emac2014 Posted May 6, 2011 Report Share Posted May 6, 2011 Hey everyone! So I'm an incoming student at McMaster, and it seems like a car is pretty key. I was wondering if you could all throw some financial input my way as to the best way to finance it while being mindful of OSAP etc. Obviously a huge purchase, and insurance will be enormous. So. I understand I can expect a large, interest free LOC (correct?). How does OSAP tend to go for med students? How much do people tend to get? Why do I want OSAP when I can throw stuff on my LOC (also interest free)? How does a car affect OSAP (will a new civic cause me to get no osap at all)? I really have no idea about any of this so ANY and all info on med school finances would be amazing! Thanks in advance! Link to comment Share on other sites More sharing options...
apache Posted May 6, 2011 Report Share Posted May 6, 2011 i'm not sure about ontario, but here: LOC is not interest free, it's prime, which i think is 3 percent right now. i get ~22 k a year from alberta gov, 2.5 being bursaries you want to put as much as you can on osap before you touch your bank loc, often when you graduate they forgive a portion of your loan if you've maxed the osap limit for your program, and you're not charged interest throughout school. when school is done if you have to start repaying osap just pay it off with your loc which would have the lower interest rate. an 18000 dollar car is an asset, and will definitely effect how much you get, you could argue you need a car in clerkship as an ed expense but it doesn't have to be a new civic. i bought a new car and registered it under my dad's name and insured it under my name, therefore, i don't legally own the car and don't have to report it to student loans. Hey everyone! So I'm an incoming student at McMaster, and it seems like a car is pretty key. I was wondering if you could all throw some financial input my way as to the best way to finance it while being mindful of OSAP etc. Obviously a huge purchase, and insurance will be enormous. So. I understand I can expect a large, interest free LOC (correct?). How does OSAP tend to go for med students? How much do people tend to get? Why do I want OSAP when I can throw stuff on my LOC (also interest free)? How does a car affect OSAP (will a new civic cause me to get no osap at all)? I really have no idea about any of this so ANY and all info on med school finances would be amazing! Thanks in advance! Link to comment Share on other sites More sharing options...
deeman101 Posted May 7, 2011 Report Share Posted May 7, 2011 Expect 20k from OSAP, 10.9 of which needs to be paid back. Thats if you don't have a car (which you "shouldn't"). Deduct the value of the car from that amount if your car is under your name. My suggestion is register it under someone else's name and insure yourself as the primary driver. Banks give LOC @ prime interest which right now is 3.25%. Btw buying a brand new civic may or may not be a smart decision, depending on how the monthly payments / financing interest / etc. works out. Most med students buy a used car. Link to comment Share on other sites More sharing options...
apache Posted May 7, 2011 Report Share Posted May 7, 2011 9.1 k doenst have to be paid back serious? Expect 20k from OSAP, 10.9 of which needs to be paid back. Thats if you don't have a car (which you "shouldn't"). Deduct the value of the car from that amount if your car is under your name. My suggestion is register it under someone else's name and insure yourself as the primary driver. Banks give LOC @ prime interest which right now is 3.25%. Btw buying a brand new civic may or may not be a smart decision, depending on how the monthly payments / financing interest / etc. works out. Most med students buy a used car. Link to comment Share on other sites More sharing options...
emac2014 Posted May 7, 2011 Author Report Share Posted May 7, 2011 I'm not sure if I'll buy new or used. I see it as a bit of a trade off of money saved vs. the warranty and less problems with the car. I could probably buy the car with cash, which would mean if it was under someone else's name I could potentially "shelter" that money from osap, which would be nice. Link to comment Share on other sites More sharing options...
Nobodycirclesthewagons Posted May 7, 2011 Report Share Posted May 7, 2011 I don't go to Mac, but is a car truly necessary before you hit pre-clerkship? Link to comment Share on other sites More sharing options...
emac2014 Posted May 7, 2011 Author Report Share Posted May 7, 2011 I don't go to Mac, but is a car truly necessary before you hit pre-clerkship? people make it seem like it is an almost-necessity. Because mac students get into clerkships/similar so quickly Link to comment Share on other sites More sharing options...
apache Posted May 7, 2011 Report Share Posted May 7, 2011 really depends on the layout of the city, if i was going to u of t, mcgill, or ubc i wouldn't drive since public transit is decent, but here, i'd rather not spend an hr and a half bussing it to the mall I don't go to Mac, but is a car truly necessary before you hit pre-clerkship? Link to comment Share on other sites More sharing options...
Epsilon Posted May 7, 2011 Report Share Posted May 7, 2011 Instead of buying a new vehicle for $18,000, buy something like a used Honda Civic with low kms for less than $10,000. It will last you for at least 7 to 8 years (at which point you'll be ready to upgrade anyway). Link to comment Share on other sites More sharing options...
rmorelan Posted May 7, 2011 Report Share Posted May 7, 2011 9.1 k doenst have to be paid back serious? Yeah you only have to pay back 3.5K for each term you are in. Since mac is all year (3 terms) you do get A LOT for free. The only problem is car as an asset issue. People often get around that though with a bit of creativity. Link to comment Share on other sites More sharing options...
emac2014 Posted May 7, 2011 Author Report Share Posted May 7, 2011 I heard about a value of car below which you don't have to tell osap? What is that value? Link to comment Share on other sites More sharing options...
rmorelan Posted May 7, 2011 Report Share Posted May 7, 2011 I heard about a value of car below which you don't have to tell osap? What is that value? 5000 I believe which really isn't that much I think. Still with the high tuition you are still given some protection as well to the affect of the asset reducing your total loan as well -> just because cost are so much higher than the maximum amount of osap. there is an online calculator that helps figure this out on the osap site Link to comment Share on other sites More sharing options...
medtech Posted May 7, 2011 Report Share Posted May 7, 2011 Anyone know the situation about OSAP if you decide to go to med school in Alberta? Would you have to pay OSAP back right after grad to avoid interest? Link to comment Share on other sites More sharing options...
gb35 Posted May 7, 2011 Report Share Posted May 7, 2011 About 20k from OSAP? Really? I've been out of high school more than 5 years (so didn't have to indicate my parents income), have no assets, no income, and I got a 14k estimate... And my tuition will be over 15k... Did they make a mistake? Link to comment Share on other sites More sharing options...
HBP Posted May 7, 2011 Report Share Posted May 7, 2011 About 20k from OSAP? Really? I've been out of high school more than 5 years (so didn't have to indicate my parents income), have no assets, no income, and I got a 14k estimate... And my tuition will be over 15k... Did they make a mistake? 20k only if you go to a school with 3 terms (Mac, Calgary). Otherwise 14k sounds about right (for Dal). Link to comment Share on other sites More sharing options...
HBP Posted May 7, 2011 Report Share Posted May 7, 2011 Anyone know the situation about OSAP if you decide to go to med school in Alberta? Would you have to pay OSAP back right after grad to avoid interest? If you do your residency in Ontario, your OSAP is interest free for the duration of your residency. If not, you have to pay it off (usually with your LOC), since your OSAP loan will be prime+2 (I believe) upon graduation. Link to comment Share on other sites More sharing options...
gb35 Posted May 7, 2011 Report Share Posted May 7, 2011 20k only if you go to a school with 3 terms (Mac, Calgary). Otherwise 14k sounds about right (for Dal). Thanks for the clarification! And am I right in thinking that I don't have to set up OSAP now, I could do it in August? Link to comment Share on other sites More sharing options...
alphagammabeta Posted May 7, 2011 Report Share Posted May 7, 2011 Just to clarify, med school still counts as an undergrad for osap right? I.e. So we should not be filling out the graduate form. Link to comment Share on other sites More sharing options...
rmorelan Posted May 7, 2011 Report Share Posted May 7, 2011 Just to clarify, med school still counts as an undergrad for osap right? I.e. So we should not be filling out the graduate form. that is right, med school is a UG program. Link to comment Share on other sites More sharing options...
deeman101 Posted May 7, 2011 Report Share Posted May 7, 2011 20k only if you go to a school with 3 terms (Mac, Calgary). Otherwise 14k sounds about right (for Dal). I got like 3k over my tuition and thats with a few $$ of earnings from the summer declared. The amount they give should at least cover tuition, even if you're going out of province. EDIT: McGill is considered 3 semesters / yr so they might give more based on that. Link to comment Share on other sites More sharing options...
rmorelan Posted May 7, 2011 Report Share Posted May 7, 2011 20k only if you go to a school with 3 terms (Mac, Calgary). Otherwise 14k sounds about right (for Dal). yeah exactly - osap is absolutely great but it won't really cover basically more or less tuition. Link to comment Share on other sites More sharing options...
Satsuma Posted May 8, 2011 Report Share Posted May 8, 2011 You should talk to your school's financial aid office. When I was a med student, for OSAP, you could have a car worth up to 5k before they would start deducting. So if you had a car worth 10k and you could get 15k OSAP, then in the end you get only 10k. However, at my med school, once you hit clerkship (so 3rd year of medschool) they wrote a letter on your behalf to OSAP stating that a car was essential. In that case, we were allowed to have a car worth up to 10k before they started deducting. Buy a car that is going to depreciate! ie. don't buy a Honda civic! Even if you get a preleased car, that is only 1-2 years old, the thing will have depreciated alot and should be in good enough condition. Or have it in someone else's name. fyi even if you just lease it it will still be an asset. Link to comment Share on other sites More sharing options...
HBP Posted May 8, 2011 Report Share Posted May 8, 2011 Thanks for the clarification! And am I right in thinking that I don't have to set up OSAP now, I could do it in August? Yeah, you can really do it anytime, except if you do it when school starts, you might get less funding. Link to comment Share on other sites More sharing options...
Nobodycirclesthewagons Posted May 8, 2011 Report Share Posted May 8, 2011 people make it seem like it is an almost-necessity. Because mac students get into clerkships/similar so quickly Fair enough. Thanks for the clarification! And am I right in thinking that I don't have to set up OSAP now, I could do it in August? I'm not sure if this applies to every school, but last year at UWO, I believe you had to get your OSAP approved by a certain date (June 30) in order to not be required to pay your whole tuition upfront. So it was a good idea to get your OSAP set up and approved quickly. Link to comment Share on other sites More sharing options...
naspec Posted May 8, 2011 Report Share Posted May 8, 2011 You should be able to buy a seventh-generation Honda Civic (2001 to 2005 models) in pretty good condition but maybe a little high on the mileage and have it come in under $5000 in the blue book. Link to comment Share on other sites More sharing options...
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