Tuesday, January 6, 2009

University, a Financial Choice (Part I)

I know quite a few people who are applying for university this year. Let me begin with a piece of friendly advice, choose a financially sensible location. If you're unconvinced, just spend two minutes playing around with the OSAP Repayment Calculator and enter the following

Estimated total expected debt on graduation: $30,000 (7500 x 4) (I know that seems a lot right now, but it should be that much in four years)

Click "Calculate Monthly Payment" and voila. Assuming your prime interest rate is 6% (fat chance), you will be paying $393 per month after graduation FOR NINE AND A HALF YEARS.

Trust me, that's a lot of coin. Let me show you what 400 bucks a month for 9.5 years can buy you...

That's right - it's like buying the A3 you never drove. Did I mention that it's fully paid and loaded?

Note 1: Part II to come...