Other Sources of Funding
Professional Student Line of Credit
Medical school is expensive, and banks are more than willing to provide students with a professional line of credit, often in the range of $200,000 or more. The difference between a government student loan and a bank line of credit is that with a line of credit, you start paying interest right away on any funds that you use, which turns into a monthly interest expense in your budget. Many students find that these interest payments are paid through further advances on their line of credit. Another thing to keep in mind is that you are not guaranteed to receive the maximum as many banks will advance funds based on individual credit ratings and requirements. The interest rates for LOC’s are based on prime, so these are subject to change. It is important that you check out the websites of the different banks and make sure that the bank you choose is giving you the best option.
Life-Long Learning Program
If you are in the position of having large savings in an RRSP, the Lifelong Learning Plan will allow you (or your spouse/partner on your behalf) to withdraw up to $10,000 per year to a maximum of $20,000 tax free. You do not have to pay any interest on the amount you withdraw, and you will have up to ten years to repay the full amount that you borrowed from your RRSP. For more information, please visit http://www.cra-arc.gc.ca/E/pub/tg/rc4112/README.html.