LOC Limit -Help!

[anticipate]

Alright. I'm set to graduate in 2013. But I need more money. I won't be able to pay for interviews or actually rent in January without it.

 

I'm in Vancouver. I currently have a LOC maxed out at $200,000.

 

Where are your LOC's? What is your limit? I heard a rumor that RBC limit is now $250,000. Is this true?

 

Cheers!

[rmorelan]

Alright. I'm set to graduate in 2013. But I need more money. I won't be able to pay for interviews or actually rent in January without it.

 

I'm in Vancouver. I currently have a LOC maxed out at $200,000.

 

Where are your LOC's? What is your limit? I heard a rumor that RBC limit is now $250,000. Is this true?

 

Cheers!

 

Hi there - first off ouch! I am not sure what happened but usually most people don't go anywhere near that point (just don't want to scare anyone looking into paying for their medical education).

 

Yes RBC can go up to that level, you better go see them asap (with the holidays etc there will be delays).

 

best of luck!

[astudentis]

1. yes rbc has 250,000 limit

 

2. in order to be approved for that extra full 50K, you need to go with balance sheet, the in/outs estimated. That can take a few weeks.

 

3. in order to get approved for 245,000 - that can be done in a matter of a few days w/o the balance sheets, but expect holiday delays starting next week for sure

 

Good luck, happy holidays

[maybeadoc]

Good luck and please let us know!

 

Also Im in 1st year and would be interested to know if they go above the limits ie if limit is 250k, and you are maxed at 250k would they give you more?

 

 

Any first hand experience??

[rmorelan]

Good luck and please let us know!

 

Also Im in 1st year and would be interested to know if they go above the limits ie if limit is 250k, and you are maxed at 250k would they give you more?

 

 

Any first hand experience??

 

They won't in my experience. It is a hard limit for each bank. RBC is 250K and scotia will let you increase it in residency to 275K but there are limits. I ran into a couple of very foolish people that ran up to their limits by buying things they had little business buying in med school (brand new BMW, all out 12 week vacations in the summer for instance). The banks can and do say no.

 

That all being said it skill amazes me that people get even close to that point - I mean in Ontario you can get 200-250K LOC plus (17x3+21)K OSAP (for 4 year schools, with over 1/2 of that forgiven) + bursaries, scholarships, family....

 

It is all about twice what you need to pay for everything. There may be some very unusual things going on but really we are very lucky to have situation where money is not really a barrier to entry to medical school.

[maybeadoc]

Thanks! I have a budget including bursaries and govt loans which leaves me with 150k in my loc at the end so lots of room at this point- i was just wondering!!

[rmorelan]

Thanks! I have a budget including bursaries and govt loans which leaves me with 150k in my loc at the end so lots of room at this point- i was just wondering!!

 

no worries! It is a valid question - everyone should know the rules

[RbcUBC.Med/Dental.LOC.rep]

Alright. I'm set to graduate in 2013. But I need more money. I won't be able to pay for interviews or actually rent in January without it.

 

I'm in Vancouver. I currently have a LOC maxed out at $200,000.

 

Where are your LOC's? What is your limit? I heard a rumor that RBC limit is now $250,000. Is this true?

 

Cheers!

Hi Anticipate,

 

The current limit RBC limit is $250k. Whenever we are applying for an increase in the limit, we do have to prove the need to our adjudicator colleagues. This is ususlly done by a demonstrated need. From what you have said, it should be ok.

 

In regard to exceeding the $250k cap, it is on a case by case situation where we will have to evaluate the merits. for example, if you are continuing onto a specialization, we probably will accommodate the extra funding. If you want to use the money for a post med school de-stress trip around the world, its most likely a no.

 

hope this helps and let me know if you need more information,

 

Da Ke Zhao

Student Lending Coordinator

RBC Wesbrook Village Branch

604-221-5736

da-ke.zhao@rbc.com

[rmorelan]

Hi Anticipate,

 

The current limit RBC limit is $250k. Whenever we are applying for an increase in the limit, we do have to prove the need to our adjudicator colleagues. This is ususlly done by a demonstrated need. From what you have said, it should be ok.

 

In regard to exceeding the $250k cap, it is on a case by case situation where we will have to evaluate the merits. for example, if you are continuing onto a specialization, we probably will accommodate the extra funding. If you want to use the money for a post med school de-stress trip around the world, its most likely a no.

 

hope this helps and let me know if you need more information,

 

Da Ke Zhao

Student Lending Coordinator

RBC Wesbrook Village Branch

604-221-5736

da-ke.zhao@rbc.com

 

What are you thoughts about increasing it within the medical school training itself? Say prior to the start of year 4 - simply because the student exceeded the original loan amount.

[RbcUBC.Med/Dental.LOC.rep]

Hi rmorelan,

 

The tuition cost of medical/dental school are known, they are posted on every school's website. And the living expenses are fairly well known also. If you do apply for an increase while still in school, we need to be made aware why the $250k was not enough.

 

For example, if you have people who are financially dependent on you, this is a pretty easy way to justify an increase.

 

The bottom line is this, we want to continue funding your education because of

1)this is a un-secured credit line and we the bank are already in the "hole" with student who already used some of the money. if the student don't finish school, the chances of us getting paid back is less, so as long as the ask is not too out of line (80k MB or a Vegas everything on Red trip) we will try our best to make it happen.

 

2)professional students are the future of this country, we going to need doctors and dentist in an ongoing basis. It really does nobody any good if students can't graduate due to financial reasons.

 

 

Da Ke Zhao

Student Lending Coordinator

RBC Wesbrook Village Branch

604-221-5736

da-ke.zhao@rbc.com

[anticipate]

Dear All,

Thank you very much for your responses and comments.

 

I agree about not scaring incoming students. So I will say that I believe that I do have unusual circumstances that make my situation different.

 

I have other friends who lived at home and ate their parents food and spent very little on their line of credit.

 

Da Ke Zhao I will call you tomorrow to make an appointment to discuss my personal circumstances.

 

Thank you,

Anticipate.

[tooty]

I bumped my RBC limit to 250k without a problem. Took a phone call.

[apache]

wow... please consult a legal text, and seriously, point one may be true, but wow, you know about the mp's targeting predatory lending and you know loans are made for purposes serving point one, plus one i'll make... you make money off debt, but wow, i can't believe you posted this publically... on an aside, banks should be weary to violate contracts too... ed costs... lol, i won't go into it... but, giving you the benefit of the doubt, let's say others at rbc are far less scrupulous, or well, far far worse than unethical... and not all consumers are ignorant of the law... not you in partic, but other bankers

 

Hi rmorelan,

 

The tuition cost of medical/dental school are known, they are posted on every school's website. And the living expenses are fairly well known also. If you do apply for an increase while still in school, we need to be made aware why the $250k was not enough.

 

For example, if you have people who are financially dependent on you, this is a pretty easy way to justify an increase.

 

The bottom line is this, we want to continue funding your education because of

1)this is a un-secured credit line and we the bank are already in the "hole" with student who already used some of the money. if the student don't finish school, the chances of us getting paid back is less, so as long as the ask is not too out of line (80k MB or a Vegas everything on Red trip) we will try our best to make it happen.

 

2)professional students are the future of this country, we going to need doctors and dentist in an ongoing basis. It really does nobody any good if students can't graduate due to financial reasons.

 

 

Da Ke Zhao

Student Lending Coordinator

RBC Wesbrook Village Branch

604-221-5736

da-ke.zhao@rbc.com

[maybeadoc]

So how did it turn out, anticipate??

[apache]

im betting they give him whatever he needs to finnish, as long as he gets the md, the more debt the better

 

So how did it turn out, anticipate??

[RbcUBC.Med/Dental.LOC.rep]

im betting they give him whatever he needs to finnish, as long as he gets the md, the more debt the better

Hi muse87

 

Sorry for the late reply, I was on sick leave.

 

You raise a very good point about predatory lending, and I think we need more of these conversations. I graduated from UBC with student loans and it took me a few years to pay off. So I think I am in a position to say that no debt is a million times better than even a dollar of debt.

 

However, we also have to look at the cost of education for medical and dental students. Before bank lending programs and the tuitions like the ones we have now, it was very likely to have parents put up primary residence/retirement account as collateral in order to finance med/dental school and then have the future doctor service the mortgage/loan once he/she is financially able.

 

I don’t know about other banks, but I am not on a commission, so hopefully I can offer a somewhat objective advice on student loans. But that is for you to decide.

 

Since I am on this forum, may as well have something useful for your guys. This is the checklist I give to students who speak to me about bank student loans. A checklist I wish I had when I was a student.

 

1) Do your research online

2) Draw up your own budget

3) Shop around (don’t just walk into a bank and sign)

4) Don’t do the application during the first meeting, just have a discovery session about the loan program

5) Talk to family/friends (or even better, have them join you in the meeting)

6) Have the bank representative go over every SINGLE page of the loan contract with you.

7) Only sign when you are absolutely comfortable. Never be pressured into signing.

 

I hope this has been helpful for you guys,

 

Da Ke Zhao

Student Lending Coordinator

RBC Wesbrook Village Branch

604-221-5736

da-ke.zhao@rbc.com

 

p.s.

 

I tell my students that I am a pain to deal with as I will call/drag them in at least once a year to do a budget to make sure the money is spent wisely.