Personal Finance

Guy pays off $26500 student loan in less than 2 years

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  • Nov 24th, 2013 12:32 pm
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Deal Addict
Feb 5, 2010
2764 posts
176 upvotes
Xiaohaibao wrote:
Jan 13th, 2013 12:40 pm
You are making one assumption, that everyone's parents live in a big city where it's easy to find a job. What if your parent live in a town where you can't find a job with your skills? Living with parents is not an option then.
+1.

If your parents live in the boonies. Good luck with that.

I think most people here on RFD are city folk though.
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Feb 20, 2006
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AaroAari wrote:
Jan 13th, 2013 4:36 pm
The maximum repayment amount of $7,300 (2 term) and $10,950 (3 term) doesn't mean a cap of $30k overall. This is only the case if you went into a 4-year program (2 terms each year) and ran into no complications; your maximum debt is indeed $29,200. But what about the programs with 3 semesters? What about summer classes for a program that otherwise has 2 terms a year? What about the people that change programs, fail a year (never mind the complications of OSAP probation for this example), etc?

Given the rate of students changing programs for one reason or another, it's definitely not uncommon to graduate with a debt of higher than $30k.
+1

My OSAP repayment amount after my 4 years will be:
$7300 + $7300 + $10 950 + $7300 = $32 850 ... sigh, OSAP sends me a statement how much I owe them each semester...

In addition I have a LOC to pay for the stuff OSAP doesn't pay for me (my tuition is $20K/yr, also need to include cost of living). Luckily the LOC is at prime (3% right now), and I'll be using that to pay off my OSAP right away.
He died for me, I live for him
Sr. Member
Mar 4, 2009
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That's a poor lifestyle. Simply work PT during school...and work a lot during the summer. During this time also have a good lifestyle (exercise and eat well) without eating expired food, etc. Your OSAP debt will be at a minimum at the end. STUPID story, and the population should not follow him.
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Dec 7, 2009
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Xiaohaibao wrote:
Jan 12th, 2013 12:26 pm
Cause if you live cheap when you are young, pay off your debts and start investing for the future, you will be living the good life down the road. It's about delayed gratification.
Or you pay off your debts and start investing for the future and get hit by a train and die.
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Dec 7, 2009
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Kasakato wrote:
Jan 13th, 2013 2:15 pm
Because Ontario says so? https://www.ontario.ca/education-and-tr ... -back-osap
Sorry but where in that article does it say that 30k is the cap? I'm at 48k and I have 2 more years of school I still want to do yet, albeit I'm working FT right now paying some of it off.
In a perfect system, corporations would fear the government and the government would fear the people. - David Wong

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Member
Feb 13, 2011
255 posts
28 upvotes
shannn wrote:
Jan 13th, 2013 5:04 pm
+1

My OSAP repayment amount after my 4 years will be:
$7300 + $7300 + $10 950 + $7300 = $32 850 ... sigh, OSAP sends me a statement how much I owe them each semester...

In addition I have a LOC to pay for the stuff OSAP doesn't pay for me (my tuition is $20K/yr, also need to include cost of living). Luckily the LOC is at prime (3% right now), and I'll be using that to pay off my OSAP right away.
I personally wouldn't pay off OSAP with a line of credit. It's true that the line of credit is cheaper and you'll save more in interest costs. But, OSAP is just a much safer debt to have, in my opinion.

If you lose your job or can't find a job right away after graduation or can only find a low paying job, there's no pressure to pay OSAP. You can apply for all sorts of payment assistance as well that you can't get with a bank loan or line of credit.

I personally feel more comfortable carrying OSAP debt than a bank loan.
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Oct 7, 2010
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Abel4Life wrote:
Jan 13th, 2013 4:51 pm
+1.

If your parents live in the boonies. Good luck with that.

I think most people here on RFD are city folk though.
Not sure what OP is going on and on about other people saying they paid off their OSAP but lives at home. The OP lives at home as well and always say he is high net worth with his 100k. I doubt he will be balling 100k if he has to pay his own way. I bet he doesn't even contribute to the family. :D

Having parents live in the boonies are almost like having parents whom are deadbeats. It can also work the other way that parents are rich ballers and live in the middle of forest hill.
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Mar 25, 2005
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AaroAari wrote:
Jan 13th, 2013 4:36 pm
The maximum repayment amount of $7,300 (2 term) and $10,950 (3 term) doesn't mean a cap of $30k overall. This is only the case if you went into a 4-year program (2 terms each year) and ran into no complications; your maximum debt is indeed $29,200. But what about the programs with 3 semesters? What about summer classes for a program that otherwise has 2 terms a year? What about the people that change programs, fail a year (never mind the complications of OSAP probation for this example), etc?

Given the rate of students changing programs for one reason or another, it's definitely not uncommon to graduate with a debt of higher than $30k.
Sure, we can argue permutations of a degree all day. But for a "standard 4-year degree," the cap is $30k.
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Oct 16, 2012
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Xiaohaibao wrote:
Jan 12th, 2013 12:26 pm
Cause if you live cheap when you are young, pay off your debts and start investing for the future, you will be living the good life down the road. It's about delayed gratification.
Delayed gratification to enjoy your millions when you're 60yrs old?

No thanks. I'll take a balance in life and enjoy my youth while I still have health.
Deal Addict
Aug 28, 2010
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I should have been on the news. I made about $3k a month clean = $1500/2 weeks = ~ 50k/year. I paid my student debt @ $2K a month until it was paid off.

You can easily balance life and debt if you try. I laugh at the sucker who thinks throwing $1000s in interest to "enjoy life now" is in a better position in 4-5 years? This debt should not take you 10 yrs to pay off!

Sacrificing 1 year will not cause you to lose out on the best years of your life. You will be surprised at how fast a year goes by.
Member
Jan 13, 2011
462 posts
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Kasakato wrote:
Jan 14th, 2013 3:41 am
Sure, we can argue permutations of a degree all day. But for a "standard 4-year degree," the cap is $30k.
if you live out away from home then I can easily understand a loan over 30k tuiution 6k+residence 10k x 4 = 64,000
Sr. Member
Nov 10, 2003
727 posts
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Concord
rpw_1 wrote:
Jan 13th, 2013 5:55 pm
I personally wouldn't pay off OSAP with a line of credit. It's true that the line of credit is cheaper and you'll save more in interest costs. But, OSAP is just a much safer debt to have, in my opinion.

If you lose your job or can't find a job right away after graduation or can only find a low paying job, there's no pressure to pay OSAP. You can apply for all sorts of payment assistance as well that you can't get with a bank loan or line of credit.

I personally feel more comfortable carrying OSAP debt than a bank loan.
So true... OSAP is the last thing you ever want to pay off...
1. Interest is tax deductable.
2. They don't hunt you down and take your house away when you are unemployed and can't pay the minimum. You simply apply and the payment stops. Or if you decide to return to school, payment stops too.
3. Your money is better off gambling in real estate or the stock market.

Lets give you an example..

Assume your OSAP is $500/month and you owe OSAP 50k for tuition.
Your cashflow monthly is -500/month. To pay it off in 2 years, you would have to pay $1583 more each month.

In 2 years... You can have $37992 cash and whatever balance is left on OSAP.
Or you can have nothing and it will take you another 16 months to save up that 37k cash.

The difference in 3 years and 8 months is you can have $69652 in cash and about 30k of OSAP debt... Despite what your logic tells you to be debt free.. You are 100% better off with 70k in CASH.
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Dec 7, 2009
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Not to mention what type of bank will give you a LOC with $30k OSAP debt at a lower interest rate? Chances are, you're young with no assets. What exactly would you be borrowing against?
In a perfect system, corporations would fear the government and the government would fear the people. - David Wong

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Sr. Member
Nov 10, 2003
727 posts
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Concord
Syne wrote:
Jan 14th, 2013 1:20 pm
Not to mention what type of bank will give you a LOC with $30k OSAP debt at a lower interest rate? Chances are, you're young with no assets. What exactly would you be borrowing against?
Bank will allow you to borrow against your age and future income. Your LOC might not be big, now day, I see 2k-5k.. but it is not impossible. Cash is not asset and banks lend money to people who will pay them back in a timely fashion.
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Jan 3, 2009
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Syne wrote:
Jan 14th, 2013 1:20 pm
Not to mention what type of bank will give you a LOC with $30k OSAP debt at a lower interest rate? Chances are, you're young with no assets. What exactly would you be borrowing against?
Unsecured.

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