Student Loan Forgiveness

[NoPulp]

Finished school in April 2015. Have an Alberta and Canadian student loan, don't owe very much though. Plan on paying it off by Jan 2016. Anyways my grace period is about to expire and they're going to ask for money soon.

I am wondering about "Forgiveness" (or what is the technical term? Is it even a thing?). I looked on both of my accounts and the balance is what I've received. Well plus the interest rate the Canadian loan charges during the grace period, super lame...
When would I know if they have taken any off my loan? Will I be notified when they send the money request in the mail?


I'm not expecting much, but it would be cool to have to pay back less money.

Anyone with recent experience?

[Type_S1]

They send you a letter a few months after graduation. Unless you have over something like $26k in loans they won't knock any off if I remember correctly.

[NoPulp]

Dang it. I'm well below that.
Oh well.
Thanks

[Zhao Kan]

Federal didn't forgive a dime of mine but BC forgave it in its entirety.

No letter, no notice, it just went from good standing to zero.

[The BMW Guy]

They have completion grants now. You should have received a letter. If you didn't take loans out in your last year of school though, you would have had to apply for it manually.

[move]

Originally posted by The BMW Guy
They have completion grants now. You should have received a letter. If you didn't take loans out in your last year of school though, you would have had to apply for it manually.

do you have to let them know youre graduating or anything? finishing school this december and would like to save as much money as possible

[oilerfan4lyfe]

I owed over $130k and graduated last year. They gave me $2000 for graduating and that's it. No more forgiveness like there used to be. They want their $$.

[ZenOps]

Canada has always been tough on student loans. Never expected the US to follow Canadas model though.

[msommers]

Originally posted by oilerfan4lyfe
I owed over $130k and graduated last year. They gave me $2000 for graduating and that's it. No more forgiveness like there used to be. They want their $$.

Are you in medicine or law?

[NoPulp]

Yikes! I owe next to nothing, was just curious if it was a thing and when I would notice it.

[The BMW Guy]

Originally posted by move


do you have to let them know youre graduating or anything? finishing school this december and would like to save as much money as possible

Yes. Google it, there is a form you have to fill out and send in before graduating. I don't have the link handy.

[oilerfan4lyfe]

Originally posted by msommers


Are you in medicine or law?

Med

I heard stories that a few years ago people would have 25-50% of their loans forgiven which for me would obviously be a crapload, but after continuously trying and getting nowhere, I've given up.

I guess it's not the end of the world though. I borrowed the money, it's not unreasonable for them to want me to pay it back. They're giving me 14 years to do it so maybe by then I'll actually be done training and be able to pay it back.

[Xtrema]

Originally posted by oilerfan4lyfe


Med

I heard stories that a few years ago people would have 25-50% of their loans forgiven which for me would obviously be a crapload, but after continuously trying and getting nowhere, I've given up.

I guess it's not the end of the world though. I borrowed the money, it's not unreasonable for them to want me to pay it back. They're giving me 14 years to do it so maybe by then I'll actually be done training and be able to pay it back.

Doctors clear $200-$400k/yr after expenses You don't need 14 years unless you are staying in academic/research.

Yes you will be poor for a few years but given most doctors can work til 60 and beyond if they wanted to. You shouldn't be stress for cash.

[suntan]

It's not really worth paying off early due to the tax credit you get from the loan payment. On the other hand mine wasn't $130K so you'll probably want to do the math first.

Klein forgave $20K of my student loans way back in the day.

[Cos]

.

[NoPulp]

Got my National loan letter in the mail yesterday. No reduction. Fingers crossed for provincial but I doubt it.

Wish I would have known about the grant since I didn't take a loan for my last year. Oh well, don't owe much and should be debt free very soon.

[msommers]

Originally posted by oilerfan4lyfe


Med

I heard stories that a few years ago people would have 25-50% of their loans forgiven which for me would obviously be a crapload, but after continuously trying and getting nowhere, I've given up.

I guess it's not the end of the world though. I borrowed the money, it's not unreasonable for them to want me to pay it back. They're giving me 14 years to do it so maybe by then I'll actually be done training and be able to pay it back.

I've heard of some forgiveness if you commit to working in the northern communities.

Don't think you could pay me enough though

[Zhao Kan]

Originally posted by Cos


I had way less than $26,000 in loans too ($5k I think). Went to go and pay them after my first few paycheques and was surprised to find that I only owed $3500 or something. $1500 just disappeared off my Alberta one.

That's the same amount mine was for too, give or take a bit. I paid the federal one in a lump sum because they started hassling me, and I didn't do anything withe the BC one because the bank said it was still in good standing and they weren't sending me notices to pay it. So I just left it, and left it, and checked up on it every so often, and left it, and then it just disappeared.

This was all 10+ years ago though. When did they forgive yours?

[Cos]

.

[oilerfan4lyfe]

Originally posted by Xtrema


Doctors clear $200-$400k/yr after expenses You don't need 14 years unless you are staying in academic/research.

Yes you will be poor for a few years but given most doctors can work til 60 and beyond if they wanted to. You shouldn't be stress for cash.

I'll believe it when I see it on my paycheques. Until then it feels like I'll always be poor haha. I worked a shift last Sunday in which I made less than minimum wage when I calculated what their stipend paid me for the hours I worked. Guess it's what I signed up for though.

Originally posted by suntan
It's not really worth paying off early due to the tax credit you get from the loan payment. On the other hand mine wasn't $130K so you'll probably want to do the math first.

Klein forgave $20K of my student loans way back in the day.

Lucky you got that money forgiven. The tax credit makes it worth holding off on the Alberta portion of the loan because it's at prime. The Canadian portion though is prime + 2.5 which is almost double since prime is 2.7%. Makes way more sense to pay it off using an LOC. I believe only 20% of the loan interest is tax deductible. There are calculators for all of this online.

Originally posted by msommers


I've heard of some forgiveness if you commit to working in the northern communities.

Don't think you could pay me enough though

Haha it's not as bad as you think. It just has to be a "rural" area. Places like Strathmore qualify. They give $8,000/yr if >50 days or >400 hours are worked in a rural community but it's only towards the Canadian portion of the loans, not the Alberta part. If there are any nurses out there, you can qualify for it as well.