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distressedpremed

Nslsc Repayment?

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Hey guys,

 

I consolidated my NSLSC loans about three weeks ago with my Line of Credit (I am officially very, very very poor).  This was about 3 weeks ago.  

 

I haven't heard anything from the NSLSC with regards to any emails confirming the payment has gone through.  No updates on the NSLSC account page for me.  

 

Has anyone else heard anything? Just want to make sure I'm not charged any ridiculous interest on this. 

 

Thanks! 

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Just now, leviathan said:

Just be aware that interest payments on your LOC are not tax deductable while your govt student loan is. Might be cheaper to not consolidate.

I have done the math with that - and it almost always STILL works out cheaper to consolidate. The interest spread is just too high. 

 

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Just now, rmorelan said:

I have done the math with that - and it almost always STILL works out cheaper to consolidate. The interest spread is just too high. 

 

I consolidated mine, but my MD Management advisor told me that I shouldn't have done it! I never did the math, but the difference in interest seems too much to not be a better option.

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Just now, leviathan said:

I consolidated mine, but my MD Management advisor told me that I shouldn't have done it! I never did the math, but the difference in interest seems too much to not be a better option.

errr I would love to see their math on that :)

 

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1 hour ago, bearded frog said:

It would depend on the amount of student loan, and the interest rate of your LOC and student loan, so it might be worth it for some and not for others.

Other than the amount consumed by the LOC and thus loss of flexibility, why would the amount matter? 

what am I missing? :) 

 

 

 

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Actually I think it depends on your tax bracket actually, if your tax rate is higher or lower than the additional interest plus prime on your student loan. If you consolidate your interest goes down but you lose out on the tax deduction for that portion of your overall debt, so there is math involved :(.

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On 2017-06-17 at 1:37 PM, bearded frog said:

Actually I think it depends on your tax bracket actually, if your tax rate is higher or lower than the additional interest plus prime on your student loan. If you consolidate your interest goes down but you lose out on the tax deduction for that portion of your overall debt, so there is math involved :(.

Not so much 

 

It's a credit, not a deduction. So doesn't depend on bracket

 

(except for the silly case of Ontario surtax on income >$84k income, which would lead to a tiny increase in their value)

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It also depends on the province. For Canada-Newfoundland Student loans, the provincial loan portion is tax exempt, so you only pay interest on the federal portion of the loan, which changes the interest spread in the calculations.

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