Comments on: Student Loans 101 http://oncampus.macleans.ca/education/2008/11/14/your-guide-to-student-loans/ Thu, 09 Feb 2012 18:10:52 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: T. Thwim http://oncampus.macleans.ca/education/2008/11/14/your-guide-to-student-loans/comment-page-1/#comment-7289 T. Thwim Fri, 21 Nov 2008 17:50:49 +0000 http://oncampus.macleans.ca/education/2008/11/14/your-guide-to-student-loans/#comment-7289 Another thing you might want to consider is to specifically DENY the NSLP the right to access your bank account directly. Never, ever provide them with authorization to use your bank account. It means more work for you in that you have to write up post-dated cheques and the like, but it means a lot less hassle as screw-ups between NSLP departments like interest relief and payment don't end up coming out of your bank account. If you've already provided them with that authority, you can write a letter and cc it to your bank politely requesting that this authority be cancelled. I had one friend who had his automatic loan payment withdrawn three times in the same week, and while the NSLP acknowledged that it was a mistake and wouldn't happen again they refused to give the money back, instead applying it directly to his principle. I suppose it probably helped him save money in interest in the long run, but probably not enough to pay for the stress it caused between him and his landlord. Also, don't be afraid of the revision in terms as the article suggests, so long as you can keep a committment to yourself to pay more than the minimum student loan payment before making any leisure purchases. That way, if times get a bit tougher, you don't have to negotiate the revision in terms when the month or two delay that it imposes can cause serious problems in your cash flow. Now if you honestly aren't able to keep that committment, then the article's right. The extra interest you'll have to pay for the reduction in payment really isn't worth it. Consider it a last resort. Another thing you might want to consider is to specifically DENY the NSLP the right to access your bank account directly. Never, ever provide them with authorization to use your bank account. It means more work for you in that you have to write up post-dated cheques and the like, but it means a lot less hassle as screw-ups between NSLP departments like interest relief and payment don’t end up coming out of your bank account. If you’ve already provided them with that authority, you can write a letter and cc it to your bank politely requesting that this authority be cancelled.

I had one friend who had his automatic loan payment withdrawn three times in the same week, and while the NSLP acknowledged that it was a mistake and wouldn’t happen again they refused to give the money back, instead applying it directly to his principle. I suppose it probably helped him save money in interest in the long run, but probably not enough to pay for the stress it caused between him and his landlord.

Also, don’t be afraid of the revision in terms as the article suggests, so long as you can keep a committment to yourself to pay more than the minimum student loan payment before making any leisure purchases. That way, if times get a bit tougher, you don’t have to negotiate the revision in terms when the month or two delay that it imposes can cause serious problems in your cash flow. Now if you honestly aren’t able to keep that committment, then the article’s right. The extra interest you’ll have to pay for the reduction in payment really isn’t worth it. Consider it a last resort.

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