To student loan or not to student loan!?

[bgheuchert]

Ok so I know that if you could afford not to take out a student loan you would right? Well here is the thing. I took out government student loans for my undergrad studies and NEVER thought that I would even consider them for grad studies EVER, however, the thing is, after I graduated the government forgave 1/2 of the loan! Just wrote it off, congrats, you don't have to pay...AWESOME. We are living very frugally, and know that the loan is pd off I dont want to take out another one, I am entering open learning this time though (which basically means I can take one course at a time and pay as I go), so I can pace it with finances. SO the question is, do I just pay as I go, or take out the loan with thoughts that probably I will be forgiven about 1/2 again!? P.S. I am reeeeeaaaallly leaning towards just paying as I go, but the extra cushion of the loan would be nice, but still swinging towards pay as I go...what do you think?

[bgheuchert]

Actually seeing it in writing right before my eyes as I re-read the post makes me think "WHAT ARE YOU THINKING!! SAY NO TO THE LOAN!!"

[Brad]

How could you not have any shame about taking money from your country and not paying it back? Don't you have any morals? The rest of us hardworking people have to foot the bill for that you know. It's one thing if someone has the intention of paying it back but finds themselves in terrible financial hardship and can't pay it, but you are actually going into the loan with the intention of not paying it back.

[bgheuchert]

No Brad I just know that they have debt reduction programs, and that is the same story for hundreds of thousands across the country, which they may or may not implement for "what I know" and you will be happy for "what I know" when you are sitting in the office of my private practice waiting for your "free" health care.

[Natalka]

Lucky you to have had some of your loan written off, but I don't think that's common, so I wouldn't count on it happening again. They change the programs and the criteria all the time.

It took me 10 years to pay off my student loan which I got for my second degree - I applied two different occasions when times were tight to have a month or two delay over that time period, and was refused both times.

If you can, pay as you go.

[Shwa Girl]

Actually seeing it in writing right before my eyes as I re-read the post makes me think "WHAT ARE YOU THINKING!! SAY NO TO THE LOAN!!"

I agree.
It is a good feeling to finish a degree, without debt.
You can also claim the tuition deduction on your income taxes, for each year of full time studies.

[matrix82]

Wow, you are lucky to have a portion of your loan forgiven. I don't qualify for the repayment assistance program. I needed student loans for my studies, what is killing is the interest. Half of my payments per month is interest.

I believe that the government can afford to forgive some loans such as yours, not from taxpayers but from the interest they are making off of those paying back their loans. I am just thankful I am not like some colleagues who had 10+% interest, mine right now is 5.5% which is pretty high.

I knew when I took loans out that I would have to repay them, just didn't realize how the interest would accumulate. I worked part-time/full time during all my studies to reduce how much loan I had to take, which is a good thing.

[linnyeg]

I qualified for OSAP and took it as a cushion. I never ended up needing it so I invested it while I had it and then paid every cent of it back the day I graduated. So I actually made interest on it instead of paying any! That's always a possibility.

[i_forget]

I do not think that you can even get OSAP loans for single courses. I seem to remember them telling me when I went to school that I had to carry a minimum 60 % course load. Could be wrong though.

[krysta lynne]

i get osap. and dont have to pay back the full amount. it is not because of loan forgiveness though. the province gives grants toward the loans so i end up having to pay back 60% of what they give me. i'm not sure if this is based on income or what but it sounds similar to yours. im only a year and a half in though, but still by the time im done my loan will be huge. and even the 60% is going to be difficult

[krysta lynne]

I do not think that you can even get OSAP loans for single courses. I seem to remember them telling me when I went to school that I had to carry a minimum 60 % course load. Could be wrong though.

this is true. 60% is the requirement

[Insane]

How could you not have any shame about taking money from your country and not paying it back? Don't you have any morals? The rest of us hardworking people have to foot the bill for that you know. It's one thing if someone has the intention of paying it back but finds themselves in terrible financial hardship and can't pay it, but you are actually going into the loan with the intention of not paying it back.

Lucky you to have had some of your loan written off, but I don't think that's common, so I wouldn't count on it happening again. They change the programs and the criteria all the time.

It took me 10 years to pay off my student loan which I got for my second degree - I applied two different occasions when times were tight to have a month or two delay over that time period, and was refused both times.

If you can, pay as you go.

In Ontario the government assess your need and gives you your loans. Then when it is all said and done, they re-evaluate you (to make sure you were honest about your income). If everything checks out and they didn't overpay you, they issue you a grant so that the max you can pay max is $3500 per semester (well it was $3500 per semester when I was in school I think it's higher now). I got it quite a few years. But when I underestimated my income one year, it was determined they overpaid me and as such I could not get the grant.

Here's another way to think of it...if you go all out and go to school full time you'll finish faster. Would you get a higher paying job faster? Might be worth it to get it done and over with faster.

OSAP does issue part time loans too. But interest accumulates right away, not when you graduate.