jdog101 Posted March 27, 2015 Report Share Posted March 27, 2015 Hi there! I know this has been discussed previously, but I just want to clarify a final time. Is there any reason I shouldn't pay off my BC-combined student loan with my LOC? I am not going to do rural family medicine. Are there any other types of grants/assistance with repayment that would warrant keeping my student loan? Thanks for your help. Link to comment Share on other sites More sharing options...
JohnGrisham Posted March 27, 2015 Report Share Posted March 27, 2015 Hi there! I know this has been discussed previously, but I just want to clarify a final time. Is there any reason I shouldn't pay off my BC-combined student loan with my LOC? I am not going to do rural family medicine. Are there any other types of grants/assistance with repayment that would warrant keeping my student loan? Thanks for your help. From my understanding looking at the LOC process and talking to banks - they all recommend it and couldn't think of any financial reason not to. The only thing I could think of is if you need that buffer on your LOC for emergency short-term expenses. But you can always approach your bank for that kind of issue. The difference in interest rates makes it a no brainer to transfer it. But let us know if you find something out! Link to comment Share on other sites More sharing options...
ellorie Posted March 27, 2015 Report Share Posted March 27, 2015 The financial talks I've been to this year, as well as my meeting with MD financial, all seemed to suggest that even though government loan interest is tax deductible, you'll save the most money by consolidating it - only reason would be if you also have a big balance on your LoC already and would want to leave a buffer on it for emergencies. If you do residency in Ontario they will pay your student loan interest in exchange for a 5 year ROS. But I'm not going to do that because it limits my mobility in exchange for not a lot of gain, in my situation. Link to comment Share on other sites More sharing options...
JohnGrisham Posted March 27, 2015 Report Share Posted March 27, 2015 The financial talks I've been to this year, as well as my meeting with MD financial, all seemed to suggest that even though government loan interest is tax deductible, you'll save the most money by consolidating it - only reason would be if you also have a LOT on your LoC and would want to leave a buffer on it for emergencies. If you do residency in Ontario they will pay your student loan interest in exchange for a 5 year ROS. But I'm not going to do that because it limits my mobility in exchange for not a lot of gain, in my situation. That is brutal - they are actually thinking people would get locked into an ROS for just interest? Link to comment Share on other sites More sharing options...
ellorie Posted March 27, 2015 Report Share Posted March 27, 2015 Well, the ROS is anywhere in Ontario (even Toronto) doing anything you want - so on some level if you know you're tied to Ontario (which a lot of people do) it's sort of free money for doing what you'd do anyway. It would just be hard if you were in a specialty that's tight for jobs and you might have to move for work. That said, the advisor I spoke to at MD Financial said that residents who have signed up for the program have found it to be a lot of frustrating red tape and not worth it, so even though I am thinking I will likely stay in Ontario, I'm not planning to sign on. Link to comment Share on other sites More sharing options...
ellorie Posted March 27, 2015 Report Share Posted March 27, 2015 Look into if you have a grace period though - some of the student loans have a no interest grace period and it's worth waiting until the last possible (interest-free) moment to pay them off. In Alberta, the provincial portion stays interest free throughout residency because they consider us students - which is nice. Link to comment Share on other sites More sharing options...
Radiologist in Training Posted April 28, 2015 Report Share Posted April 28, 2015 This is my own situation. I plan to pay of my loans immediately. I am a UBC student with approximately $50 student loans. I will be moving to Ontario for 5 year residency and I am able to pay the loan off directly (ie not from LOC). After residency, I am do not want to be tied down to Ontario or anything. It seems straightforward to me, but I think it's obvious I should pay of my loans immediately (ie at the end of April (in a few days)). I am not aware of any loan forgiveness etc that Ontario has for a non-rural specialist who doesn't want to commit to working back in Ontario after residency. Basically, I'm just looking for someone to affirm my choice Link to comment Share on other sites More sharing options...
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