What Happens To Undergrad Student Loans While I'm In Med School?

[bjyhwang]

I'm sure a lot of people will be entering med school with some form of student loans. I was just wondering whether I have to continue to make payments for undergrad student loans. If not, will the time I'm going to be spending in med school going to be interest free for undergrad loans since I will be a full-time student? Do I have to inform any agency that I will be going back to school or do they somehow automatically know I'm going back to school? So many questions...I'd really appreciate anyone's help. Thanks.

[futurefamilydoc]

I only have experience with Ontario loans (OSAP), but since you are still in school your loans remain interest-free and you do not need to start making payments yet. In fact, most medical students still apply for and receive additional OSAP money during medical school, it is an important source of financial aid. To let them know you are still going to school, you either apply for and receive additional student loans during school, or there is a form you get online and submit to them to prove you are still in school.

[bjyhwang]

Thanks for your reply! Did you have to send a separate notification for Canada Student Loans? I received student loans from Manitoba and I've already applied for additional loans for med school but I'm not sure whether I have to somehow inform Canada Student loans (the federal government loan rather than the provincial one). 

[oshaku]

Thanks for your reply! Did you have to send a separate notification for Canada Student Loans? I received student loans from Manitoba and I've already applied for additional loans for med school but I'm not sure whether I have to somehow inform Canada Student loans (the federal government loan rather than the provincial one). 

 

Since you applied for more loans from the provincial body the province knows you're going to be a full time students and communicates that to the federal body.  This is how it works in every province except Quebec because Quebec.

[Bambi]

When you need to pay interest, only then consolidate these loans with your LOC which will give you a lower rate of interest, i.e., prime.

[MathToMed]

When you need to pay interest, only then consolidate these loans with your LOC which will give you a lower rate of interest, i.e., prime

 

 

This. Don't consolidate your loans while OSAP is not in its repayment phase yet - I've seen so many people make this mistake, it's not even funny.Three friends of mine have gone to med/dent/law and thrown their OSAP onto their LoC and had to immediately pay interest on it (even if it was prime and better, if you have interest free status, take advantage).

 

Then consolidate your loans to the lowest interest rate, and pay off the highest interest rate loans first (a general rule in life).

[rmorelan]

This. Don't consolidate your loans while OSAP is not in its repayment phase yet - I've seen so many people make this mistake, it's not even funny.Three friends of mine have gone to med/dent/law and thrown their OSAP onto their LoC and had to immediately pay interest on it (even if it was prime and better, if you have interest free status, take advantage).

 

Then consolidate your loans to the lowest interest rate, and pay off the highest interest rate loans first (a general rule in life).

Oh Gezzz......why? Why would you do that?

[Birdy]

This. Don't consolidate your loans while OSAP is not in its repayment phase yet - I've seen so many people make this mistake, it's not even funny.Three friends of mine have gone to med/dent/law and thrown their OSAP onto their LoC and had to immediately pay interest on it (even if it was prime and better, if you have interest free status, take advantage).

 

Then consolidate your loans to the lowest interest rate, and pay off the highest interest rate loans first (a general rule in life).

Why on earth would anyone put their student loans onto their LOC before they need to?

 

I'm budgeting to roll my federal loans into my LOC, since my provincial ones remain interest free throughout repayment and I can remain in grace during residency, but I probably won't actually end up having to do that since I'll most likely be eligible for significant Canada Student Loan forgiveness. If I were to pay off my CSL using my LOC, I won't be eligible for that. But there's a whole whack of programs like that which people can access. Why don't people seek out this information?

[MathToMed]

It's because people lack financial literacy. We're up to nearly 2 dollars borrowed for every dollar earned in Canada...and sadly, just because someone gets into a professional school does not make them exempt from the general statistic.

[rmorelan]

It's because people lack financial literacy. We're up to nearly 2 dollars borrowed for every dollar earned in Canada...and sadly, just because someone gets into a professional school does not make them exempt from the general statistic.

 

thought about it - probably compounded by the thought that a) doesn't really matter I guess in the end as your income will be pretty high, and b ) probably have some other professional to help manage all that crap eventually anyway. 

 

partially true in both cases I think but it completely misses the point

[Bambi]

One should never trust your professional blindly. It is always best to be an informed client. 

[rmorelan]

One should never trust your professional blindly. It is always best to be an informed client. 

 

part of the trouble - and you can see why this might be the case - is there is a big business component to being in medicine, and most people going into the field don't have a background in that area (not much room in a typical premed program at a university for business management courses ) 

 

Plus it isn't even really gone over in residency either for that matter. Bit of a blind area. 

[Bambi]

part of the trouble - and you can see why this might be the case - is there is a big business component to being in medicine, and most people going into the field don't have a background in that area (not much room in a typical premed program at a university for business management courses ) 

 

Plus it isn't even really gone over in residency either for that matter. Bit of a blind area. 

Agreed.

 

Accountants who supposedly have experience dealing with many doctor clients have been recommended to me and I have gone out to lunch with some, probing them to get a sense of their experience and knowledge, so as to try to make an informed decision whom to appoint for the long haul. I am just starting residency, so I have a few years to get it right. I am also considering changing my insurance broker as I am advising him rather than he making me aware of important matters. It ain't easy for us who are new to this game. 

[rmorelan]

Agreed.

 

Accountants who supposedly have experience dealing with many doctor clients have been recommended to me and I have gone out to lunch with some, probing them to get a sense of their experience and knowledge, so as to try to make an informed decision whom to appoint for the long haul. I am just starting residency, so I have a few years to get it right. I am also considering changing my insurance broker as I am advising him rather than he making me aware of important matters. It ain't easy for us who are new to this game. 

 

ha, true

 

my first insurance agent never asked for why I wanted the particular set of packages I requested - and that is terrible sign. If I didn't know any better I could have been walking into easily into a situation of being either over or under insured. The entire point of an agent it so make sure you are covered but covered also appropriated. That requires an understanding of the goals.