Steve-0 Posted March 6, 2012 Report Share Posted March 6, 2012 I have a LOC from Royal Bank. Looking at the agreement I signed, it says that I have an interest rate equal to prime + 0% when I am a full-time student but that it can be changed to a max of prime + 5% when I am no longer a student. Do they consider being a resident a student? I believe you pay tuition (some small amount) as a resident and are technically as student. Is this right? Link to comment Share on other sites More sharing options...
Lactic Folly Posted March 6, 2012 Report Share Posted March 6, 2012 Residents have dual employee and student status - we do pay registration fees to the postgraduate office. You'd need to check with RBC for their definition though. Link to comment Share on other sites More sharing options...
future_doc Posted March 6, 2012 Report Share Posted March 6, 2012 prime plus 5% or anything close is not competitve and if the bank tried it, it would lose you as a customer. If I remember correctly, normally the int. rate remains until we pay it off. Link to comment Share on other sites More sharing options...
NLengr Posted March 6, 2012 Report Share Posted March 6, 2012 You keep student status as a resident. Prime rate. You need to pay the interest off each month. Link to comment Share on other sites More sharing options...
rmorelan Posted March 6, 2012 Report Share Posted March 6, 2012 Residents have dual employee and student status - we do pay registration fees to the postgraduate office. You'd need to check with RBC for their definition though. Is this true at all school? The entire OSAP interest forgiveness thing if you stay in Ontario makes no sense if all residents are also still full time students - you wouldn't be paying interest anyway Link to comment Share on other sites More sharing options...
Lactic Folly Posted March 6, 2012 Report Share Posted March 6, 2012 Ah, it depends on what you mean by "student" - as I said, for practical purposes you will need to go by what OSAP, RBC, etc. say I was referring to the dual employee and university trainee status in the PAIRO contract: http://www.pairo.org/Content/Default.aspx?pg=1074 We would not be full-time students, but I do have a "special student" ID card that allows me certain student privileges. Link to comment Share on other sites More sharing options...
NLengr Posted March 6, 2012 Report Share Posted March 6, 2012 Is this true at all school? The entire OSAP interest forgiveness thing if you stay in Ontario makes no sense if all residents are also still full time students - you wouldn't be paying interest anyway I spent months digging into this so I know it pretty good now. From a Canada Student Loans perspective you are NOT a student. You are required to start to make payments on your loan. If money is short, re-payment assistance or interest only payments may be applied for. The only provinces where this is slightly altered is Quebec and Alberta because they do not have integrated federal-provincial loans. From a university and Canada Revenue Agency perspective you ARE a student. Therefore you get the privileges of a student at the university (taking out library books etc.), you also get a T2202A, which lets you file for tuition credits when you do your tax return. Link to comment Share on other sites More sharing options...
rmorelan Posted March 6, 2012 Report Share Posted March 6, 2012 I spent months digging into this so I know it pretty good now. From a Canada Student Loans perspective you are NOT a student. You are required to start to make payments on your loan. If money is short, re-payment assistance or interest only payments may be applied for. The only provinces where this is slightly altered is Quebec and Alberta because they do not have integrated federal-provincial loans. From a university and Canada Revenue Agency perspective you ARE a student. Therefore you get the privileges of a student at the university (taking out library books etc.), you also get a T2202A, which lets you file for tuition credits when you do your tax return. Interesting! So do you pay any tuition? How much is this? Are you full time for tax purposes or part time, ie what is actually on this T2202A for the monthly credit? Link to comment Share on other sites More sharing options...
NLengr Posted March 6, 2012 Report Share Posted March 6, 2012 Interesting! So do you pay any tuition? How much is this? Are you full time for tax purposes or part time, ie what is actually on this T2202A for the monthly credit? It's around $500 for most universities. You get credit for the tuition, plus 12 months of full time school. I believe in Ontario it gives you around $950 dollars back on your taxes. So you gain around $450 bucks or so in the end. Plus with a student card you can still qualify for student discounts on tickets and what not. Link to comment Share on other sites More sharing options...
Jochi1543 Posted March 6, 2012 Report Share Posted March 6, 2012 From a Canada Student Loans perspective you are NOT a student. You are required to start to make payments on your loan. FFFFFFFFFFFF so I should be planning to pay $10,000/yr for government loans during residency, too? I was hoping to just focus on my LOC. But considering the interest rates on government loans, I might be better off paying them off first. BLAH. Link to comment Share on other sites More sharing options...
leviathan Posted March 6, 2012 Report Share Posted March 6, 2012 The banks definitely consider you a student if you're a resident or an 'articling' law graduate. This is the first I've heard that Canada student loans does not feel the same. That sucks... Link to comment Share on other sites More sharing options...
rmorelan Posted March 6, 2012 Report Share Posted March 6, 2012 FFFFFFFFFFFF so I should be planning to pay $10,000/yr for government loans during residency, too? I was hoping to just focus on my LOC. But considering the interest rates on government loans, I might be better off paying them off first. BLAH. Just pay them off with the loc, overall you save interest. Link to comment Share on other sites More sharing options...
Jochi1543 Posted March 7, 2012 Report Share Posted March 7, 2012 Just pay them off with the loc, overall you save interest. Gonna have to raise my limit then....blarg. Link to comment Share on other sites More sharing options...
rmorelan Posted March 7, 2012 Report Share Posted March 7, 2012 Gonna have to raise my limit then....blarg. Yeah I know - not fun. Still it is better than a lot of the non prime interest rates for sure. Plus no fixed payments often helps. Link to comment Share on other sites More sharing options...
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