Scotiabank New LOC limit for Med/Den

[Jochi1543]

Thats a valid point! There would be specific cases where the extra money would be useful. Wonder what fraction of students that sort of extra need would apply to?

 

Very few. I was shocked to find out that 25% of U of A med students graduate without a dime in loans. I think I will be in the most debt-loaded 10%, with at least 120K in the hole for sure.

[rmorelan]

Very few. I was shocked to find out that 25% of U of A med students graduate without a dime in loans. I think I will be in the most debt-loaded 10%, with at least 120K in the hole for sure.

 

What is the source of funding - parents, scolarships? It's not like there is a lot of work opportunities while we are training

[Jochi1543]

What is the source of funding - parents, scolarships? It's not like there is a lot of work opportunities while we are training

 

Parents....they've been doing research on our class makeups for a while and only 5% of students come from low SES backgrounds.

[leviathan]

Apparently the best possible rate right now is prime + 1%, but I'm still at prime.

[future_doc]

Please correct me if I am wrong - I am under the oiompression that prime is standard for medical student loans and that prime remains for the years it takes to pay back this student loan as a physician. So, it would then be you and all med students.

[leviathan]

Please correct me if I am wrong - I am under the oiompression that prime is standard for medical student loans and that prime remains for the years it takes to pay back this student loan as a physician. So, it would then be you and all med students.

It's supposed to be prime, but apparently in the fine print all the LOCs say that it is subject to change with 90 days notice. However, they haven't changed it yet to prime + 1, so I'm hoping it stays that way.

[future_doc]

Well, the devil is in the details. See the original post. Med student applicants should then read the fine print and have them cross out the subject to change clause - and competitive forces will force the bank to do so or lose the business! Thereofore, if the LOC is in place, you ask them to remove that clause or you will go elsewhere. No? You are in the driver's seat, they want your business, they need you more than you need them!

[rmorelan]

Parents....they've been doing research on our class makeups for a while and only 5% of students come from low SES backgrounds.

 

Yeah that bias still exists in general unfortunately. Glad I am bucking the trend

[Ollie]

Does anyone know if you can roll your LOC into your mortgage?

 

I will be going in to repayment in 2011. Our mortgage is a variable rate at prime, so I'm thinking that if they try to increase my rate I'll just tell them to take off and I'll roll it in to the mortgage and increase the mortgage payments.

 

Also, if it makes any of you feel better, I have paid back $16,000 (about $11,000 principle and $5,000 interest) in the last 18 months. I do have my husband's salary contributing, but we also paid for a wedding and saved quite a bit for our mortgage downpayment. So it's definitely possible to make a dent in the LOC while a resident.

[Jochi1543]

Also, if it makes any of you feel better, I have paid back $16000 (about $11,000 principle and $5000 interest) in the last 18 months. I do have my husband's salary contributing, but we also paid for a wedding and saved quite a bit for our mortgage downpayment. So it's definitely possible to make a dent in the LOC while a resident.

 

That's comforting, considering I expect to graduate with at least $100K. Actually, more than that considering I already had over 10K from before med and our tuition's due for an increase.

[future_doc]

I would think that competitive forces drive it all, so if you have another bank in the bag willing to give you greater access tof unds, your present bank should be willing to meet their better conditions. It would seem logical that you would pay off your old bank with funds furnished by the new bank so that they are behind you and you are dealing with just one bank (plus I imagine the new bank would insist upon this).

[webshy]

A few things. Does anyone else have caps on how much they can spend per year on the LoC? I don't know why one was placed on mine but how easy is it to remove it?

 

It depends which bank you are with. MD Management has non-negotiable caps of $50K per year, which is difficult if you have pre-existing debt. When I tried to get the cap increased during first year, I was told that they would issue me a second LOC, but not at prime, for the additional funds. I went with another bank (TD), where I have a cap, but can increase it at any time (and it was higher than $50K for first year).

 

Elaine

[future_doc]

interesting that MD Management wouod act in manner that is not competitiv e nor in best interests of client. I can understand why, to protect the client student in a sense, they may impose an annual limit - but then they get around it at a dearer cost to the client and this is nonsense in the competitve environment that exists. Students need to be informed before signing up anywhere.

[Mourning Cloak]

Just talked to Scotiabank. We currently have the Student Professional LOC or whatever it's called, the interest rate of which is at prime.

 

Twelve months after you finsh your residency, the student professional LOC transforms into a professional LOC, the interest rate of which is currently prime + 1.5%.

[future_doc]

Interesting, paks54 from Scotia saysd the exact opposite.....hmm and 1.5% above prime is unreasonable as it is non-competitive.

 

This goes to show that the devil remains in the details, the fine-print is most important and one needs to shop around. Also0, it is possible to change banks in midstream and this approach should not be forgotten.

[rmorelan]

Interesting, paks54 from Scotia saysd the exact opposite.....hmm and 1.5% above prime is unreasonable as it is non-competitive.

 

This goes to show that the devil remains in the details, the fine-print is most important and one needs to shop around. Also0, it is possible to change banks in midstream and this approach should not be forgotten.

 

But the rate lasts until 12 months after your residency - that sounds pretty good to me - other places won't even guarantee prime during residency at all.

[future_doc]

but the OP from Scotia said something entirely different. And for anybody with excellent credit to be paying 1.5% above prime is incredibly high, especially when there are competitive forces at play whereby this is excessive in the marketplace I believe

[future_doc]

Yes, it is, but the rate of interest is both excessive and unnecessary. As future physicians we need to be commerically astute lest we be easy pickings for those in commerece who will take advantage of us.

[rmorelan]

Prime at 1.5 when you are 12 months out of residency is still better than prime + 1 during residency. Chances are our peanut salary won't be doing much, until we are at least 3-4 years into residency.

 

If my math is correct our effective salary will actually be higher in the first 2 years than the later ones (assuming you even have any later ones as of course family doctors will be right into practice at that point) - reason being we will likely have a massive tuition tax credit which we can pull forward to counteract any tax payable. We have 70,000ish (varies of course by school) tuition which we get eventually right off. This assumes no moonlighting later residency years of course where you can start ramping up the income in theory

 

I guess that means that if I chose to live not to excessively - I mean I will be residency, not exactly a lot of time even to go off deep end expense wise - potential I could start into the LOC if I felt the need to be financially responsible

[Dr.Henderson]

I would assume the LOC is still contingent upon credit rating etc, have you established good credit?

[paks54]

Thats correct one year after you finish either residency or fellowship you start to repay the principal outstanding on the LOC

 

 

....i was always curious about the 'you don't have to pay till you are done residency' part.

 

you do get charged for interest right during residency? its just that you don't start paying "base loan + interest" till after residency right?

[paks54]

Scotiabank just increased the limit to 200K but they can also get you a higher limit if you go into a specialty program 3+years.

 

Soo...Scotiabank declined me for 200k. I have no idea why..did anyone else know of anyone who got declined? Should I have done something in particular to prevent this from happening?

[paks54]

Scotiabank still carries the Prime plus zero into the repayment of you loan until it is paid off . that is as long as you repay as agreed.

 

QUOTE=rmorelan;409259]If my math is correct our effective salary will actually be higher in the first 2 years than the later ones (assuming you even have any later ones as of course family doctors will be right into practice at that point) - reason being we will likely have a massive tuition tax credit which we can pull forward to counteract any tax payable. We have 70,000ish (varies of course by school) tuition which we get eventually right off. This assumes no moonlighting later residency years of course where you can start ramping up the income in theory

 

I guess that means that if I chose to live not to excessively - I mean I will be residency, not exactly a lot of time even to go off deep end expense wise - potential I could start into the LOC if I felt the need to be financially responsible

[Mourning Cloak]

Scotiabank still carries the Prime plus zero into the repayment of you loan until it is paif\d off . that is as long as you reapy as agreed.

 

That's also what I was told. We're with Scotiabank.

 

My husband finished his residency a little while ago, and this is what happened: for 12 months following finishing the residency, the LOC continued to function as usual.

 

After 12 months, the LOC froze - you couldn't use it anymore. You negotiated a repayment schedule, and you had to pay it down according to this agreement. If you still needed a LOC, they were happy to give you another product (though generally they were not offering prime + 0%).

 

For us, the interest rate on the LOC remained at prime + 0% while we were repaying it, but they won't GUARANTEE it will stay there. Banks always reserve the right to change the interest rate on their products (as many banks have done this year, including CIBC - I switched from CIBC because of this).

[dextor]

anyone know the info on the rep. for med student loc's in winnipeg?