Guest anatomist Posted September 20, 2005 Report Share Posted September 20, 2005 Hi all, Just checking in after the last round of applicants have (hopefully) finished their financing arrangements. Any luck with MDM or RBC (or others) consolidating prior student loans? Just checking, thanks! Kevin Link to comment Share on other sites More sharing options...
Guest UWOMED2005 Posted September 20, 2005 Report Share Posted September 20, 2005 I was all about consolidation. . . Until I heard some rumours that they might allow residents no-interest status sometime soon. I would bet my life on that happening, but I'm willing to wait a bit to hear more before consolidating. That also had something to do with my personal financial situation. Link to comment Share on other sites More sharing options...
Guest Kirsteen Posted September 21, 2005 Report Share Posted September 21, 2005 Hi there UWO, Regarding the no-interest status, for what type of loan is that? MD Management loans or provincial loans, or some other? I'm keen to know. Cheers, Kirsteen Link to comment Share on other sites More sharing options...
Guest UWOMED2005 Posted September 21, 2005 Report Share Posted September 21, 2005 There have been RUMOURS that some of the provincial student loans might grant interest free non-repayment (ie no more loans, but no interest and no repayments) to residents. My understanding is that Saskatchewan has already done this. I have heard a RUMOUR that PARA (professional association of residents of alberta) are negotiating for this with the new contract (we're expecting news in Nov.) AND on a lark, I filed an OSAP application this year as a resident. Obviously no loan was offered. . . but they asked me to get info from my University as "this matter was being reviewed." I'm not expecting anything from all this, but consolidating would wipe out any remaining space on my Line of Credit (and I'd still have some provincial loans!!) and liquidity is a premium as a resident (where as long term repaying ability is improved.) So I think holding out for a few months on consolidating is worth it, considering the payoff. Either way, eventually I WILL consolidate. Provincial student loans ask for a ridiculous interest rate (prime + 5% as a long term interest rate!?!?) Link to comment Share on other sites More sharing options...
Guest cracked30 Posted September 21, 2005 Report Share Posted September 21, 2005 Is it really prime plus 5%? Yikes, I thought is was prime plus 2.5%. Either way, I asked about the interest free status to a CIBC person. They hold quite a few CSL and OSAP loans on their balance sheet. She looked at me like I was nuts. Now, if you have kids, and you fill out a bunch of forms, they can give you interest free status. But I decided that I'll just consolidate for the sake of simplicity, it still saves me some money, even with the tax credits, which are bullsh*t. I have to say that when Ontario introduced tuition deregulation, my loyalty to practice in this province dropped considerably. But that's another story. Link to comment Share on other sites More sharing options...
Guest UWOMED2005 Posted September 21, 2005 Report Share Posted September 21, 2005 It's prime plus 5 for a fixed rate, prime plus 2.5 for a floating rate. Yeah, I'm not extremely hopeful but I thought it was worth a few months to see how things panned out. . . If they do decide to change it might be a while before everyone figures it out! Link to comment Share on other sites More sharing options...
Guest megs29 Posted September 22, 2005 Report Share Posted September 22, 2005 So after reading UWOMED2005's post about Saskatchewan loans being interest-free during residency, I did a bit of research. I'm from SK but had never heard of this. I called SK loans and they said that if the school/residency program considers you a full-time student and will fill out a Confirmation of Enrollment form, your loans will remain interest-free. I then called the U of A post grad medical education office to see if they would do that. They said that they would certainly do that because, as residents, we are still considered students under the university and are registered as so. So thanks for the info, UWOMED2005! You've certainly saved me a lot of interest payments down the road (as long as the school I attend for residency will sign my form). Megs Link to comment Share on other sites More sharing options...
Guest UWOMED2005 Posted September 23, 2005 Report Share Posted September 23, 2005 Hmm intersting Megs. . . we are considered fulltime students at U Calgary (and pay a little bit of tuition!) but I had a conversation 3 weeks ago with U of C and they said they would NOT sign any forms. . . though I had a form from Ontario which I was advised to get filled out as "things were under review." I am taking a risk (ie +2.5%-5% extra interest while I sit on consolidating) but I feel it's worth it for a few months - I'd be losing out on $ and a lot of financial flexibility if I consolidated and found out 2 months later they were offering interest free status. . . But I don't think there is a correct answer here. Link to comment Share on other sites More sharing options...
Guest cracked30 Posted September 24, 2005 Report Share Posted September 24, 2005 Now, is it just the OSL or also the CSL that is being considered to be interest free. If I recall, the OSL had the higher interest rate. I think it was the prime plus 2.5 and the CSL was prime plus one. Link to comment Share on other sites More sharing options...
Guest megs29 Posted September 25, 2005 Report Share Posted September 25, 2005 Yeah, when I asked the lady at the post grad office, she seemed to know exactly what I was talking about and said that they do sign the letters for SK residents. Too bad U of C won't do it for you. Something to keep in mind when applying for residency... Megs Link to comment Share on other sites More sharing options...
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