tberry3 Posted June 2, 2013 Report Share Posted June 2, 2013 Hi guys, Maybe it's just late but I'm finally filling out the payment arrangement form and I have a question about payment in full vs. the installment plan. I can't see any possible reason to choose the installment plan, so maybe I'm missing something - let me know if I am! Basically, I'm planning on using OSAP to pay for the majority of my tuition and then using my line of credit for the rest. So, I have two options: 1. Payment in full - use my line of credit to pay the entire $25,000 in September. As soon as I get my OSAP funding, use it to pay off my LOC as much as possible. 2. Installment plan - use my line of credit to pay $12,500 in September; pay the rest in January, with 14.4% annual interest added in the meantime. Apply OSAP funding to LOC/tuition as soon as I receive it. Now, this is where I'm confused - the LOC has an interest rate of 3% so I can't figure out why anyone would choose option 2 (where you're basically opting to pay a 14.4% interest rate on half your tuition instead). Am I missing something here or is it just a really easy choice? Link to comment Share on other sites More sharing options...
w_robin Posted June 2, 2013 Report Share Posted June 2, 2013 Hi guys, Maybe it's just late but I'm finally filling out the payment arrangement form and I have a question about payment in full vs. the installment plan. I can't see any possible reason to choose the installment plan, so maybe I'm missing something - let me know if I am! Basically, I'm planning on using OSAP to pay for the majority of my tuition and then using my line of credit for the rest. So, I have two options: 1. Payment in full - use my line of credit to pay the entire $25,000 in September. As soon as I get my OSAP funding, use it to pay off my LOC as much as possible. 2. Installment plan - use my line of credit to pay $12,500 in September; pay the rest in January, with 14.4% annual interest added in the meantime. Apply OSAP funding to LOC/tuition as soon as I receive it. Now, this is where I'm confused - the LOC has an interest rate of 3% so I can't figure out why anyone would choose option 2 (where you're basically opting to pay a 14.4% interest rate on half your tuition instead). Am I missing something here or is it just a really easy choice? As far as I understand, it's a really easy choice. You might get luck asking on the FB group. Link to comment Share on other sites More sharing options...
McMasterHopeful Posted June 2, 2013 Report Share Posted June 2, 2013 I can't figure out why anyone would choose option 2 (where you're basically opting to pay a 14.4% interest rate on half your tuition instead). Am I missing something here or is it just a really easy choice? You are correct in your assumption. It is an option for someone w/o a 3% line...although I can't imagine who that would be. Use the LOC, and put the OSAP into it for max savings. Link to comment Share on other sites More sharing options...
osteogeek Posted June 2, 2013 Report Share Posted June 2, 2013 My plan is to do #1 - pay in full with my LOC, and then apply my September and January OSAP payments back onto my LOC to minimize the interest I'm paying. Also, I haven't filled out my forms yet, so don't worry about being behind! They're not due until June 30th, plenty of time left. Link to comment Share on other sites More sharing options...
tberry3 Posted June 2, 2013 Author Report Share Posted June 2, 2013 My plan is to do #1 - pay in full with my LOC, and then apply my September and January OSAP payments back onto my LOC to minimize the interest I'm paying. Also, I haven't filled out my forms yet, so don't worry about being behind! They're not due until June 30th, plenty of time left. Ha - actually when I said "maybe it's just late" I meant that it was 1 in the morning and maybe I was just doing the math wrong in my head . Good to hear that I was thinking along the right lines then - glad to have that LOC to help with this stuff! Link to comment Share on other sites More sharing options...
shady Posted June 2, 2013 Report Share Posted June 2, 2013 In my undergrad we had the option of deferring the fees (interest free ofc) until we get paid from OSAP. Is this not an option at Mac? Link to comment Share on other sites More sharing options...
osteogeek Posted June 3, 2013 Report Share Posted June 3, 2013 ^Doesn't seem so. I did my undergrad at U of T and it was the same - interest-free deferral. At Mac though, it looks like the only option is the 14.4% annual interest if we don't pay in full. If I'm wrong though I'd love to know how to defer! Link to comment Share on other sites More sharing options...
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