Student Loans

[Guest RageoftheDragon]

Everyone is talking about the LOC, which is necessary, but what about getting student loans on top of the LOC. It seems to me that it would be a smart idea as the interest is cheaper, portions of the loans are payed back, and it would drop the amount of $ you need to draw from your LOC. Also, according to this Sk. Student loan application package, Med students are given more student loans than others (undergrad, etc). Any reason I have not heard/seen more about this option? I'm wondering if someone recieving an LOC is somehow excluded from student loans or something.

 

RotD

[Guest Ian Wong]

Student loans are always what you should max out on first. Line of credits should only be used above and beyond what the student loan provides. Unfortunately, in most Canadian medical schools (not sure about U of S as you guys have pretty cheap tuition compared with the rest of the country), student loan quantities have NOT kept up at all with tuition increases, and you simply cannot afford tuition and living expenses using student loan money alone. The Line of Credit has, in that sense, become a necessary evil.

 

Student loans have it all over the Lines of Credit, because with student loans, the government pays all the interest on the loans until after you graduate. With LoC's, you are responsible for the interest payments the instant you take them out.

 

Ian

[Guest Ollie]

Hi,

 

I will certainly be maxing out my student loans for the next 4 years. Unfortunately, the max I can get ~ $10-11K won't even cover my first tuition installment, never mind living expenses. Hence the need for the LOC. AFAIK, in BC anyways, Med students don't necessarily qualify for more student loans, but the cost of tuition does pretty much guarantee that you will get the max. However, an undergrad, independent from the parents would likely get the max, or close to it as well.

[Guest RageoftheDragon]

Yeah, such is what I thought. Good to know. Looks like the time for getting an LOC is creeping up ever faster.

 

RotD

[Guest aneliz]

I agree...max out the student loans first.... but in most cases, the max student loan will not even cover the first installment of tuition...so an LOC becomes necessary.

 

It would be nice if med students got more student loans...unfortunately this seems to be an SK only thing...it doesn't work like that in ON or AB or any other province that I have heard about... so enjoy it!

[Guest bruhaha]

when you say student loans, does that mean anything aside from OSAP? Is there some other friendly student loan place I should be looking into?

[Guest Kels2004]

Hi bruhaha - OSAP is the government source of student loans for ontario students, so that is what you want (assuming you are an ON res).

 

You apply to your provinces's student loan program and can receive provincial and federal loans (2 separate loans, but just one application process).

[Guest northernjo]

I was wondering how much having a car as an asset will affect my student loan in the future. I don't have a vehicle right now and I qualified for the max loan. But I'm going to need one soon and I'm a little worried how much it will impact my loan assessment. Does anyone know how this works?

 

thanks

[Guest luch]

I believe you are allowed up to a $5000 vehicle and anything over that is counted against you.

 

Ciao

[Guest aneliz]

correct. You are allowed to own a vehicle that has a maximum value of $5000. Anything over that will be taken dollar for dollar from your student loan entitlement because it is considered an asset. At UWO, the administration will write a letter on your behalf stating that a car is a necessity of your program and this raises the maximum value to $10 000...

 

So, if you have a car worth $12 000....

 

Assessed for Max OSAP = $11 000

 

You are allowed to have a car worth $5000....so, excess car value = $7000

 

OSAP you will get = $11000 - $7000 = $4000

 

If UWO writes the letter on your behalf, car exemption goes up to $10000

 

So....OSAP you will get = $9000 (max OSAP - value of car > $10 000)

[Guest Elaine I]

Do most schools write letters stating that cars are necessary? Does the letter apply for all years, or only clerkship years?

 

Thanks for the info,

Elaine

[Guest Ian Wong]

Floating back to the top.

 

Ian

[superchargedman]

I am planning on putting in my application for OSAP this summer, and then I'm going to pick up some wheels. Does anyone know if this could put my loan for that year in jeopardy?

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DODGE 440

[Satsuma]

Yes having a car screws you for OSAP, whether leased or owned. Yes, while having a leased car is a liability to most, it is an asset to OSAP!

 

OSAP lets you have a car valued up to 5k. The difference between the value of your car (which they determine) is the directly deducted from the total amount of OSAP you qualify for. So if you qualify for $13 000, and you have a car worth 15k...you will get 3k from OSAP.

 

Once in clership, most schools write a letter to state that a car is required and in that case you can now how a car valued at 10k before any deductions come off.

[Talon01]

Or you can put all the paperwork in one of your parents names and you're good to go

[superchargedman]

Yes, I understand that the car will bring down FUTURE loans from OSAP, but does it affect the loan that they already authorize for that year (i.e. I apply, they approve and decide I get X amt of dollars, then I get my car...does the car affect whether they will give me all of that amount?).

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Cmx250C

[Satsuma]

You would be taking a risk that your file would be re-evaluated and they would then ask you repay the amount over what you are reassessed at/or they deduct that amount from your next year's loan. Kind of like when they reassess based on your income tax return...if you actually earn more than what you said you would.

 

As far as I know, that is about it.

[Talon01]

You would be taking a risk that your file would be re-evaluated and they would then ask you repay the amount over what you are reassessed at/or they deduct that amount from your next year's loan. Kind of like when they reassess based on your income tax return...if you actually earn more than what you said you would.

 

As far as I know, that is about it.

 

That happened to me. I applied for OSAP, got a car, and by luck of the draw got audited and they took it off my following years' OSAP even though I had transfered it all to my parents.

[superchargedman]

youch, sorry to hear that. thanks for your advice, guys! i found out that i can get my gparents to claim ownership on the car even though i'm in another province. mazdaspeed for me!

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AMBASSADOR

[Steve-0]

I have a question about student loans (I'm going to U of C and am an Alberta resident, if that helps). I don't think I will be eligible for student loans currently because I live with my parents, but am planning on moving in with my GF before school begins (likely start of July or Aug). Will I be able to apply for a student loan letting them know I will be moving out, or could I apply after I move out?

 

Thanks for any help/advice.