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Student Loan Question

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  1. Jun 20, 2004 #1
    I’m starting school in September and I’ll need to apply for a student loan soon. I’ll be going to a university in Ontario, Canada. Anyway, I’m not sure how much to apply for because I have a bunch of scholarship applications still pending approval, so I think I might just apply for the max and use what I need. Now with the Ontario Student Loan Program, OSAP, interest does not start to be computed on he loan until after you are done school and working. So anyway, if I do happen to get all the scholarships I’ll be left with an excess amount of money. What I’d like to do is invest the money in a 3 or 4 year GIC, and then use the interest accumulated on that to help pay off some of the loan sometime in the future. My question is, if I have this money invested, would it inhibit my ability to get another loan the next year? (Because I have to declare my investments.)

    Any help would be appreciated. :smile:
     
  2. jcsd
  3. Jun 20, 2004 #2

    Nec

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    What is GIC ?
     
  4. Jun 20, 2004 #3
    It’s a guaranteed investment plan. You invest some money, and you are guaranteed a certain return on it after a certain time. Except you cannot touch the money once it’s invested. For example, $5000 invested in a GIC for 5 years at 4.6%/yr interest compounded annually would make you $1260.78 after the 5 years.
     
  5. Jun 21, 2004 #4

    Nec

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    Oh, that much ? 5 years is not a long time at all especially to students who are busy studying, if I were you I would try to invest more to get more in return after all.
     
  6. Jun 21, 2004 #5
    Oh yeah, I know. I would keep adding the excess every year. My main problem is that when I go to apply for ANOTHER loan and they see that I have all this money invested, would they give me another loan?
     
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