However, no one teaches us about debt in medical school, and as such, we are easy targets for bad repayment plans.
It does not take an advanced degree in economics to understand that the longer it takes us to pay our debt back, the more we pay in interest to a lender (this holds true for all debt).
Jeffrey Schwartz, executive director of Consolidated Credit Counselling of Canada in Toronto, says there are significant risks involved in co-signing for loans for students that parents should consider.
As of October 2013, the average medical student graduated with 9,901 of debt with nearly 80 percent of all graduates owing at least 0,000.
When the federal government offers medical students loans, they know that they will not only get their money back, but that they will get their money back with a sizable return due to the interest.
Medical students and future physicians tend to be trustworthy customers/borrowers, and the government knows that the country needs doctors.
A person who meets the following requirements is eligible for a medical resident loan: 1. the Minister, with respect to any student loans made under the Act, or ii.
DRB will forgive all of the amounts owed under the student loan if the borrower dies, and some or all of the amounts owed under the loan if the borrower demonstrates to lender’s reasonable satisfaction a significant unanticipated permanent reduction in borrower’s income due to borrower’s permanent disability.
The fixed interest rate will apply until the loan is paid in full (whether before or after default, and whether before or after the scheduled maturity date of the loan).
The monthly payment for a sample ,000 loan at a range of 4.20% per year to 6.15% per year for a 5-year term would be from 5.07 to 4.03.
When you borrow money, you agree to pay it back with interest over time.
(1) A medical resident who has outstanding federal or provincial student loans and who is willing to enter into a return of service agreement with the Ministry of Health and Long-Term Care may apply for a medical resident loan in accordance with this section.
(2) The application for a medical resident loan shall be submitted to the Minister.