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jen_the_great
Joined: 09 Sep 2006
Location: Gangnam, Seoul
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 Posted: Wed May 14, 2008 6:30 am Post subject: Student loans and interest relief |
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Like many teachers, I'm going back to Korea to pay off my massive student debt (OSAP). The last time I was in Seoul I paid over $2500 in interest on my loan, so I set up interest relief (interest isn't accumulated and I don't have to make loan payments) when I got back to Canada. Interest relief lasts for 6 months unless you renew and the conditions are:
1. You have little income
2. You live in Canada
I'm leaving for Seoul again next week and need to tell the loan people whether I want to renew my interest relief. Now I know that for the next six months, neither of these conditions will apply, but they do technically for the next week when I would talk to them. Does anyone have experience getting interest relief while in Korea? |
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Draz
Joined: 27 Jun 2007
Location: Land of Morning Clam
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| Posted: Wed May 14, 2008 4:33 pm Post subject: |
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I'm not going to apply for it.
Technically, you don't have to "live" in Canada. You have to be a resident. Being a resident or not is also how they decide if you have to pay Canadian tax.
The interest on my student loan is less than the tax I would have to pay, so I am not going for interest relief. |
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jen_the_great
Joined: 09 Sep 2006
Location: Gangnam, Seoul
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| Posted: Thu May 15, 2008 3:40 pm Post subject: |
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| Draz wrote: |
I'm not going to apply for it.
Technically, you don't have to "live" in Canada. You have to be a resident. Being a resident or not is also how they decide if you have to pay Canadian tax.
The interest on my student loan is less than the tax I would have to pay, so I am not going for interest relief. |
I think it's fairly easy to extend it once you have it declared, so it's a different situation. And even as a resident, you don't have to declare your income (or at least I didn't), so that shouldn't affect anything. I still got my GST cheques while I was in Korea before, so I'm assuming it doesn't really make a difference. |
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Positive Realist
Joined: 11 Jan 2007
Location: Somewhere Damn Azz Cold
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| Posted: Thu May 15, 2008 10:41 pm Post subject: |
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| I just did this last week. Call them, say you're in Canada, you don't have a job and you've been supported by your friends/family so you don't have any pay stubs. They will pre-qualify you for your extension, send you a form to sign and 5 days later you'll know. You can register on www.canlearn.ca for your status and your loan repayment info. and as of last month they were working on setting up an on-line interest relief application. |
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DaeguKid
Joined: 09 Dec 2006
Location: Daegu
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| Posted: Thu May 15, 2008 10:53 pm Post subject: |
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I used my IR to the MAX!!!
I lived in the UK and would sort out the interest relief papers while i was there...a bit tricky, but pulled it off...While i was in the UK I made boat loads of cash and sent it all home. Paid off the loan and killed the account. End of story...It took me 18 months of IR of which i did 2 of the three relief applications while i was in the UK.
If I were you, this is what I would do...get another 6 months before you go. Open another bank account with another bank. Send the money from Korea to the new account...transfer it into your Student Loan account and pay it off...the reason for doing so, is to not let your loan bank no you are overseas. Pay if off ASAP and your done!
Anyhow, if you got anymore questions i would be happy to help you. PM me
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Draz
Joined: 27 Jun 2007
Location: Land of Morning Clam
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| Posted: Thu May 15, 2008 11:28 pm Post subject: |
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| jen_the_great wrote: |
| Draz wrote: |
I'm not going to apply for it.
Technically, you don't have to "live" in Canada. You have to be a resident. Being a resident or not is also how they decide if you have to pay Canadian tax.
The interest on my student loan is less than the tax I would have to pay, so I am not going for interest relief. |
I think it's fairly easy to extend it once you have it declared, so it's a different situation. And even as a resident, you don't have to declare your income (or at least I didn't), so that shouldn't affect anything. I still got my GST cheques while I was in Korea before, so I'm assuming it doesn't really make a difference. |
It depends on the province how easy it is to extend. In Saskatchewan you have to do the whole application over again. I'm not cashing my GST cheques either. Better safe than sorry imo.
My student loan will be mostly gone by the time my interest relief ends anyway. |
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