dasha55

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I've read several times on this forum about gov't loan of upto 96,000 for Canadians for over 4 years. I've researched and called the representatives of both provincial and federal governments - NOTHING, no one has heard of it! SO is 96, 000 loan - a myth?!

The only money I can get is the federal portion of OSAP (Ontario Student Assistance Program) and is only $210/week or $8,000/year!

I just got accepted into Auckland (5-yr program); tuition is $ 33,000 (CND) plus room and board. I qualify for RBC (Royal Bank) loan of $150,000 without a co-signer OR $250,000 with a co-signer. The dilemma is I don't want to obligate anyone to co-sign, especially that it is just me in Canada (my parents left Canada for Russia, so they are not an option!).

What are my options with 150,000 RBC loan and potentially 8,000/year OSAP: take another credit line :( or beg some big pharmaceutical companies for money (if that's been done before?) or .... I don't know!

Any feedback is appreciated, especially re: 96,000 gov't loan!!! :)
 

AusMeds

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First of all, congratulations on your acceptance!!

I believe the $96,000 government loan you are referring to applies only if you reside in the province of Alberta and is advanced by the Alberta government. Each province has different limits, and those of us from Ontario have a VERY raw deal with a max of only $8,000 per year. You can try contacting this corporation:

http://www.iefc.com/canada/index.php?Cid=0006

However, I believe what you'll find is that if you sign up for the RBC loan for $150K then IEFC is going to want someone to co-sign and vice-versa. So, I don't believe there would be a possibility to get more than a total of $150K from both without someone co-signing. But, it's worth asking.

I believe your only options are:

(a) find someone to co-sign
(b) work part-time (make sure your NZ visa will allow this - in Oz, we are allowed to work up to 20 hours per week)

Anyone else have any creative ideas?
 

driedcaribou

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dasha55 said:
I just got accepted into Auckland (5-yr program); tuition is $ 33,000 (CND) plus room and board. I qualify for RBC (Royal Bank) loan of $150,000 without a co-signer OR $250,000 with a co-signer.
Is the $250,000 loan a new plan?

I can't find it advertised on the website...
 
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Off2Oz

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driedcaribou said:
Is the $250,000 loan a new plan?

I can't find it advertised on the website...
I wasn't able to get more than $150k. However, TD/Canada Trust offered a $60k/year credit line with a co-signer. This loan needs to be applied for every year though, so it seems like a pain.

Anyway, I don't think going past the $8k/year Canada student loan along with a $150k credit line from RBC is possible without a co-signer...
 

dasha55

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driedcaribou said:
Is the $250,000 loan a new plan?

I can't find it advertised on the website...
Hi, $250,000 loan is not a NEW plan. I can take $150,000 without a cosigner, and get the extra $100,000 on top - ONLY if I have a realiable co-signer in Canada (i.e. ideal credit history, decent salary, lenght of being in the work force).

I won't receive $150,000 in the first place if this amount doesn't cover all of my expenses (i.e. tuition + living cost + funds to pay monthly interest); RBC wants to be sure that I 'll be graduating to pay back the money and not quitting half-way because of financial difficulties. I can't even rely on OSAP when applying for RBC loan because the amout may vary and has to be applied for every year. Before approving you for a loan, RBC needs to see all the definte (assessed) funds, so even if you get approved for OSAP - it will be considered only for that 1st year.

Government of Canada also offers Commonwealth scholarships to study in commonwealth countries, but I am still trying to figure out id they are ONLY for MAster's and PhD students.
http://www.scholarships-bourses-ca.org/canadians_e.html

Re: Pharmaceutical companies..... under "community/public affairs" there are lots of awards ($$$), the PROBLEM is - they are not for individuals, rather for non-profit organization.

I wish I could find some old rich couple, that would be more than happy to sponsor me ....
 

driedcaribou

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dasha55 said:
Hi, $250,000 loan is not a NEW plan. I can take $150,000 without a cosigner, and get the extra $100,000 on top - ONLY if I have a realiable co-signer in Canada (i.e. ideal credit history, decent salary, lenght of being in the work force).
Interesting- I was never given that option when I signed up.

I won't receive $150,000 in the first place if this amount doesn't cover all of my expenses (i.e. tuition + living cost + funds to pay monthly interest); RBC wants to be sure that I 'll be graduating to pay back the money and not quitting half-way because of financial difficulties.
Also interesting- they didn't care whether or not I could finish the degree with the $150,000 I was allowed to borrow.
 

Off2Oz

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driedcaribou said:
Interesting- I was never given that option when I signed up.


Also interesting- they didn't care whether or not I could finish the degree with the $150,000 I was allowed to borrow.
Yep - I got exactly the same treatment. In fact, I asked if I could get more than $150k with a co-signer, but they said I couldn't.

Crazy banks.. I bet the person I was dealing with just didn't know.
 

nicko18

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Can't you work whilst undertaking med school? Or is it hard to get work as a non-NZ citizen using a student visa?

You might want to check out if student visas allow you to work because I know a lot of north americans work in Oz during their medical degree in some casual position.
 

kumquat

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I talked to Bank of Montreal and they said that the amount you can get from them is unlimited (?!?!) AND the interest rate is just prime instead compared to prime +1% at RBC. But...they usually need a co-signor unfortunately. I'd go talk to them anyways just to see how much you can get without a co-signor.
 

dasha55

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kumquat said:
I talked to Bank of Montreal and they said that the amount you can get from them is unlimited (?!?!) AND the interest rate is just prime instead compared to prime +1% at RBC. But...they usually need a co-signor unfortunately. I'd go talk to them anyways just to see how much you can get without a co-signor.
HI there! That's true, Bank of Montreal offers an unlimited amount, and requests low monthly payments, BUT there is a catch.

First of all, no exceptions - you need a co-signer.

If I borrow 50,000/year I'd have to pay only about $40/month (that is 2% of 4% of 50,000), which is great! BUT as soon as I am finished with school, there is NO grace period (as there is with RBC), the first month you have to start paying off your principal (about $8,000 if my loan was $200,000) and the prime rate jumps from 4% --->7%.
8,000 - ? I don't know if I'll be making this much as soon as I graduate!

We have elections coming up in Canada, so I thought it's perfect time to comment on the extent of federal student assisstance to Tim Peterson and Belinda Stronach - Ontario provincial and federal government representatives. I am curious if they would even care!
 

dasha55

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Why chose one over the other?

CanHelp seems like a good program(low interest, may borrow up to $45,000 US , grace period, co-signer is necessary for loans over $20,000 US/year, and up to 25 years to pay back), correct me if I am wrong.
Thanks
 

Off2Oz

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dasha55 said:
Why chose one over the other?

CanHelp seems like a good program(low interest, may borrow up to $45,000 US , grace period, co-signer is necessary for loans over $20,000 US/year, and up to 25 years to pay back), correct me if I am wrong.
Thanks
I think the co-signing need to come from a US citizen, though...
 

AusMeds

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dasha, I'm not sure your interest calculations are correct ...

If you borrow 50,000/year at 4% with interest payments only during school/residency, every month you would have to pay:

50,000 x 0.04 / 12 = $167.00

Therefore, after the first 50,000 was used, you would pay $167/month; then, after the second 50,000 was used, you would now have to pay $334/month, etc. These interest payments need to be worked into your budget as by 3rd/4th year they are significant monthly payments.

Then, once residency is completed. If the interest rate jumps from 4% to prime, assume this is 7%, and also assuming that you would plan on paying off the student loans over 20 years - then monthly payments are $1,162.95/month on a $150,000 loan (use PMT(0.07/12,20*12,150000) in Excel). Of course, if prime is higher by the time we complete residency, then the monthly payments grow accordingly.

Anyway, these payments should be manageable. On an average residency salary of $50,000. Take home monthly pay would be 50,000 * 0.75 (tax) / 12 = $2,916.67. This leaves $1,962.05 for rent, food, etc.

Finally, as for CanHelp - last time I checked they had a number of fees that when you factored these into the interest rate, it turned out to be more expensive than the Canadian banks. The best deal seems to be RBC.
 
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