Can you negotiate interest rate for a professional student line of credit?

[Motherofdragons]

Hello!

Im wondering if negotiating the interest rate for this line of credit is possible. Scotia told me it’s set in stone and cannot be negotiated. I’m wondering if this is indeed the case, or perhaps possible with other banks. I have never applied for one before.

Thank you, 

[BlockedQuebecois]

If the rate you’re being offered is less than prime, any negotiations are likely to fail. There are very limited circumstances in which banks are likely to negotiate below prime, which is the going rate for law school PSLOCs. Law students don’t have much leverage, since “give me an unsecured line of credit at the rate I want or else I won’t go to law school” is not a particularly strong negotiating position.

If the rate you are being offered is higher than prime, you can likely get a favourable rate elsewhere. If you get a favourable rate, you can circle back to Scotiabank and see if they’ll match it. 

[Motherofdragons]

@BlockedQuebecoisThanks for your response. 

Damn I was hoping for below prime. I’m approved for $135k at prime +0%

I had gone with them because they told me it would take a day, which mattered to me as I’m moving cities and rentals disappear quickly. TD offered more money, same rate, but was up front about it taking 2 weeks.

Scotia ended up taking over 3 weeks. I was hoping this would persuade them to lower the rate but it didn’t. 

 

Edited August 5, 2022 by Motherofdragons

[ccounsel2024]

Medical students get less than prime, but never heard of law students getting anything but prime as the lowest.