork for the same money (actually, it might even be more than the original)
1 Answer
- bw022Lv 710 years agoFavorite Answer
Few things about contracts...
First, a contract can be valid without signature(s). You can have an oral contract and you can have an implicit contract -- where an agreement is considered accepted if both sides merely begin to fulfill the contract. If you accepted the money without signing for the loan, you have accepted the contract.
Second, if you go to court and manage to get a contract ruled invalid, baring a scam... a judge will always order that both sides return considerations to the others. If I buy a car from your for $5000 and the contract is found invalid... a judge will order me to give the car back to you and you to give me my $5000 back. Even if you get the contract ruled invalid... the ruling would be you have to pay back the loan immediately (although you might get out of having to pay interest). If you can't... then the agreement stands.
Yes, they can garnish your taxes or wages. Even if you didn't sign, by accepting the benefit of the agreement you agreed to it. If you want to take them to court, the best a judge rule the contact invalid and order you to immediately return the amount you borrowed. Since you likely can't repay the money immediate, the agreement stands.