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Financial Advice For Unmatched Students


Mdtobe2015

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Hello, 

I'm graduating from a Canadian Medical School this May, and was unmatched in CaRMS this year.  Obviously has been a devastating couple of days for me and my family.  As I've been looking at my options, matching to 2nd round seems to be the first priority.  If that fails, I can do a Masters degree through my university and get paid to tutor PBL.  But I was wondering about my financial situation since nobody I've spoken to has been very helpful in that regard.

Assets: Car worth $20k

Government Debt: $50k

Line of Credit: $130k

 

Now if I match in 2nd round, all is well.  But if I have to wait a year and do a Masters degree, one problem comes up.  The line of credit goes into repayment.  I won't have to pay back the principle for 12 months, just the interest (probably $300/month).  And I could probably get more government loans to cover tuition for the Masters program (340 week lifetime limit, of which I've used around 200).  But without the line of credit, I will have a hard time covering expenses for me and my family, like rent, food, utilities.  I'll probably have to sell my vehicle and downgrade to a much cheaper one.  The year will be very tight. And if I don't match to a residency by next year... I shudder to think what will become of me and my family.

Any advice would be appreciated.

 

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If you can extend your program (hence delay graduation), this won't be an issue. I don't know whether that's feasible at your school, but there is certainly precedent. 

 

yeah exactly. Plus what really is going into repayment? - the LOC? The masters will handle the rest as the government loans will be frozen. Other students I know that did a masters prior to residency still had the LOC kept open until residency started. I don't think they would shut that down on you. That gives you with a standard 250K LOC over 100K still to work with in terms of liquidity.

 

sucks not matching and I hope the following year works out for you. Depending on what specialty you are going for next year you odds of match can be very, very high.

 

controlling the expense will still be important simply because residents don't earn that much and the interest payments will be a issue to deal with. you will be on the higher end of the debit cycle I suppose with the extra time etc. Still it is all doable.

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Ok, first I've transferred my vehicle to my parents name, which should allow me to claim more government loans for the year.

A friend then suggested that I withdraw all I can from my LOC before it freezes and deposit into a savings account, which would allow me to keep access to the remaining funds for the year while just paying off the interest on the LOC.  Sounds reasonable?

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Ok, first I've transferred my vehicle to my parents name, which should allow me to claim more government loans for the year.

 

A friend then suggested that I withdraw all I can from my LOC before it freezes and deposit into a savings account, which would allow me to keep access to the remaining funds for the year while just paying off the interest on the LOC.  Sounds reasonable?

 

are they even going to freeze it at all? I would find that out first.

 

couple of questions because is a strange situation - as far as I know for unmatched people they keep an eye on you but don't lock everything down. If it is locked down you would have to pay back interest and principle on their plan as you are in repayment, and the big question is if they unlock it when you get back into residency (you don't want to be paying off both principle and interest in residency and not have access to the LOC. That would not be fun). Still have a hard time believing they would do that - and if they did I would shop banks at that point.

 

If they do lock it down they are pretty much compelling you do what you are suggesting.

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