Guest sn0w0wl Posted June 1, 2004 Report Share Posted June 1, 2004 I'm shopping for an LOC this week and I was wondering if I should get a plan that would loan money during residency. I was under the impression that, since you're getting a paycheck in residency, it would be reasonable to start paying off your debts instead. Incidentally, is an increased interest rate (e.g. prime+1 after PGY-1) pretty standard? Thanks for your input--I'm trying to decide if it is worth changing banks. sn0 Link to comment Share on other sites More sharing options...
Guest Ian Wong Posted June 1, 2004 Report Share Posted June 1, 2004 Your LOC should stay at prime during residency as well. It should not increase to prime +1 or anything. Having that additional money during residency could be useful, particularly in the first year, as you'll have moving expenses, might want to pick up some furniture, get a car, and all those other potential costs that arise if you match into a residency in a new city. You're not going to get a paycheque immediately on July 1st, so either you throw everything on your credit card, or else dip into your LOC. Ian Link to comment Share on other sites More sharing options...
Guest McMastergirl Posted June 2, 2004 Report Share Posted June 2, 2004 This is just my own experience, but having just graduated from Mac and being flat broke, I would echo Ian's comments that you should be able to borrow into residency. Myself, I am over 100 000 dollars in debt. I think that is pretty standard if you had to borrow for undergrad as well as med school. I won't be starting to pay that back anytime soon. Look for a bank that offers interest-only payments well into residency - most of them are heading that way. You should have options for paying back your LOC principal, and there should be no penalties for paying back early. And, as Ian said, there should be no rise in the interest rate! I too thought that I could start paying back my loans once starting residency, but the PGY-1 salary for Ontario residents, which by the way is the highest of all the provinces, is 44 230, and after taxes and all my expenses, there is barely enough left over to make interest payments. So get a good deal now! Link to comment Share on other sites More sharing options...
Guest sn0w0wl Posted June 2, 2004 Report Share Posted June 2, 2004 Hmm--good advice (thank you), but not the offer I got from CIBC yesterday (they were saying after PGY-1 the rate goes up to prime+1, and they only offered 5K for the first year). I noticed later their website said something different so I'll have to go back. Today I've got a meeting with someone from RBC. I wonder how negotiable their plans are (are they set in stone across the country), and can I play one off the other? Link to comment Share on other sites More sharing options...
Guest sn0w0wl Posted June 2, 2004 Report Share Posted June 2, 2004 I was just wondering--do residents pay any tuition? (Is there any way they could be considered a student, despite their income?) Link to comment Share on other sites More sharing options...
Guest McMastergirl Posted June 5, 2004 Report Share Posted June 5, 2004 Don't take that "offer." You can get what you want... you need to be willing to ask for it and change banks if necessary. They are stupid if they let a future physician get away! No, residents aren't considered students - much to my chagrin! But, banks do recognize that we pay a helluva lot of tuition and don't get paid much during residency (for example, gross salary for PGY-1 in Ontario is 44 230). So, they will give you a break (eg, offer interest-only payment for 4 years after graduation). Here's a piece of advice I wish I'd had when I first negotiated for a SLOC... take out a life insurance policy for the amount of your loan from a private company, rather than creditor (bank) life insurance... it will save you a lot!!! Link to comment Share on other sites More sharing options...
Guest 4EverRose Posted June 5, 2004 Report Share Posted June 5, 2004 Hi sn0w0wl, RBC also offer you the option to defer the LOC principal and interest payments (accumulated from both undergraduate MD program and residency) until 12 months after the completion of your residency. Link to comment Share on other sites More sharing options...
Guest physiology Posted June 6, 2004 Report Share Posted June 6, 2004 Hey Snowowl, RBC offers you the option of paying back the principal 12 months following the completion of residency/fellowship. Interest payments are also at prime during residency/fellowship. From what I've seen, RBC is the best deal. I'll get more details on Monday when I meet with the bank manager. Link to comment Share on other sites More sharing options...
Guest Ian Wong Posted August 7, 2005 Report Share Posted August 7, 2005 Floating back to the top. Ian Link to comment Share on other sites More sharing options...
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