Student Loans

[Guest wylie348]

Well, it sure hurts to be a good saver! I filled in the online app for loans today, and discovered that because I did not go on trips and spend lots of money, I am going to get nothing for a loan!

 

Sad but true, well, on to the LOC. I know this has been posted elsewhere in different fashion, but any of you U of C ers with some advice regarding where to deal, how much to deal for, and in particular, when you start to have interest calculated on the LOC, and other particulars...

Thanks!

 

I am STILL freaking out that I am accepted, and am really looking forward to getting together with the rest of you class of 2009 ers!

[Guest Lurkergonepublic]

I know what you mean - I learned that lesson in undergrad - the governemnt will severely punish any fiscal responsibility greater than their own. I scrimped and made due to keep loans down, finished off at 22K, then found out anything over 20K was freely remitted. Damn it I could have been frely partying and had the same debt!

 

I had a friend who took two years off to repay the first half of her student loans, then couldn't get a new one because she hadn't been using her working time to save for school... I don't think I could invent a worse system. Long story short, I have sinced learned my lesson and spent the last 4 years working full time AND on interest relief to avoid paying back the gov't with no penalties. I'd never do that with anything but a gov't loan. My plan was to wait until inflation devalued my loans. :lol Now my med loans will just be so big that undergrad will be nothing beside them! How's that for financial planning...

 

Congrats by the way. See you in August.

[Guest wylie348]

Thanks Lurker! My problem is that I have been working now at a nice salary level. I will probably get 0 for student loans, but next year (when I will have 0 on line 150), I will probably do alright.

 

See you at the (hopefullly new) foosball table!

[Guest HP]

I got the big "$0" on the online loans application too, except I think my problem is that I'm still technically a dependent (and my parents would love to know how the government can see them as dependable for the >$15,000 tuition and equipment). I'm going to talk to Student Awards more today when I drop off the bursary application form.

 

There's a nice comparison chart in this thread p090.ezboard.com/fpremed1...125.topic. I just signed off on a LOC with BMO. Didn't shop around much because they handle some other things for my family and they know us, but I'm happy with the terms. $30,000 per year to a maximum of $150,000, including $15,000 in each of the first two years of residency. Interest is calculated daily at prime on whatever your balance is, and payments are monthly.

[Guest wylie348]

But how are you making the payments - with your credit line?

Just trying to figure out how it will work...

Thanks,

[Guest wylie348]

Seeing as U of C does not issue a formal acceptance letter via canada post, what documentation are people using at the bank when requesting an LOC?

Thanks,

[Guest muchdutch]

HP - how are you still a dependent? Are you young? Or do you just live with your 'rents? Because with loans you aren't considered a dependent if you are >2 years in the workforce, or live on your own, or are over the age of 21 (I think?) at the time of the start of school. So if you are over 21, even if you live with your parents, you don't have to claim their income and you aren't really a dependent.

[Guest Lurkergonepublic]

Yes - LOC interest payments generally come out of your LOC - nice circular build up of debt there. Except at CIBC apparently - met them today and you have to have an income or savings available until the end of your first res year to pay the interest with... C-ya! I'm leaning to Royal (great service my someone who KNOWS the details and will pull strings) or MD management (seeing them tomorrow).

 

As for an official aceptance letter, if you email Susan and let her know what you need (Adele's on vacation) she wil print up and mail/fax/hold for your pick-up an official letter confirming receipt of your deposit to show off at the banks.

[Guest Kirsteen]

Hey there,

 

I have a Royal Bank LOC and they take my interest from my chequing account every month.

 

Cheers,

Kirsteen

[Guest HP]

My LOC was set up to automatically debit my savings/chequing account, and I'm just going to write cheques to myself to make sure there's enough in there to cover it. Circular interest FTW! I guess what it really means is that I have about $28,000 to spend, since the other chunk is just there to service it.

 

As proof, I brought some e-mails, including the acceptance one from Susan, my degree navigator report, and some printouts of other documents like the O-Week welcome letter. I was going to ask Admissions for something if that wasn't enough, but it seemed to be ok.

 

Much: I'm 20 right now, and three years out of high school. From what I understood, I would have to be four years out of high school or I would have to be going to school outside of commuting distance from my parent's home (ie. UofA) to be classified independent. It's not ideal, but I'll probably have to live at home for at least a little while during first year until I can afford something else.

[Guest wylie348]

Just had two interviews with loan managers at HSBC and RBC. Looks like my big decision now is whether to use the LOC to pay off my mortgage, and then pay off one loan instead of two. I also do not really need $ that much yet, as I have savings, but it is going to be nice to have something to fall back on.

Now I wonder what the best way is to go about using the LOC, and ensuring that my family can continue to live in the same house and so on...good thing my wife will be supporting me during this adventure!

[Guest Lurkergonepublic]

Oh so you have savings AND a partner's income Wylie - no wonder the government won't give you money.

 

My wife's income is zero, but so are our child care expenses (plus she's due to give birth to number 2 any day now, so wouldn't really be working for awhile anyway). We figured out that for her to go back to work, get a second vehicle, and pay for 2 kids daycare, we would be bringing in a whopping extra $250 a month (before taxes of course). Fortunately she would rather stay home and raise her own kids, so we're happy with that ... now if only we could convince the government and their loan formula that this is the best decision and we're not holding out on them. :lol

 

I met with MD management today, and they're very helpfull. Whether I get my LOC through them, or Royal, they offer no fee financial planning, investing, etc (all paid for by CMA dues for us doctor types). Trying to decide between them right now. Royal is convient, face to face rep, lots of branches... but MDM (LOC through national bank) can be accessed by phone, email, all hours of the day - although you'll never really be meeting with the same banker or in person.

 

At my CIBC meeting the rep just read the conditions to me off the web page, and didn't know any more than that (BUZZ - next), At Scotia she was nice, but new to the job and couldn't answer many of my questions (BUZZ - next). BMO is where I've banked before, but 1- I can never, ever phone and talk to a person, and 2- the used car loan they just graciously granted me was nearly 6% above prime - even though I had just got my acceptance letter. All the banker could make of that was that my income would probably go down during med school, so I was high risk for a <6K loan. Puhlease. I plan to either totally pay that off in full right away with either my LOC, or a near prime additional loan with whatever bank I work with, so that BMO will not make 1 red cent of interest off the three hours with loan officers they made me sit through for that punishment. Vengefull maybe, but hasn't everyone wanted to stick it to their old bank at one time or another?

[Guest wylie348]

I admit that we are sitting 'pretty' right now financially, but it will be a big shock to the system to no longer have my salary coming in each month.

 

Just like you Lurker, the RBC person did not know much about the plan and tried to push the prime+1 gig, which I quickly assured was not the case with other students and so she said - "oh I am certain we can manage prime..."

 

My plan is to try to maximize available $, but minimize both borrowing and changes to our current lifestyle. It will already be difficult enough not having me around during the week, and only home on most weekends...

 

At this point though, I am undecided as to use the LOC to pay off my current mortgage, but then I am hooked on repaying the LOC at prime (which can vary), when I could stick with a longer term mortgage at a fixed rate...

 

Decisions, decisions...

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[Guest MDintraining]

Hi,

 

I've heard several times that with student loans it doesn't pay to spend as little as possible and save for school. Can someone please explain in more detail the process of paying back your loans? Is it true that the government forgives your loans to a greater extent if you have more loans taken out? Also, if you were to take a part-time course in the time between clerkship's end and the start of residency, would that delay the start of your loan pay-back dates?

 

Thanks

 

mdintraining