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Back To School Loan Advice

  • Last Updated:
  • Jan 29th, 2018 9:06 am
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[OP]
Newbie
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Dec 26, 2006
69 posts
31 upvotes

Back To School Loan Advice

My son has applied to enter a masters program in September. He has diligently saved for his tuition and accommodation and part of his living expenses. He will however need to take out a loan of about $10k.

A few questions...

1. Since his 2017 income was about $65k, is it a good idea for him to invest some of his savings in a RRSP and take a LLP Loan against this RRSP? What are the pros and cons of doing this?

2. What is his best option for a student load. He is Ontario based but plans to study in Quebec. He will be on a leave of absence and can go back to his job once he completes his masters.

Thanks...
1 reply
Deal Guru
Feb 22, 2011
10134 posts
12542 upvotes
Toronto
Check with the school, many have great partnerships. For my post grad TD gave prime + 0. The problem with the LLP is that when you pay it back the amount is not tax deductible. You would presumably make more after the post grad so not having the contributions being tax deductible would likely be worse. It depends on his financial position though, if he is maxing it out anyway then it might not matter.

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