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Student Loan/SLOC

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I'm thinking of applying for a government student loan, as well as a professional LOC, and I was just wondering if anyone could share some tips/advice in regards to this? I am obviously hoping to get as much of a government student loan as possible so not to have to worry about paying interest while still in school, but will still be needing to take out a professional LOC to cover my expenses.  Does anyone know where the best deals are for LOC's as far as interest rates go here in MB?  I've been looking through other forums on here, and most people are suggesting Scotiabank, but I'm just wanting to know if that holds true for Manitoba as well.

 

Any advice would be greatly appreciated! Thanks!

 

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YesSurely    68

I know RBC is prime + 1%. They will lend up to 90k and you dont pay principal until 1 year after graduation. Im not sure about the others but you could shop around online as all of the terms are posted. 

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Jethro    276

Scotiabank is far and away the best PSLOC out there. Nobody else matches it.

 

$100K limit, plus a $5K credit card

Prime +0.5 on the LOC

Repayment not required until one year after articles (articles count as time in school)

No account fees

 

As for government student loans, apply for those as well since they're interest-free for as long as you're in school. What I'm doing is using the government loans for tuition and accessing the PSLOC as needed for cost of living I can't cover otherwise. When those go into repayment, I'll pay them off using the PSLOC since the government charges a higher interest rate than Scotiabank does.

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WaJD    5

Scotiabank is far and away the best PSLOC out there. Nobody else matches it.

 

$100K limit, plus a $5K credit card

Prime +0.5 on the LOC

Repayment not required until one year after articles (articles count as time in school)

No account fees

 

As for government student loans, apply for those as well since they're interest-free for as long as you're in school. What I'm doing is using the government loans for tuition and accessing the PSLOC as needed for cost of living I can't cover otherwise. When those go into repayment, I'll pay them off using the PSLOC since the government charges a higher interest rate than Scotiabank does.

 

Hi Jethro, 

Do you happen to know if the interest rate of 0.5 is negotiable? because a friend of mine said her friend is in dentistry and she's also using the Scotiabank PSLOC but only paying the prime interest. Also, out of the two credit cards we can pick from, which one is better and why? I heard the annual fees are waived but would they be charged after we graduate? 

 

Thank you!

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Jethro    276

Hi Jethro, 

Do you happen to know if the interest rate of 0.5 is negotiable? because a friend of mine said her friend is in dentistry and she's also using the Scotiabank PSLOC but only paying the prime interest. Also, out of the two credit cards we can pick from, which one is better and why? I heard the annual fees are waived but would they be charged after we graduate? 

 

Thank you!

 

I've never heard of anyone getting straight prime as an interest rate, but if you do swing it, PM me and tell me who you're dealing with so I can get in on that. Note that I consider this so unlikely I'm willing to have you over to taste from my impressive scotch collection if you manage it.

 

Annual fees on the credit cards are waived, although I am not certain whether this will continue once you enter repayment. I want to look into that now... although, quite frankly if that was a big thing for you they would probably waive that to retain you as a customer. They really don't make a lot off you as a student; the reason this deal is so good is that they're trying to keep your business when you become a well-paid professional.

 

As to which card is better, that depends on you and what you want from the card. If you're not interested in travel or rewards, go with the cash back card. You can either use whatever amount you get back as fun money or put it toward something useful. As for me, I took the travel card - not because I'm traveling a lot now, but because I put basically all my expenses on the card and pay it off each month, which results in me paying no interest but racking up the reward points. The goal is for my wife and I to take a vacation either post-graduation or post-articles and not pay for flights. If you're not interested in traveling, go over to scotiarewards.com and check out the other stuff you can use points for. Like I said, it basically comes down to what you want from it; both cards will function the same way.

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femlaw    22

For those of you that had a positive experience with Scotia, can you recommend a specific branch and/or representative in Winnipeg?

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Thatguy    168

For those of you that had a positive experience with Scotia, can you recommend a specific branch and/or representative in Winnipeg?

PM sent for details.

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Nutty    160

...

 

As for government student loans, apply for those as well since they're interest-free for as long as you're in school. What I'm doing is using the government loans for tuition and accessing the PSLOC as needed for cost of living I can't cover otherwise. When those go into repayment, I'll pay them off using the PSLOC since the government charges a higher interest rate than Scotiabank does.

 

In Ontario the interest on the government loan is tax deductible. That's probably the case in Manitoba too, so you need to keep that in mind when deciding where you want to carry your debt.

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Jethro    276

In Ontario the interest on the government loan is tax deductible. That's probably the case in Manitoba too, so you need to keep that in mind when deciding where you want to carry your debt.

 

It is, indeed. Everyone should do the math for their own financial situation. For me, the tax deduction I would receive would not offset the difference in interest payments when the student loan interest rate is prime +5% compared to prime +0.5%.

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Diplock    9514

Well ... you can do the math, yes. But having done the math, and being pretty good at math, it takes a hell of an extreme situation for the tax deductability of the interest to ever offset a higher interest rate.

 

Here's an example, remembering how extremely low interest rates are right now. If you are carrying a loan at 3% because it's tax deductible, and if you had the opportunity to carry that same loan instead at 2.5% but not tax deductible, you've already saved 16.6% of the interest you'd be paying by dropping down half a percentage point. Allowing for other deductions, there are relatively few people, especially those recently out of school, who pay a marginal tax rate above 16%. And that's an extreme example when I'm citing just half a point of difference. Anything more than that and it becomes a slam dunk.

 

So yeah, it isn't tax advice. But if you'd prefer to skip doing the math, it's almost guaranteed in your best interests right now to give up the tax deduction in favor of a lower rate if one is available.

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Dinnora    1

Apply for government student loans. Even if you don't get any or just bank the money till you graduate the school has a bursary program which requires you to apply for loans. The bursarys are based on need not grades and just fI'll out some forms about your financial situation. Highly recommended.

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Dren41    5

I'm seeking advice from 1L's/2L's with respect to the school's financial aid and bursary programs. Based on my finances, I believe that I qualify for UofM's financial aid program however, I would like to know how will a line of credit from a Canadian banking institution impact one's financial aid application. Furthermore, when is the application deadline for financial aid/and or other bursary programs? Lastly, is a professional line of credit treated as a liability or an asset on one's financial aid application? Any comments/and or suggestion suggestion would be greatly appreciated.

 

P.S. Feel free to PM me as you see fit. 

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Jethro    276

I'm seeking advice from 1L's/2L's with respect to the school's financial aid and bursary programs. Based on my finances, I believe that I qualify for UofM's financial aid program however, I would like to know how will a line of credit from a Canadian banking institution impact one's financial aid application. Furthermore, when is the application deadline for financial aid/and or other bursary programs? Lastly, is a professional line of credit treated as a liability or an asset on one's financial aid application? Any comments/and or suggestion suggestion would be greatly appreciated.

 

P.S. Feel free to PM me as you see fit. 

 

When applying for bursaries, a line of credit (or lack thereof) is not considered - financial need is assessed on the basis of your financial assessment done by your provincial student loan administrator in combination with information you disclose re: living expenses.

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dovetail    5

Just a note for anyone applying for Manitoba Student Aid.

 

I popped by the Student Aid office this morning and they are apparently running behind on getting the applications out this year. While they are typically available at the beginning of June, they aren't anticipating having anything available until mid June or later. Not sure why.

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dovetail    5

Update from my previous post: Manitoba Student Aid applications are now available online for those applying.

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