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Lines of Credit for Medical Students (Scotia is the best option)

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Do you have to make a budget to get the $50 000/year from NB?

 

I spoke with an RBC rep and they said that, depending on my needs, they might only allow $25 000 - $30 000/year for my first 2 years until I decide on a specialty. Did anyone else get this type of answer from RBC?

 

You gotta be dealing with a joker. :eek: When I saw RBC, they never said that and had they dared, I would have said goodbye quickly.

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You gotta be dealing with a joker. :eek: When I saw RBC, they never said that and had they dared, I would have said goodbye quickly.

 

yeah, another person in a bank with no clue - time to find the right person to talk to.

 

Ha - and what does your specialty have to do with anything - you may earn more with some in the end but in all cases it is more than enough to support the loan. Even as family doc you would even be starting to pay that back well before everyone else (if I went into family medicine I probably would have the darn thing well on the way to be paid off by the time others had completed their specialty training).

 

I always wonder where they pull these weird numbers out of the air from (20-30K why the range. How would they use the specialty information?)

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According to this rep, she said when we make it to 3rd -4th year (when we start choosing our specialties); we have less of a chance of quitting med school. They want to protect their investment and said that students do end up dropping out after 1st or 2nd year. They don’t want students to have $150 000 – $200 000 to pay off with an ordinary job (if they quit med school). I somewhat understand that but I wouldn't think that many students end up quitting after all they did to get there.

 

Anyways, thanks for your opinions. I will try Scotia and/or National tomorrow!

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According to this rep, she said when we make it to 3rd -4th year (when we start choosing our specialties); we have less of a chance of quitting med school. They want to protect their investment and said that students do end up dropping out after 1st or 2nd year. They don’t want students to have $150 000 – $200 000 to pay off with an ordinary job (if they quit med school). I somewhat understand that but I wouldn't think that many students end up quitting after all they did to get there.

 

Anyways, thanks for your opinions. I will try Scotia and/or National tomorrow!

 

I mean what she is saying if you didn't know the system makes sense but that just isn't what her bank's policies are, or consistent with the market. That is the bottom line - something has gone off the rails.

 

The number that drop out after 2 years is extremely small (although a real risk) and even if you did you shouldn't have spent anywhere near 150-200K by the end of second year spent unless something very strange is going on - it would suck but you could pay off with a regular job eventually the more realistic 70K by then.

 

Good luck with the other banks - this one has just lost your business.

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Do you have to make a budget to get the $50 000/year from NB?

 

I spoke with an RBC rep and they said that, depending on my needs, they might only allow $25 000 - $30 000/year for my first 2 years until I decide on a specialty. Did anyone else get this type of answer from RBC?

 

Don't sign with this person- medical students get 200 or 250K depending on the bank. This is not negotiable at all! They can't offer you anything else.

 

If you're going to UT for Med, you might have some issues getting it approved before August as UT appears to be the only school that doesn't give confirmation of acceptance (which banks are now asking for). If you are going to any other school, you should have zero problems getting 250K approved immediately by RBC. You have the authority to withdraw every cent the very next day if you wish (I'm just pointing out how much power you get over your own LOC).

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Don't sign with this person- medical students get 200 or 250K depending on the bank. This is not negotiable at all! They can't offer you anything else.

 

If you're going to UT for Med, you might have some issues getting it approved before August as UT appears to be the only school that doesn't give confirmation of acceptance (which banks are now asking for). If you are going to any other school, you should have zero problems getting 250K approved immediately by RBC. You have the authority to withdraw every cent the very next day if you wish (I'm just pointing out how much power you get over your own LOC).

 

Hey Leon, are you referring to confirmation of acceptance or enrollment. How would one get it from another school? Is it just email?

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Hey Leon, are you referring to confirmation of acceptance or enrollment. How would one get it from another school? Is it just email?

 

it used to be although they don't trust those anymore (ha - the back story for makes the change stunningly clear - banks don't like to lose large sums of money) - typically it requires a letter from the school confirming enrolment.

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it used to be although they don't trust those anymore (ha - the back story for makes the change stunningly clear - banks don't like to lose large sums of money) - typically it requires a letter from the school confirming enrolment.

 

Does anyone know if Mac (or other schools) provides this?

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Does anyone know if Mac (or other schools) provides this?

 

Every school I have run into has system for it - the big question is when do that produce it. Last year it was a bit easier, the banks were a bit freer with things but have tightened up it lately. You just need to find out what your particular bank needs and check with the office at your school as to when they provide it.

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It seems that this requirement for enrollment exists only with Toronto RBC or Scotia branches. Try talking to a representative from another place (Hamilton, Kingston, Ottawa, London), even if you won't attend the local institution. The one that I talked to in Ottawa didn't require the enrollment (just acceptance letter ). However, only the loan application has been submitted (with the help of a Rep) so far, but it seems likely that it will go through.

 

Check out these to links (sorry if its posted earlier in the thread) for the reps who are specialized with this:

 

http://www.rbcroyalbank.com/student/specialist-locator/index.html?province=ontario&school=uoo#

 

http://www.scotiabank.com/ca/common/pdf/business/University_Reps.pdf?v3

 

You just get the application done over the phone with representative. Then, once the loan is approved, go to your local RBC or Scotia branch to sign off on any paper work.

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Hey Leon, are you referring to confirmation of acceptance or enrollment. How would one get it from another school? Is it just email?

 

Some need confirmation of acceptance but the downtown TO branches need confirmation of enrollment.

 

Does anyone know if Mac (or other schools) provides this?

 

The Hamilton branches of the banks said they just shoot off an e-mail to Wendy who confirms your place in the program, and that's all they need.

 

It seems that this requirement for enrollment exists only with Toronto RBC or Scotia branches. Try talking to a representative from another place (Hamilton, Kingston, Ottawa, London), even if you won't attend the local institution. The one that I talked to in Ottawa didn't require the enrollment (just acceptance letter ). However, only the loan application has been submitted (with the help of a Rep) so far, but it seems likely that it will go through.

 

Check out these to links (sorry if its posted earlier in the thread) for the reps who are specialized with this:

 

http://www.rbcroyalbank.com/student/specialist-locator/index.html?province=ontario&school=uoo#

 

http://www.scotiabank.com/ca/common/pdf/business/University_Reps.pdf?v3

 

You just get the application done over the phone with representative. Then, once the loan is approved, go to your local RBC or Scotia branch to sign off on any paper work.

 

Yup this is the only option for UT students at the moment. I'm close to signing with Scotia in Hamilton and I chose to drive in personally as I would like to meet the rep that I'm going to work with but getting the paperwork sent to your local branch works too. I'll post details if I actually get access to funds as promised.

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Some need confirmation of acceptance but the downtown TO branches need confirmation of enrollment.

 

 

 

The Hamilton branches of the banks said they just shoot off an e-mail to Wendy who confirms your place in the program, and that's all they need.

 

 

 

Yup this is the only option for UT students at the moment. I'm close to signing with Scotia in Hamilton and I chose to drive in personally as I would like to meet the rep that I'm going to work with but getting the paperwork sent to your local branch works too. I'll post details if I actually get access to funds as promised.

 

That's great then. I guess I'll go to Hamilton branch of either bank if the downtown Toronto banks can't do the same.

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That's great then. I guess I'll go to Hamilton branch of either bank if the downtown Toronto banks can't do the same.

 

RBC in Hamilton needs enrollment. Scotia in Hamilton does not.

 

RBC in London doesn't need enrollment.

lol

 

This is the RBC rep in Hamilton. You could try but she was very adamant about enrollment proof, but less rude than the downtown TO reps.

 

Glenda I. Hedley | Account Manager, RBC Royal Bank | Royal Bank of Canada

Glenda I. Hedley | Mutual Funds Representative | Royal Mutual Funds Inc. | Hamilton, On.| T. 905-521-2160 | F. 905-521-2213

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RBC in Hamilton needs enrollment. Scotia in Hamilton does not.

 

RBC in London doesn't need enrollment.

lol

 

This is the RBC rep in Hamilton. You could try but she was very adamant about enrollment proof, but less rude than the downtown TO reps.

 

Glenda I. Hedley | Account Manager, RBC Royal Bank | Royal Bank of Canada

Glenda I. Hedley | Mutual Funds Representative | Royal Mutual Funds Inc. | Hamilton, On.| T. 905-521-2160 | F. 905-521-2213

 

Ok so I am confused. I thought you said hamilton branches of either bank could email Wendy to confirm enrollment? Or is it just Scotia's branch?

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Ok so I am confused. I thought you said hamilton branches of either bank could email Wendy to confirm enrollment? Or is it just Scotia's branch?

 

Ah sorry- I was thinking along UT lines.

 

If you go to Mac, then both RBC and Scotia in Hamilton should be fine as Mac DOES provide proof that you are a student there.

 

If you go to UT, then Scotia in Hamilton will work (As they are OK with Offer letter only) but RBC in Hamilton will not (as they want proof you're enrolled and UT Does not provide this until August 26).

 

So you're only screwed if you're going to UT. With any other school, your local branches should be totally fine as the other schools are willing to provide proof. I hope that's clearer, and my bad for the confusion!

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RBC in Hamilton needs enrollment. Scotia in Hamilton does not.

 

RBC in London doesn't need enrollment.

lol

 

This is the RBC rep in Hamilton. You could try but she was very adamant about enrollment proof, but less rude than the downtown TO reps.

 

Glenda I. Hedley | Account Manager, RBC Royal Bank | Royal Bank of Canada

Glenda I. Hedley | Mutual Funds Representative | Royal Mutual Funds Inc. | Hamilton, On.| T. 905-521-2160 | F. 905-521-2213

 

Ha - they are still struggling with the newer rules - you would think this would all be centralized but then if it were we wouldn't be having so many issues with people at banks not knowing what is going on :)

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May I know why is everyone trying to get their LOC so soon? Tuition isn't due till August (or Nov if you deferred payment).

 

I am sure you can guess some of things people might do with access to a large LOC and firm knowledge they are now in medical school :) Not to go too crazy but some people in the past did take advantage of it for sure.

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Finding an apartment, paying first month & last month, one does not wait until last moment to sign a lease. Buying furniture, possibly a car, relocation expenses, perhaps consolidating old student debt at more affordable interest rate are just some of the reasons to set up the LOC asap.

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Does anyone know if the interest on an loc is simple? Or does it compound?

 

Compound since if you have no income, you will be making the interest payments from the LOC itself, thus you will be paying interest on the interest. Some banks even do this for you though it's not exactly hard to set up an auto transfer for it.

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Compound since if you have no income, you will be making the interest payments from the LOC itself, thus you will be paying interest on the interest. Some banks even do this for you though it's not exactly hard to set up an auto transfer for it.

 

Yeah it is compound interest applied monthly.

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Ha - they are still struggling with the newer rules - you would think this would all be centralized but then if it were we wouldn't be having so many issues with people at banks not knowing what is going on :)

 

I, for one, am glad it's not yet centralized! Else I'm sure every bank will deny the LOC until Sept if you go to UT.

 

May I know why is everyone trying to get their LOC so soon? Tuition isn't due till August (or Nov if you deferred payment).

 

Moving costs, repaying OSAP, consolidating outstanding debts into a line with the best possible interest rate etc etc

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