View Full Version : How do you fund your education?
05-28-2002, 02:25 AM
I have a question for current med students: How do you fund your medical education? I know many of you have student loans, but are the loans big enough to cover your tuition (especially given the increase in tuition at UBC)? What are some other ways students can get financial support for their medical education?
05-28-2002, 03:57 AM
I moved this out of the UBC forum into the Med Students Forum as I think this topic is better placed here. Most med students seem to subsist on parental support, old money from previous jobs, scholarships and busaries, student loans, and bank loans.
The vast majority of my classmates have student loans, and several took out bank loans as well. Banks like hearing the phrase "medical student" as it can be quite profitable to reel a med student in early on as they then become practising physicians. I'm sure in Ontario, and here in BC once the tuition gets raised up to the $14,000 annually that they're threatening to do, that most students need to take out bank loans at that point to augment their student loans.
Luckily (if you can call it that), those bank loans (usually lines of credit) have extremely competitive interest rates, such as prime rate because the banks are competing for your business.
UBC, Med 3
05-28-2002, 04:53 AM
Mine will be funded by a large line of credit I secured with the Royal Bank of Canada...interest at prime (oops, edited because I had prime plus one before). I agree with Ian...you walk into a bank...tell them you're a prospective medical student...and within a day (it took a total of 2 days for me) you can get offers from all of the banks. The best in Ottawa was the Royal Bank...they offered me 50K to start with the possibility of raising it, as required, througout my education to 125K and then...they said it could be extended beyond that depending on my needs.
05-28-2002, 06:09 AM
Thanks for all of your replies. 1 more question: Is a student loan from the government enough to cover the tuition (e.g. of UBC) without additional support? I'm working on my loan application form right now, and I realize that they didn't ask me anything about the amount of tuition I need to pay (they only asked me the program of study)......I'm just afraid that the government will then just give everyone (regardless of which program you're in) the same amount of loan, and as you know, the tuition for MD is significantly more than that for a BSc.
Ian, does UBC Medicine or UBC itself provide bursaries / scholarships specifically for medical students? And Peter, do you need to repay the loan once you start residency? Or could it be delayed like the way the government loan can?
Thanks again for your help!
05-28-2002, 07:03 AM
If you require a Line of Credit, check to see if your school has set up some special programmes with banks. We have a number here at Mac that will offer $25000 at Prime with no co-signer... Plus there is a new banking programme set up specifically for med students through MD Management (an offshoot of OMA or CMA which offers financial advice)... I have found these to much better than the Lines of Credits that you can get if you walk into a bank off the street and ask for a LOC.
In the Ontario schools, many students require a line of credit to top up OSAP (Ont student loan programme)....
as the student loan usually doesn't even cover tuition!
05-28-2002, 07:21 AM
First of all, student loans in Ontario that I'm aware of (and I may not be aware of all of them) don't even come close to paying even the tuition for U of O...I believe our tuition will be 12,600 this year plus 4K for a computer plus about 1K for books. Many people will get a bursary for the computer (which is mandatory...the computer is mandatory, not the bursary :( ) which will cover, so I'm told, about 3/4 of the cost. So, the short answers to the question is that student loans are likely not sufficient.
With respect to the line of credit...my wife is still paying off her line of credit (she's about 8 months out of her residency) which summed to just over 100K after residency. During med school and residency all you're responsible for is paying interest...quite minimal...which you pay, interestingly enough, with your line of credit! :b
05-28-2002, 09:21 AM
I only have a line of credit at scotiabank. Their interest rate is also at prime. I liked them better than the Royal Bank plan (less user fees, and better services)
If you qualify for OSAP, then you can get a few thousand dollars from them (I'm only guessing because I don't qualify until next year since I didn't finish high school for more than 5 years until now).
If you can get OSAP, you can get a lot of other assistance through UTAPS, bursuries, and free money from the millenium scholarships. But the key here is that to get student aid, you must get OSAP first or else you can't qualify for anything else.
So, student aid/loans don't cover tuition at all. If you're lucky though, they do cover a significant part of tuition (maybe a little less than half) which is much better than some of us who don't qualify for student aid, but have little financial help from our families. So, with OSAP AND a LOC many students do find it managable.
If you don't get OSAP, then you only have a LOC from a bank to work with. That, or you may be lucky to have really wealthy parents who don't mind helping you out.
05-28-2002, 12:22 PM
Just to add my perspective/situation:
No assets, income or parental support upon enrolling in medical school - I'm managing.
BANK LINE OF CREDIT:
Royal Bank - credit line up to $125,000 but includes gov't loans (downside).
Interest at prime lending rate (don't accept anything more! Most of the banks will offer med students prime.) That's somewhere in the 3-4% range now, I believe.
Interest payments monthly during school (downside)
No banking fees at all (package deal for "Western" students. . . I'd be shocked if there wasn't a package deal for every school)
Don't even come close to to paying my year. I didn't get any OSAP this year, but some Canadian Student Loans this year
Next year should get $11,500 (I think that's the max)
Advantage: No interest while in medical school
Disadvantage: Huge interest upon graduation. I think the repayment interest on student loans is about 9.5%, which is out of sync with today's economic climate (note the much lower interest rate on my above line of credit.) If this is the situation when I graduate, I'll see if I can pay off my student loan in one swoop with the LOC.
05-28-2002, 06:20 PM
Thanks again for the prompt replies everyone! It seems like just getting a student loan won't be enough to cover the tuition without getting outside support......I have a question about the line of credit banks provide though. From what I know, residents aren't making very much. Is it very difficult for them to pay back the bank once they start residency?
05-28-2002, 06:49 PM
There are a number of bursaries available for med students at UBC. Many people in my class snagged bursaries of up to $5000 in their first year, and more bursaries are available each year. In your third year clerkships, you are actually paid $500 a month, so in the year, you actually get $6000.
I think surviving on just student loans at UBC pre-tuition hike was nearly possible; with tuition going up, this is not so. As Akane has pointed out in Toronto, the same situation applies here at UBC. You will not qualify for the majority of UBC Med bursaries until you have maxed out on your student loans for that year, which is anywhere from $12-14,000 depending on the year you're in.
Residents generally carry debt through their residency until they graduate and set up shop. The vast majority don't bother trying to pay loans off during residency, from what I've heard. The line of thinking is that it's much easier to scrimp and pay off loans when you're netting a private practice salary, versus when you're getting paid $40K a year in residency.
UBC, Med 3
05-28-2002, 07:55 PM
I have one friend who is paying off about $6000 in his first year residency... he has found that he is so busy he isn't spending a lot of money (and doesn't need to buy clothes as he is in greens all the time :) )... he's actually quite surprised as he thought he wouldn't be able to at all... I think he sat down with MD Management or someone similar just before he graduated last year and worked out a budget for living etc... so maybe it is possible to start paying off a little if you budget well.
Another close friend is a finance guy, marrying a physician who just finished her residency. They worked out that if she lived on the same budget as in medical school and for her first couple of years of family practice, she would be able to pay off her debts quite quickly -- but I don't think hers were as high as most of ours will be! That said, she is now marrying a relatively wealthy "suit" which will also help :b
05-29-2002, 12:53 AM
I have also heard that its possible to chip away at the debt during residency.
BTW what does the suit do, is he an investment banker?
If I dont get accepted this year, I'm off for an MBA any good fields in business to go into.
06-03-2002, 09:24 PM
Thanks again for all of your replies! Again, I have 2 questions regarding funding......
1. To Ian: How can I get more information about bursaries available for UBC medical students? I've visited the Financial Aid webpage of UBC but there's nothing on there......Will information like this be provided during our orientation?
2. As I said, I'm working on my loan application now. I'm living alone, have no employment income, not much asset (little saving, no GIC etc), but I do own a car that's pretty expensive (i.e. >$30000). Will owning a car affect my chances of getting student loans, or the amount of loan I can get?
Thanks again for your time......And Peter, I'm not sure whether you still visit this thread, but I'm sorry to hear your news......You've been extremely helpful, and I am glad that you're not giving up! We're all rooting for you!!!
06-03-2002, 09:46 PM
How do you not have a job, no assets but own a 30,000 car, are you one of those kids who's parents hit it big on a certain foreign stock market? Well Done buddy
06-03-2002, 09:56 PM
Bursary information is limited, and most people just fill in the form and see what they end up getting. You don't need to worry about this until you've started attending school; I don't even think the forms are out yet. You generally need to have maxed out on your student loans to get these bursaries.
If you've got a $30,000 car under your name, I think that could very well torpedo your student loan. If you're driving an expensive car, it's an asset that could otherwise be used to fund your education.
UBC, Med 3
06-03-2002, 11:00 PM
Thanks Ian for the info......Yeah I'm worried about the car problem and I suspect that could hurt my chances in securing a student loan......I'll definitely explore other options of funding e.g. bank loans.
And Gortex, no, I'm not one of those kids, but sorry that I don't feel like disclosing details of my (as well as my family's) financial situations on a public forum.
06-04-2002, 09:49 AM
Hi Jay Z,
Just to confirm what Ian has already said, I also think your vehicle could have an impact on how your student loan is assessed. From personal experience, I applied for a student loan several years back and was initially declined. When I inquired as to why this had happened they said that my car was worth too much $$, but fortunately for me I had overestimated the value of this car and was later reassessed (and received the loan).
My understanding is that they will tolerate a car, but generally they expect it to resemble the truck from Sanford and Son :D (the value of my 1990 van at the time was estimated from the "black book" or "gold book" to be around $3000, for example).
One idea that you might consider would be insuring the car in the name of a parent, friend or someone else that you absolutely trust. This practice is common, especially among young drivers whose parents/friends etc. have better driving records than they do, thereby reducing insurance costs for the aspiring student. Of course, I'm not suggesting you go one way or the other, but I understand how hard it can be to fund your education. Best wishes.
06-06-2002, 06:18 PM
Yeah. . . even try transferring ownership to a parent/sibling/friend's name. I have a couple of classmates who did that so they wouldn't be penalized for loans.
08-07-2005, 04:33 PM
Floating back to the top.
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