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Lines of Credit for Medical Students (Scotia is the best option)


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Honestly,    Thank you to pm101 for helping the mandem out. You all are so great. This sharing of information takes the power away from the banks and puts back in our hands. They were trying to play

I contacted RBC and scotiabank recently and this is a comparison: 1. Credit cards annual fee: both top of the line cards, mostly similar/comparable perks with Scotia having slight upper hand. Dif

true - it isn't the money though.   It is the entire point of this process - to make sure you are at a bank that has your back. Everyone will give you prime and enough money. You are trying to enter

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I just looked at my RBC credit line statement from this time in 2008.  Their prime rate at that time was 5.75%.   For fun you might want to calculate your monthly interest charge at that rate, just to get a sense of how much lighter debt carrying charges have gotten over the last few years.

 

hehehe, that is a tad scary - on a more serious note that is the big fear - that at some point they interest rates will rise and when they do some people will be caught out of position with respect to being able to pay things off.

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Hi Guys, 

 

I am looking into getting a LOC. I am looking for a health professional account manager in Toronto area  and was wondering if you could provide me with the contact info or the name of the account manager that you worked with if they were helpful and knowledgeable.

 

I am gathering info right now so it doesn't matter which bank your rep was from. I know that each bank provides a list on their website but I thought maybe I can take advantage of some previous experience so that I find someone who knows his/her stuff.

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Does anybody know which banks (ottawa area) will release funds from an acceptance letter or a confirmation that you have accepted your offer rather than "confirmation of enrolment"?

 

U of T said they won't provide confirmation of enrolment until August 31st but I was hoping to get the LOC earlier to help with moving expenses, replace my laptop, etc. RBC said that they can't release the funds until they receive that confirmation (so basically I won't have access to it until September). I know friends from other schools have had no problem getting LOCs before classes begun.

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Does anybody know which banks (ottawa area) will release funds from an acceptance letter or a confirmation that you have accepted your offer rather than "confirmation of enrolment"?

 

U of T said they won't provide confirmation of enrolment until August 31st but I was hoping to get the LOC earlier to help with moving expenses, replace my laptop, etc. RBC said that they can't release the funds until they receive that confirmation (so basically I won't have access to it until September). I know friends from other schools have had no problem getting LOCs before classes begun.

 

If you're able to ask for a confirmation letter from admissions (I was able to do this for UofC), then banks can move forward with an LOC. Have you spoken to the admissions office?

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If you're able to ask for a confirmation letter from admissions (I was able to do this for UofC), then banks can move forward with an LOC. Have you spoken to the admissions office?

 

I spoke to the admissions office and they said they can provide a letter confirming that I accepted my offer but RBC said that wasn't enough. They said it has to be an official confirmation of enrolment which apparently isn't until classes start

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TD released 85k right away with only acceptance letter, but they are also staggered in their amounts... You don't get the full amount up front.

 

I'm wondering if it's not necessarily bank-dependent but rather who you talk to... You can always tell them another bank would release right away and see what they say.

Thanks for the help! Does TD give prime?

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I spoke to the admissions office and they said they can provide a letter confirming that I accepted my offer but RBC said that wasn't enough. They said it has to be an official confirmation of enrolment which apparently isn't until classes start

 

oh that nonsense again - seem to crop up from time to time, and also seems to vary by city etc.

 

I believe Scotia as well will.

 

They are all at prime - or shortly they would have zero business. Market competition is a good thing :)

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Don't decide on your bank based on getting the money earlier, IMHO.

 

If someone in your family or a close friend can lend you a few thousand bucks for those expenses, that would be better. Even putting it on a credit card might be a better idea. It's not a good habit to get into, but it's only a few months. 

 

true - it isn't the money though.

 

It is the entire point of this process - to make sure you are at a bank that has your back. Everyone will give you prime and enough money. You are trying to enter the next phase - a real business relationship with a bank that potentially will follow you the rest of your life, and be of great service to you moving forward.

 

Don't chose a bank because they will give you the money immediately, but yeah chose a bank that will step up and meet your needs.

Edited by rmorelan
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Is there any advantage(s) of taking out a LOC vs. government student loans? 

 

absolutely - you want to max, max, max the government loans. Interest free, often with free bursary money.

 

then you want to use the LOC. In the end the LOC has a lower interest rate than many repayment plans for government loans. When the time comes you use the LOC to pay off the government loan prior to getting hit with the higher rate.

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Is there any advantage(s) of taking out a LOC vs. government student loans? 

 

What rmorelan said... and also that gov't loans aren't even going to cover the entirety of your tuition. You'll need an LOC (unless you win a huge scholarship/bursary or have significant parental support).

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absolutely - you want to max, max, max the government loans. Interest free, often with free bursary money.

 

then you want to use the LOC. In the end the LOC has a lower interest rate than many repayment plans for government loans. When the time comes you use the LOC to pay off the government loan prior to getting hit with the higher rate.

So take out a LOC at the end of the government loans (i.e. end of med school), and then just pay it back altogether? 

 

What rmorelan said... and also that gov't loans aren't even going to cover the entirety of your tuition. You'll need an LOC (unless you win a huge scholarship/bursary or have significant parental support).

U of A's tuition is $12,000 (+$1000 in other fees). Pretty sure government loans cover that amount. 

 

Thanks a lot for your help! 

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TD released 85k right away with only acceptance letter, but they are also staggered in their amounts... You don't get the full amount up front.

 

I'm wondering if it's not necessarily bank-dependent but rather who you talk to... You can always tell them another bank would release right away and see what they say.

I went to talk to TD today. The advisor had no idea what she was doing. I ended up telling her more about TD's med student LOC than she could tell me. Guess I won't be banking with them... Too bad since they were my bank for many years.

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I went to talk to TD today. The advisor had no idea what she was doing. I ended up telling her more about TD's med student LOC than she could tell me. Guess I won't be banking with them... Too bad since they were my bank for many years.

 

ok, that sucks.

 

As a reminder of sorts I suppose - always, always, always make sure you are meeting with the professional student loan manager. Not just some regular loan officer. Each bank has one, and if you are not talking to that person you are talking to the WRONG person. You cannot just walk in the bank.

 

Basically ask prior to meeting (seriously ask):

a) how many professional student loans for medical school do you manage personally.

b ) right now tell me what the interest rate and max amount is for your professional med student loan.

 

They should IMMEDIATELY know the answers to both (no looking stuff up etc) and the answers should be a) a lot more than a few and b ) prime and 200K+. If they don't = wrong person.

 

While things loans are important to us in truth they are quite overall rare for the bank to deal with - thus there are often not really a good way to funnel the students to the right person - which probably is not at your branch. So they make mistakes. Then you have a problem.

 

I had the exact - and I mean exact - same problem with I originally went to my home TD branch - the bank I used for many, many years in June after I got my acceptance. It was horrible - and clearly the person didn't know what was going on (max loan was 30K, at prime +3, no free student stuff - and that was after 1 hr of her calling people and looking up things on their computer). I see then haven't fixed it in the past 6 years.

Edited by rmorelan
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