Repayment Assisstance Plan (RAP) Issues - Long or Short Repayment Term?

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Long or Short Repayment Term?

Printed From: CanadaStudentDebt.ca
Category: Government Program Problems
Forum Name: Repayment Assisstance Plan (RAP) Issues
Forum Description: Rules, regulations and problems (Formerly Interest Relief and Debt Reduction)
URL: https://www.canadastudentdebt.ca/forum_posts.asp?TID=4331
Printed Date: 27/March/2026 at 5:35am
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Topic: Long or Short Repayment Term?

Posted By: Marlow
Subject: Long or Short Repayment Term?
Date Posted: 01/July/2007 at 4:52am

Hello,

First of all, thank goodness for this site. The misery of student loans is compounded by the ignorance that the unholy cabal of governments and banks imposes on us. This site is a beacon of hope.

My question has to do with repayment terms. After I graduated (2002), I was almost flat broke, so to avoid defaulting I renegotiated my payment terms with the CIBC (Ontario) so that I would pay less per month, but for fifteen years instead of ten. I now pay about $550/month. After five years of payments, I think I am finally (just this month) paying down principle instead of interest.

I am doing better now financially, and I am wondering whether I should re-renegotiate again to increase my payments in a shorter time frame.

My worries are as follows:

A) Banks are so inherently evil that I am afraid to speak to them -- what if they find out that I have a higher income now and then jack up my payments to some arbitrary amount? Any contact seems perilous; it's like touching plutonium.

B) If I am indeed done paying the interest (how would I know for sure?), then should I stick with the 15-year plan, since the total is the same?

C) If I call the CIBC student loan dungeon and update my information (including income), do I have any power at all over the consequences?

Sorry for the length of this post -- and thanks in advance.

Marlow

Replies:

Posted By: Buff
Date Posted: 01/July/2007 at 1:13pm

I have an Ontario CIBC student loan too. It's my one undefaulted loan. I also changed my payment terms a few times and it's currenty at $50 per month. I don't bother phoning them to make changes anymore. If I have a few dollars extra, I just make an extra payment over the internet. I know they don't like it because it cuts down on the interest they charge me, but they are obligated to accept it.

My suggestion would be to make bigger payments or more payments to pay it off sooner. You don't have to give them your financial information, just payment information. They won't jack up your payments. As far as I know, they can't do that without your approval and signature.

Buff

Posted By: SusanfromAB
Date Posted: 02/July/2007 at 8:49am

As far as I know, you are never done paying interest on student loans. The calculate a daily interest charge, if that gives you any indication! I called RBC St Lns a few weeks ago and told her I was taking a bank draft into a RBC Branch to pay the balance off...she told me to add an additional $3.81 x 3 days because the payment gets processed in Ontario (I'm in AB)!

I agree with Buff - just throw extra money on it. Increase your payments on your own schedule, if you want/are able to; you'll just need to make the additional payment instead of getting them involved in changing the terms.

-------------
Hitting them hard!

Posted By: Marlow
Date Posted: 02/July/2007 at 3:21pm

Thanks for your suggestions. I will try to find out whether the interest is paid "up front" or not. I hope it is, because until this month I have not seen my principle decrease at all. I should have mentioned, by the way, that I have a federal, a provincial, and a "combined" loan; I only have access through CIBC to information on the first two.

How do I make payments online? I would like to do this, but it doesn't seem to be available through CIBC online banking.

Posted By: Buff
Date Posted: 03/July/2007 at 4:42am

It is available through online banking. Set it up as a bill payment. It's listed as CIBC NATIONAL STUDENT CTR. Your account number is your 7 digit loan number.

Buff

Posted By: Buff
Date Posted: 03/July/2007 at 4:43am

Correction, it's CIBC NATIONAL STUDENT LOAN CTR.