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LOC for the $14 000 tuition/year


Guest physiology

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Guest physiology

I went to Canada Trust today to get a bank draft for the criminal records check. God, it costs $6.50!!!!

 

Anyway, my point is, I started asking about the LOC and I just realized what a rip-off it was. Looking at the financial brochure included in my package, I thought "Well, Canada Trust/TD has the worst package, so perhaps they're willing to negotiate something better." I mean, it's the ONLY one with prime + 1%. Well bad news, it's completely non-negotiable (as least that's what the guy at the Oak and King Ed branch told me!).

 

I guess I'll have to switch banks then.

 

Are people leaning towards the National Bank of Canada/MD Management one?

 

These banks sure know how to make loads of money.

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Guest Koppertone

I applied to the MD Management one today. It seems decent, it's at prime, they didn't need a cosigner, you pay it back 1 year after starting your practice, etc. etc.

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Guest grins

I'm going with RBC, but only because I've had a line of credit with them for the past two year of my undergrad. They're very helpful, and I have had absolutely no trouble with them thus far.

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Guest Ian Wong

Most of the LOC's are pretty equivalent; there are small differences which may be worth checking out. I'm certain that my classmates had LOC's from all the major banks, and I think they were all for the most part satisfied with them. The one thing I would absolutely state is that you shouldn't settle for anything but prime rate on the LOC. Prime +1 should be considered unacceptable.

 

You are (like it or not) a commodity given your future income potential and likelihood to become a valuable bank customer once you start making money, and that means that you shouldn't settle for an inferior interest rate. :)

 

Ian

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Guest Kirsteen

Hi there,

 

Koppertone, thanks for posting that link--I hadn't come across it before. For anyone negotiating a LOC for medical school, print off that page and take it with you to your meetings with the bankers. This is the type of evidence, i.e., knowing that you know the market, that makes bankers bend and make concessions during negotiations. :)

 

MD Management gave me a shout back yesterday and I've set up an appointment with them to chat. I've been a Royal Bank customer for quite some time, so I'm hoping to leverage one off the other to see if I can gain a few added benefits. (This strategy worked quite nicely during my mortgage negotiation a bunch of years back.) I'll let you guys know if anything comes of it as once they let one person do something new, letting others do the same becomes increasingly easy. :)

 

Cheers,

Kirsteen

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My family wants to pay for my med school education. I'm wondering if there is any benefit in getting a loan from the bank instead in the long run such as tax return etc. Thanks.

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Guest Ian Wong

If you are on full student loans, you may qualify for some bursaries at your school, most of which require you to have maxed out on student loans as a condition of eligibility. As well, money used to pay interest off a government student loan can be deducted off your income tax as a resident/attending, when you are finally making money. I do not believe that you can deduct the interest off a bank line of credit the same way, therefore, I don't think there'd be any tax advantage to taking out loans now.

 

If your family has the money and is willing to pay for you, by all means let them! :)

 

Ian

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