Negotiating Interest Payments during Study

[positivepinnaple]

Hello,

I'm looking into LOC for law school and I've seen some forms about negotiating the interest payments during study. I've also seen some negotiate below prime interest rates. Can anyone shed light on there experiences in this regard. Additionally, is this something that should matter in the grand scheme of things.

Thanks

[LMP]

It matters in so far as it saves you money. But like anything you need to determine if the time and energy is worth it. 

It's been a while since I had to secure a PSLOC and I think the environment may have shifted, I'm not sure how likely you are to get movement on your interest rate (below prime seems unlikely). 

At the very least you should be shopping around between banks. You can also try pushing a bit, especially if you have some leverage. But don't feel bad or like you're getting ripped off (more than usual) if you don't get any concessions. 

[GoBigOrGoHome]

On 4/17/2024 at 9:27 AM, positivepinnaple said:

Hello,

I'm looking into LOC for law school and I've seen some forms about negotiating the interest payments during study. I've also seen some negotiate below prime interest rates. Can anyone shed light on there experiences in this regard. Additionally, is this something that should matter in the grand scheme of things.

Thanks

I don’t have an answer but this is something that should matter in the grand scheme of things.

I know someone that graduated law school 10 years ago, still has their line of credit and has been dumb enough to not establish an emergency fund. If they get let go from their firm, they are effectively fucked. 

If you can find any way to minimize your debt, do it. Prioritize your private debt in contrast to government student loans. 

I think that our law schools need to be more proactive in having a mandatory session on finances in orientation. We no longer have rock bottom interest rates and financial instability will impact your ability to practice as a lawyer. I think in at least one province you have to report if you have filed a consumer proposal and will be marked with a restriction on practice. 

I commend you for thinking about this now instead of afterwards.

I am trying to pay off my line of credit that I have used before I am done law because it stresses me out that much. Applying for bursaries and scholarships as much as I can.