Hyundai Genesis Forum banner
1 - 20 of 21 Posts

·
Explosively Canadian
Joined
·
290 Posts
Discussion Starter · #1 · (Edited)
This is just a little rant, because I'm just so bothered by it.

So, I've decided to bite the bullet and decide to attend a college to try to get some post-secondary out of the way. My plan was simple: work full time to get a reliable car that could be used to drive to and from college, and then attend college in a two-year criminology diploma program while working part time. Living at home as a "dependent independent" definitely had major benefits, contributing for room and board through errands (and dealing with a mentally ill family member) rather than hard cash. But I figured it was about time I get out on my own and start as an "independent independent" instead.

Unfortunately, if I want to attend university, my income isn't enough to pay for room and board for anything other than a roommate relationship, which I honestly don't think I would be able to stomach. Even with that relationship, I would only be able to afford room and board, with zero other expenses. So, the option seemed to be to apply for financial assistance.

Sadly, I'm faced with a horrible reality: my car, which I need to commute to work on Sunday mornings (no transit route exists at the time I need to leave for work), is considered an "asset" by the government's student loan program. Under Canada's benefits, assets owned by the student are assessed at 100% value against the student's expected education cost. In layman's terms: you are expected to sell it to attend university. All value in my assets, in this case the $25000 or so remaining in the car, are considered to be money available which means I qualify for zero financial assistance.

If I were to appeal the need for the car -- as it's necessary to have a vehicle to get to work -- I would have to prove why I need a vehicle valued at over $5000 to do so, on company letterhead. Somehow I think it wouldn't fly.

While I can see it from the government's perspective, since most low-to-middle-income college kids don't exactly drive sporty coupes into school every day, I still feel like it's unfair...
 

·
Premium Member
Joined
·
13,004 Posts
my brother got shafted like that when he went to BCIT, my dad got his buyout when BCRail got bought by CN and even though it wasn't my brothers money they reviewed my parents finances because in the governments eyes it was their duty to pay for his education. Then the government came along and taxed the piss out of my parents leaving them with basically nothing from the buyout.

Summary, my brother had to wait until my parents were poor before the government would give him a loan, and even then refused him living expenses and he had to hitchhike from Squamish to BCIT every day to go to school.

BC really is a crappy place to live unless you were born with a silver spoon in your mouth, which few really are.
 

·
Registered
Joined
·
165 Posts
I wonder if you could "gift" the car to your parents and have them put you on as the primary driver.

Of course you would have to trust your parents to "gift" it back to you after you finish school.

If you gift it within the family you can avoid paying taxes on the transfer, not sure if there is a dollar limit on the gift though.

Good luck, with it all, I've had friends that had trouble with that as well in similar boats to what both of you describe.
 

·
Registered
Joined
·
196 Posts
WAY back (10 years) when I was in University, the same thing happened to me. One year I bought a 2000 Toyota Celica (saved up a bunch of money over the summer and was able to pay cash). I was going in to my 4th year so I figured the car purchase needed to be something more long term, since I would be working the year after.

Well the gov got word of this and I lost my financial backing for my final year (they waited until I had started my 3rd week to let me know this). I ended up having to get student loan from the bank for that year. Not a big huge deal but annoying in any case.

As was suggested before, you could gift the car to your parents, and have them just "let you drive it". Although I don't know that you could get away with that now that they know you have the car already.
 

·
Registered
Joined
·
1,112 Posts
I understand where the government is coming from, if you're able to afford a $25 000 car, then you can probably afford your tuition as well. If you're not, the government see you as a risk of not being able to pay back to loan you're borrowed from them.
Sometime you need to sacrifice things in the present to get ahead in the future. I know it sucks because they put everyone in the same boat even though some of use are the exception (house mortgage w\is another example).
 

·
Registered
Joined
·
146 Posts
Personally on a two year course, do you like the car- keep it, youll lose to much to justify selling it. Go to the bank and get a loan threw them. The down fall with this is that intrest collects on the money used from day one, unlike a student loan that starts 6 months after school is finished. but on a two year course this isnt the end of the world. cause lets say you qualify for 30 grand..... if you only use ten, you only pay interest on the 10 grand. and you might even be able to get a better interest rate threw the bank at that, with the governments 7% interest rate, they arent exactly helping you out.....they are making huge money off of graduates.

best of luck! but i would take a serious look at the student loan threw a bank
 

·
Ontario Genesis Club
Joined
·
3,356 Posts
Yeah that's sucks man. I'm looking at going back to school and I know I qualify for zero as aid as well. I'm lucky though I'm in an occupation that would still pay me enough part time to afford school and my vehicles.
 

·
Registered
Joined
·
1,660 Posts
Whats more important, your car or your future? When I was in school, I drove a busted up Golf and later a Jetta for 4 years. Sell the GC and get a cheap/reliable Civic or Corolla to drive for a few years

Im sure you can get a LOC/loan from your bank using the car as security.
 

·
The whistles go WOO! WOO!
Joined
·
829 Posts
Also consider that when you get student loans (edit: original said osap, then saw you were from QC) generally a portion of it is forgiven. Why should the gov't be subsidizing your education if you can afford a new car? (edit: unless that isn't the case, sorry for my ontario-centric attitude ;))

For the 5 years i was in school, I had no vehicle. Luckily in Toronto distances aren't too great, so I rode my bike 12 months a year.

If you do /need/ a vehicle, find a thousand dollar civic and enjoy the poor student life.

Also I suggest getting a 2/3 bdrm apt and getting some roomates. Its a valuable experience and saves you a ton of cash.

I'd also suggest getting used to drinking dollar beer and eating ramen, as that's part of the post secondary experience too :D. The good news is real food and fast cars are twice as exhilarating after living poor for so long :rofl:.
 

·
Registered
Joined
·
352 Posts
There's a simple explanation for why the government does this.

During my first year in university, I remember walking to my residence building from the bookstore.

A white, GEO Tracker drove by and I was able to see the license plate. It read...

OSAP

So, if the government didn't clamp down on who applied for government education subsidies, people(students and parents alike) would still be using education loans for the wrong reasons.

The (wealthy and/or misguided) few ALWAYS spoil things for the many.
 

·
Señor Member
Joined
·
979 Posts
Extremely tired so apologies in advance if I misunderstood anything in your post, but Id like to share something.

Im a recent Uni graduate. When I was choosing schools, one of my criteria was going to a local/close school so I wouldnt have to pay for residence.

The 1.5-2 hour commute with bus & subway sucked, and to this day I somewhat regret not getting the "full" university experience, but the fact of the matter was, my family wasnt in good enough of a financial position to justify the added cost of residence (pretty much doubles your school costs). If it wasnt for that decision to go local, Id be up to my neck in debt and Id probably be driving around in a hoopty right now.

But because I worked throughout all 4 years and saved money by commuting, I had enough saved to pay off my debt and put some money down on my GC.

Long story short, if you have the option to, commute to a close-by school so that you dont have to pay for dorms etc. Should make things ALOT more affordable, and you get to keep your GC.

EDIT: and I dont know what you mean by dependent independent but you may wanna become a full dependent lol, might help with the loans

I dont know if your ciscumstances allow you to do something like what I mentioned but if there is, look into it.
 

·
Registered
Joined
·
165 Posts
I did as SinSina did, however I got my car when I was in High school but my parents were the owners of my car while I went to school.

I basically lived at home, drove to school each day and worked when I had spare time.

For my situation, the cost of tuition and books was nothing in comparison to the cost of the dorms and I was able to save a lot of money.
 

·
Joe-Shmoe
Joined
·
2,276 Posts
"Sell" the car to a person close-by that you trust, insure both & profit?
 

·
Registered
Joined
·
196 Posts
I don't think "selling" the car will do anything at this point to get OSAP back. They already know you own the car, so if you sell it the expectation would be that you use the money for expenses.

I would think the only option is to get a traditional bank loan.
 

·
Registered
Joined
·
762 Posts
Get a job where you work more than one day a week.... or work full time for a while and save your cash for school, I for one wish they would do away with federal student loans.
 

·
Explosively Canadian
Joined
·
290 Posts
Discussion Starter · #16 ·
I work full time, five days/8 hours per day/40 hours per week, and would be unable to afford tuition and rent if I were to go to school full time and work on the weekend.

Full time labour doesn't equal a ticket to ride. If you've been born with a silver spoon in your mouth as someone else mentioned, or if you were lucky enough to find a high-paying easy job in the current labour market, then this doesn't apply to you. For the rest of us...

I'm barely in the bracket of affording a GC as it is. It was already slightly over my budget but I found a way to make it work... and if I stick at home, it will. I'd just rather not have to stick at home for another two to three years, since I feel a curious need to leave my home before age 30. ;-)

Saving for tuition is easy. I can already afford my first year's tuition. It's the cost of living that'll kill me.
 

·
Registered
Joined
·
146 Posts
well if its the living thing your worried about.....this could be worth a shot???

if your going to a city, you could start applying to be a live in supervisor at an apartment building!. its generally free living at least where i am! but your on call 24/7.???

a thought ive looked at in the past! not for everyone but if you can make it work, and get into a home based data type work??.....its great cause your always available. so living free, and making some money on the side!
 

·
Registered
Joined
·
762 Posts
Actually your idea isnt that out to lunch. There are alot of solutions like this.

If you can afford the tuition, why would you ever leave your parents place untill your done school?? That, my friend, is the dumbest thing you could do.

And you need to think about how your parents will feel when you tell them that you would rather scratch and starve than let them help you through this.
 

·
Explosively Canadian
Joined
·
290 Posts
Discussion Starter · #20 ·
That's one of the bigger cans of worms right there... my extended family is offering to help but I feel uncomfortable taking gratuity that I know will never be repaid. It's what family is for, or at least that's what they tell me...
 
1 - 20 of 21 Posts
Top