Alberta Student Loan Relief Program

[Disoblige]

Has anyone qualified for the Alberta Student Loan Relief Program after they have graduated? Essentially, the government has a pre-determined debt level, and if you surpass that amount in loans, then you qualify for this assistance.

My issue is that I could have taken out $3-4000 more in my 4 years if I wanted to, but I chose not to just because I did not want to reach such a huge debt at the end. I know some of you are going to say "just store it in your bank account and leave it there", but I just decided that I didn't want to do that.

Anyways, I'm about $1500 away from the debt level, so I wanted to see how much does the government usually deducts so I evaluate if it's sensible to appeal their -automatic- decision.

Thanks folks.

[jltabot]

my sister just finished up her loans, and had ~$5000 deducted from her principle amount.

[jsn]

Do you know how much the minimum is? I only started taking loans out the last two and a half years. I wonder if I'd qualify.

[sabad66]

How did you apply already? Don't you have to wait until the November after you graduate?

[Little Dragon]

Originally posted by jsn
Do you know how much the minimum is? I only started taking loans out the last two and a half years. I wonder if I'd qualify.

I am curious what the minimum is as well.

[jltabot]

Originally posted by jsn
Do you know how much the minimum is? I only started taking loans out the last two and a half years. I wonder if I'd qualify.

I thought it was around $26k+. Can anyone (or OP) confirm?

[turbotrip]

$28,560 is the minimum

[JustinMCS]

It depends what you are taking. Here are the minimum debt levels:

Private Vocational: $3,570 for each 4-month semester
Diploma Program: $14,280 for two 8-month school years
Degree Program: $28,560 for four 8-month school years
Master's Program: $40,700
PhD Program: $45,700
Pharmacy: $33,560
Veterinary Medicine: $54,980
Chiropractic Study: $54,980
Optometry: $54,980
MBA: $54,980
Law: $58,550
Dentistry: $94,250
Medicine: $97,820

[chkolny541]

Originally posted by turbotrip
$28,560 is the minimum

:eek: :eek:

[HiTempguy1]

So, if I have $14k in non-government student loans plus another $7500 in provincial+federal loans, does that mean I qualify for this?

Very interested, as I always thought that after receiving the grades I did plus the amount of dead I had that this would apply (my sister received this a couple of years ago) but nothing ever came of it.

[AutodreamMarvin]

Do you have to apply for this?

I received loan relief even though I did not apply.

Not that i'm complaining though....:D

[turbotrip]

Originally posted by AutodreamMarvin
Do you have to apply for this?

I received loan relief even though I did not apply.

Not that i'm complaining though....:D
nope, its checked automatically for everyone

[Disoblige]

Yeah they will send you a letter saying if you qualified or not. The debt level minimum is as stated, $28,560.

I'm going to definitely try to appeal this then.

[dirtsniffer]

what do you get for being in the program?

[Disoblige]

Pretty sure it just means the government will take a percentage of your loans off automatically if you are above the debt level to make payments easier on you.

[Cos]

That is such crap. I worked my ass off to only get 4k in loans. Someone goes and racks up a bunch and they get some money given to them. Guess I should have the wife go and take out 30k in student loans so we can get the government to pay for some of our car.

[Disoblige]

I just talked to the BIGGEST cunt on the phone. She even disconnected me because she just didn't get it.

She was saying "If you were a high need student, you would have taken out the max amount you could have." That is such a load of bullshit, because not everyone is going to take out the MAX amount, especially if they don't know what the minimum debt level is. What if I could qualify for $10000, but only took out $8500 each year because I didn't want to reach such a high debt level at the end of my studies?

The point is, I qualified for amounts that would have reached thousands over the debt level of $28, 560. Then this cunt is saying that it doesn't matter because I would have taken out as much as I could if I was really needy. Yeah OK. I decided not to take out that much and actually made lots of sacrifices in my studies so I wouldn't go into such a huge repayment.

Don't you think I would have taken over $28,560 if i KNEW ALREADY that I would qualify for loan relief? Fucking stupid bitch. And the thing is, she said the level is $28,560 for my field of study, so it's not like they are comparing it to some med school student or something.

[Disoblige]

Whatever, I'm not going to appeal it.

Waste of time since you have to fax them a letter and let the board make a decision, etc. and chances are I will get diddly squat. Load of BS because they don't base this off of what you qualified for, but rather how much you took out. They are assuming everyone doesn't give a crap about what they owe in the end and that there are no consequences to taking out loans. In the end, if you take out $40k in loans, you are still going to pay interest if you can't pay it all within 6 months of graduating.

So the guy who takes out $40 k in loans and puts $10 k in the bank gets another cheque in the mail after he graduates! :clap: :rolleyes:

[SmAcKpOo]

I just got off the phone with both Federal and Provincal loan centers. My balance is $47,000 and I DO NOT qualify because my gross monthly income is over a certain amount.


GAY.

[Disoblige]

Originally posted by SmAcKpOo
I just got off the phone with both Federal and Provincal loan centers. My balance is $47,000 and I DO NOT qualify because my gross monthly income is over a certain amount.

GAY.
Did you always make that much or did you recently make that much? If you always made that much, then you wouldn't have been able to take out $47 000 in 4 years anyways. Unless I am missing some info here..

[SmAcKpOo]

I started making good money just before I graduated.

[polarice]

Alberta (EDULINX) knocked off 11 500 of my student loans through this program. I still owe them $14,246.43 and I owe the federal gov't $18,284.10.


I knew that when you take out student loans that if you graduate within the appropriate time and such they would knock some off. I didn't realize how much they would end up taking off though.

:eek:


EDIT: I never asked for them to reduce my loans. They sent me a letter in the mail saying they would credit the loan with that amount.

[Disoblige]

Were you doing a degree? So you took out ~43-44k in 4 years?

[HiTempguy1]

So basically, it sounds like I am boned because I didn't take enough money out? WTF kind of bullshit is this :banghead:

Good thing I plan on going back to University, then I'll rack up some mad debt :rolleyes:

[Disoblige]

^^ I know. What kind of Bullshit is that seriously. They are just assuming everyone is taking out the max amount.

Also if you call them, you might speak with stupid closed minded people that don't understand that some people might not want to take out every cent they can.

[polarice]

4 year degree, so money for tuition, books, and partial living expense covered. Should have took out less, looking back.

[woovic]

I heard the loan relief program is no longer around. Can anyone shed some light on this?

[dirtsniffer]

just happened to mine this summer.
thanks for the free money :)

[J-D]

I worked my ass off to pay mine off by the time I finished. :banghead:

[Little Dragon]

Originally posted by dirtsniffer
just happened to mine this summer.
thanks for the free money :)

How much was your total debt at the end and how much did they knock off?

[dirtsniffer]

it's lots, they took between 20 and 25% off.

[Disoblige]

Oh god, this thread..
A reminder how retarded this program is.

[chibwack]

I got ~8000 which left ~31k in loans

[themack89]

Why are you guys not taking the maximum... It's arbitrage opportunity with the 6 month grace period and low interest rates afterwards (prime plus a little bit I think).

It's a good safety cushion and you are going to pay tuition + living expenses one way or another anyways.

I have ~30k in loans, will apply for relief program, work rigs (well, water truck on rigs, still pays great) on Winter break and some after graduation so I don't have to pay any interest.

When someone offers you free money, take it.

[Disoblige]

Originally posted by themack89
Why are you guys not taking the maximum... It's arbitrage opportunity with the 6 month grace period and low interest rates afterwards (prime plus a little bit I think).

It's a good safety cushion and you are going to pay tuition + living expenses one way or another anyways.

I have ~30k in loans, will apply for relief program, work rigs (well, water truck on rigs, still pays great) on Winter break and some after graduation so I don't have to pay any interest.

When someone offers you free money, take it.
Wrong.

The bulk of your student loans comes out of Canada Student Loans, which has a high interest rate (5.5% currently).

You have people who actually need money and don't want to take out the max amount because they know they will take a while to pay back the loans.

Then you have people who take the max amount and bank it for leisure, and then they get a big fat reduction later with this relief program when they didn't even need the max amount at all.

Then you have people who actually need the money and deserves the loan relief.

[sh0ko]

Originally posted by themack89
Why are you guys not taking the maximum... It's arbitrage opportunity with the 6 month grace period and low interest rates afterwards (prime plus a little bit I think).

It's a good safety cushion and you are going to pay tuition + living expenses one way or another anyways.

I have ~30k in loans, will apply for relief program, work rigs (well, water truck on rigs, still pays great) on Winter break and some after graduation so I don't have to pay any interest.

When someone offers you free money, take it.

wasnt the last day for this program the 31st of july?

[SmAcKpOo]

For you people who are receiving loan relief, what is your annual income?

[themack89]

Originally posted by Disoblige

Wrong.

The bulk of your student loans comes out of Canada Student Loans, which has a high interest rate (5.5% currently).

You have people who actually need money and don't want to take out the max amount because they know they will take a while to pay back the loans.

Then you have people who take the max amount and bank it for leisure, and then they get a big fat reduction later with this relief program when they didn't even need the max amount at all.

Then you have people who actually need the money and deserves the loan relief.

What was wrong about what I said?

I know the Loans are divided up between Alberta and Federal. The Split is approximately 1.32 to 1 for Federal vs Alberta loan. You are correct, the Federal Loan is currently 5.5% (Prime + 2.5%), but the Alberta Loan is calculated using Floating Prime Rate (you can opt for prime + 2% up to maximum of 5%), which is currently 3%.

Soooo... Effective Loan rate is currently:
(1.32 * 5.5 + 1 * 3.0) / 2.32 = (10.26) / 2.32 = 4.42%

Which is the same as Prime + 1.42%. What did I say before? Let's go see.


prime plus a little bit I think

Okay. Just checking.

And in response to your political remarks... I don't see your point. It's not like they are preventing others from receiving loans, and who cares what they do with the money because it's their money (granted, they have yet to 'earn' the money, but it is technically their income received 'today').

If certain individuals actually ARE responsible for preventing others from receiving loans, then I would like to see some literature on this so I can come up with a more educated response.

Aside from that, I'm glad you ignored everything else I said because it means you agree with me... Right?


wasnt the last day for this program the 31st of july?

I don't actually know... I just said that for the sake of saying it lol.

[themack89]

As a side note, there is a strategy you can take to delay your Student Loan interest accrual: take an extra course. There is a form you can fill out for Part-Time studies requesting that it be delayed. If you do this during a 4 month semester (Fall or Winter), it buys you time to earn more money without extra interest payments (less the $500 you paid for the course, but you'd probably make that back pretty fast anyways).

Don't quote me on this as I cannot confirm or deny if this will work. But I'm pretty sure its possible.

[Disoblige]

Originally posted by themack89

I know the Loans are divided up between Alberta and Federal. The Split is approximately 1.32 to 1 for Federal vs Alberta loan.
Wrong. I asked 4 people in my office who are young graduates in Alberta (U of A and U of C) and they were 1.6-1.7 to 1. Myself included, which makes 5. I don't know where you came up with that number.

Judging on how educated you are on student loans, since you think you need to apply for the relief program and you don't even know how interest free status works when you go back into studies, your info seems credible :rolleyes:


Originally posted by themack89

What did I say before? Let's go see.

Originally posted by themack89
It's arbitrage opportunity with the 6 month grace period and low interest rates afterwards (prime plus a little bit I think).
The fact you think 4.42% with your calculations (which is wrong anyways) is a low interest rate already is ridiculous. It's laughable actually.

And please don't tell me 1.6-1.7 is "approximate" to 1.32. That's like saying I only lost the quarter mile by 2 seconds.


Originally posted by themack89

and who cares what they do with the money because it's their money (granted, they have yet to 'earn' the money, but it is technically their income received 'today').

Too many people I've talked to in my 4 years of education (whether from SAIT, U of C, or U of A) said the student loan program is hilarious. Some barely get what they want, and others applied in a way where they have an extra couple grand to "invest" with. So if you don't need the money for what it's intended for (education and living), then don't take the money? Simple ethical concept. But rarely does anyone do that. Maybe if they conduct more audits they would see how many people are fibbing information ;)

So you'd have these kids who are in a decent financial situation, pretend they live alone or whatever, scam student loans, get enough loans to get into the relief program, and get a rebate back :rofl:

[Type_S1]

I was pretty pissed when I figured out I was under $1000 off from getting this free money. I didn't take loans in my 4th year because I had a great income and could have paid off my student loans in full at that time. If I took a couple grand I probably would have got a $5000 "rebate" like most of the rich kids who maxed them out to party even more under their parents noses.

[Disoblige]

Originally posted by Type_S1
I was pretty pissed when I figured out I was under $1000 off from getting this free money.
:werd:

It definitely sucks, as I was in your exact shoes (hence this thread). But we are more fortunate.

Can you imagine how pissed you'd be if you were someone who wanted to go to school, but knew after the 4 years that you'd probably take at least 5 years minimum to pay back the loan (best possible scenario). Therefore, you would rather make more personal sacrifices than to take out the max loan amount and be boned later w/ interest and debt. I have a friend like this, and boy I feel so bad for him.

It would have been better if he failed a couple course to delay his graduation and take out more loans to qualify him for the relief program :banghead:

I don't see how some people do not understand why people in poor financial situations do not want to take out the max amount.

[403ep3]

Damn I was off by a couple thousand to get the minimum; I guess that's what I get for working my ass off in the summer to decrease my loan amounts!

I have to start paying my loans now :confused:

Interest sucks:
AB 3%
CDN 5.5%

[tangj]

^ Also they removed the loan relief program.
http://www.debt101.ca/student-loan-advice/alberta-loan-relief

I called in to ask about the program and they told me they removed the program and in place of it, when your in your final year of study, for degree students you receive a 2000 grant, and for diploma you get 1000.

[Maxx Mazda]

Does this apply to student LOC's?

[tangj]

I doubt it, i believe the loans have to be obtained through the provincial and national student loan centers.

[403ep3]

LOC's are different. Yeah I got the 2000 from graduating recently

[msommers]

$2000 for graduating? What a load of fucking horseshit.

A buddy was telling me trades graduates who take the Red Seal and pass get $2000. I hope to God that's not true.

And I thought rich kids couldn't get student loans? Frick I had to sell my car to go back to school because my Mom didn't want to pay at the time, and she made too much money and I couldn't qualify.

The entire student loans program needs to be re-evaluated. Too many people are abusing the shit out of it. A student should not be able to take out a huge loan and use the money they didn't spend to invest.

[HiTempguy1]

Originally posted by msommers

The entire student loans program needs to be re-evaluated. Too many people are abusing the shit out of it. A student should not be able to take out a huge loan and use the money they didn't spend to invest.

Student loan interest rates are terrible typically. I don't think its a bad thing that a student can take out MORE than budgeted for. You aren't just paying for school, you are typically paying to live (most people are too busy to work a part time job with school, or haven't had the time to save up the $15k+ living expenses books and tuition costs over the course of 8 months). Sometimes shit happens, I know I ran out of money quickly.

I don't see why you'd invest with loan money at over a 5% interest rate.

[jdmSiR]

Thanks for posting this!

[Matty_10]

Originally posted by msommers
$2000 for graduating? What a load of fucking horseshit.

A buddy was telling me trades graduates who take the Red Seal and pass get $2000. I hope to God that's not true.
1000 for first year
1000 for second year
2000 once you get your j-man

[summerlove.xo]

They still have a loan forgiveness program for medical professions, but pretty bummed out to hear about how they got rid of the student loan relief program :(

[SmAcKpOo]

Yea but you can still get disbursements for just having a loan. I got 12K worth of "disbursements" for no reason other than having a loan greater than X balance.

Remember, your student loan interest is tax deductible too.

[Disoblige]

If I'm hearing this correctly, so a person with a degree taking $40k out for example, would still get only 2k even if the same person took out $29k?

Is that really more fair?