Loan options for Canadian student with US cosigner?

[dushash]

I already searched, not much info. Also, went to my local Canadian banks and they don't offer loans for US schools (they did in the past, but apparently too much students don't return to Canada and don't repay back loans, so they changed rules). I can't take US federal loans since I'm an International student. So my only option right now seems to look for best private loans with US cosigner. Since I can't get all the whistles and perks that US students get (like PAYE etc) I at least want to secure a loan that will give me an option to start repayment when I'm done residency. So I heard about Sally Mae and Discovery - are they descent companies I can trust? Any other options? Thank you

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[CanadianAbroad]

Have you tried loans from the Canadian government? Rules vary depending on your province!

 

[dushash]

Have you tried loans from the Canadian government? Rules vary depending on your province!

There is only OSAP which is only like 9-12K max (which is a joke - since I need $300K) and I need to jump through lots of hoops to get it working as they don't have US DO/MD schools on their approved list - it has to be custom arranged and is PITA.
Another option is private banks RBC etc. that can give a LOC (Line of credit) but again! it's not that easy - they require a cosigner with enough income and even then rate and amount is not the best - they are simply afraid of me moving and staying in US - they basically think they will loose money. They told me it was easier 10 years ago, but since then lots of Caandian med.students stayed in US and stopped repaying their loans. Canadian banks have little leverage to that students in that case, since US is still another country. So it's a sad story for any Canadian student who is trying to take loan in Canada.

 

[CanadianAbroad]

There is only OSAP which is only like 9-12K max (which is a joke - since I need $300K) and I need to jump through lots of hoops to get it working as they don't have US DO/MD schools on their approved list - it has to be custom arranged and is PITA.
Another option is private banks RBC etc. that can give a LOC (Line of credit) but again! it's not that easy - they require a cosigner with enough income and even then rate and amount is not the best - they are simply afraid of me moving and staying in US - they basically think they will loose money. They told me it was easier 10 years ago, but since then lots of Caandian med.students stayed in US and stopped repaying their loans. Canadian banks have little leverage to that students in that case, since US is still another country. So it's a sad story for any Canadian student who is trying to take loan in Canada.

There is only OSAP which is only like 9-12K max (which is a joke - since I need $300K) and I need to jump through lots of hoops to get it working as they don't have US DO/MD schools on their approved list - it has to be custom arranged and is PITA.
Another option is private banks RBC etc. that can give a LOC (Line of credit) but again! it's not that easy - they require a cosigner with enough income and even then rate and amount is not the best - they are simply afraid of me moving and staying in US - they basically think they will loose money. They told me it was easier 10 years ago, but since then lots of Caandian med.students stayed in US and stopped repaying their loans. Canadian banks have little leverage to that students in that case, since US is still another country. So it's a sad story for any Canadian student who is trying to take loan in Canada.

I truly understand your frustration. I spent all day trying to look for additional funding since I am in a similar position. I would most likely go for a line of credit at Scotia Bank since they have lower interest rates- that's if, of course, you have an eligible cosigner. If I find any scholarships or funding I will definitely let you know!

 

[dushash]

Hey guys, so the only US private loan I was able to get so far is fixed rate 7.7% (with deferral option included for residency). What say you on this rate? I understand it's not a common 5%-ish rate as Federal loans do, but in my situation I am not eligible for Federal loans. Another option they gave me was 5.5% variable - but I'm kinda hesitant to go with variable, I'll better stick to fixed - am I right?

 

[DrMikeP]

I already searched, not much info. Also, went to my local Canadian banks and they don't offer loans for US schools (they did in the past, but apparently too much students don't return to Canada and don't repay back loans, so they changed rules). I can't take US federal loans since I'm an International student. So my only option right now seems to look for best private loans with US cosigner. Since I can't get all the whistles and perks that US students get (like PAYE etc) I at least want to secure a loan that will give me an option to start repayment when I'm done residency. So I heard about Sally Mae and Discovery - are they descent companies I can trust? Any other options? Thank you

Speak with the financial aid dept at your school. They deal with this often and should be able to give you some guidance.

 

[UBC2014]

There is only OSAP which is only like 9-12K max (which is a joke - since I need $300K) and I need to jump through lots of hoops to get it working as they don't have US DO/MD schools on their approved list - it has to be custom arranged and is PITA.
Another option is private banks RBC etc. that can give a LOC (Line of credit) but again! it's not that easy - they require a cosigner with enough income and even then rate and amount is not the best - they are simply afraid of me moving and staying in US - they basically think they will loose money. They told me it was easier 10 years ago, but since then lots of Caandian med.students stayed in US and stopped repaying their loans. Canadian banks have little leverage to that students in that case, since US is still another country. So it's a sad story for any Canadian student who is trying to take loan in Canada.

This is incorrect. Getting osap to approve USMD/DO is not an issue at all. You aren't the first to go to the US. Pick up the phone and call them.

Getting cosigner is definitely an issue, but if you have a family member with a steady job it shouldn't be too bad, but definitely it can be a concern if you are from a lower income family. I understand that.

As for the issue of "lots of canadian med students staying in the US and stopped repaying their loans" - that is complete and utter nonsense. Whoever told you that is making full of crap.

Getting a loan is not that difficult at all to attend a US school, but it can be tricky if you do not have a cosigner that is able to back you. IF YOU ARE HAVING TROUBLES, GO TO A DIFFERENT BANK. Some bankers, actually most, have no bloody idea what they are talking about. DO the research yourself and know the facts.

Go to CIBC, you should get Prime interest, and max of 275K with cosigner. They wont give it to you all at once, though.

 

[dushash]

Thank you UBC2014! As always you are spot on! It was RBC where I went and the manager told me about students not repaying back and staying in US thus they were forced eventually to change their loan policies. However, you are right I got an impression he was hardly knowledgeable about their own programs available for med.students. I'm already researching other banks.

P.S. I think part of the problem is that in my small town hardly anyone gets such loans and folks who work in banks sometimes just don't know about it (even tho I understand it's their job to know) - in Scotiabank they told me I was the first to inquire about medical student loans.