Guest ioncannon97 Posted July 30, 2004 Report Share Posted July 30, 2004 Hey guys, I've been reading about Professional Student LOC's from a few banks such as BMO and CIBC and have found that they all state that during medical school, we pay "only" the interest every month. How are we supposed to make these payments? With money from outside the LOC or can we actually use the unused portion of the LOC to pay for the interest on the used portion? Link to comment Share on other sites More sharing options...
Guest chickenlump Posted July 30, 2004 Report Share Posted July 30, 2004 yup, if you don't have any money, you can draw on your LOC to pay the interest... of course increasing the amount of interest for the next time. Quite an evil cycle really. The only differences some banks have is the interest either comes out of a separate account (so you have to keep track of that), or they automatically add it on top of the borrowed amount on your LOC Link to comment Share on other sites More sharing options...
Guest gonzo23 Posted July 30, 2004 Report Share Posted July 30, 2004 Hey. I've gone with the National Bank MD Management option and with them the interest is compounded on your account while you are in school. So basically they charge you interest each month but it gets piled directly onto the outstanding balance you have taken out for the LOC. I found this more convenient than worrying about having available funds in my own bank account to pay the interest. As well, for anybody who isn't aware, National Bank just increased their LOC limit to $200K. Obviously most students would not be eligible for this amount but they said to me that if I had circumstances that justified being approved for more it was possible. I don't know if that makes me happy or frightened Link to comment Share on other sites More sharing options...
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