I'm an incoming student from the US this next semester, and I was wondering what other students from the US have done to get private loans to pay tuition.

I was told I have to go to a bank in the US if i want to get a loan, which I plan to do. However I was just wondering if any other students have any tips or advice or recommendations when it comes to this. If someone out there knows about the definite way to go on this, it would be great to know.

Thanks.

May I assume you do not qualify for any Federal US Loans? Did you fill out your FAFSA application for this academic year? Most everyone who does gets at least a 6.8% loan. Or are you saying that you've exhausted all of the above and need even more?

Regardless, all international students should be aware that whenever the money of one country gets changed into the money of another, there is a middleman who takes a slice of it.

These folks are known as Foreign Currency Dealers (also "Forex" and "f/x"), and their fees are hidden from your view. If you pay your Mac tuition today, they will gladly accept a USD (U.S. Dollar) check, and they will credit you CAD$1.02 (CAD = Canadian Dollars) for each US dollar you pay. That sounds good at first, until you check the "interbank" rate of CAD$1.066 (as I write). Now you are not a bank, so you don't qualify for the interbank rate. But you can call as many Forex dealers as you want until you find a rate you like. Guaranteed you can do better than the McMaster rate. I use www.oanda.com and am happy with their rates and service.

I know you didn't ask about Forex, but this little hitch in getting USD loans could double your effective interest rate in the 1st year. Seriously! Example: on my US$12,500 loan, this hidden fee amounts to about CAD$500. The 1st year interest was only going to be USD$476.

I am just learing today that Mac is forcing me to take their offered rate. I am hopping mad, , over it and plan to fight it however I can.

-RenderLad

Originally Posted by RenderLad

May I assume you do not qualify for any Federal US Loans? Did you fill out your FAFSA application for this academic year? Most everyone who does gets at least a 6.8% loan. Or are you saying that you've exhausted all of the above and need even more?

Regardless, all international students should be aware that whenever the money of one country gets changed into the money of another, there is a middleman who takes a slice of it.

These folks are known as Foreign Currency Dealers (also "Forex" and "f/x"), and their fees are hidden from your view. If you pay your Mac tuition today, they will gladly accept a USD (U.S. Dollar) check, and they will credit you CAD$1.02 (CAD = Canadian Dollars) for each US dollar you pay. That sounds good at first, until you check the "interbank" rate of CAD$1.066 (as I write). Now you are not a bank, so you don't qualify for the interbank rate. But you can call as many Forex dealers as you want until you find a rate you like. Guaranteed you can do better than the McMaster rate. I use www.oanda.com and am happy with their rates and service.

I know you didn't ask about Forex, but this little hitch in getting USD loans could double your effective interest rate in the 1st year. Seriously! Example: on my US$12,500 loan, this hidden fee amounts to about CAD$500. The 1st year interest was only going to be USD$476.

I am just learing today that Mac is forcing me to take their offered rate. I am hopping mad, , over it and plan to fight it however I can.

-RenderLad

I know it's too late now, but can't you open a Canadian Bank Account and use Forex to change some USD into CAD, then pay McMaster from that bank account? Not sure if that's possible.

Yes I can, and it still isn't too late to do that. But it won't matter because get this: the US Govt (who I am borrowing from), will only send my loan proceeds directly to McMaster, and Mac will only give me the Forex rate they have posted on the day I sign my promissary note. If my tuition bill is already paid when they get the money from the USA, they will send me a refund of the overage, but only in Canadian dollars, already converted at their lousy Forex rate. Screwed either way I think.

Right now my plan is to request that Mac give me the money back in US$. That way I can get it over here any way I choose. We Americans are big on "A person's right to choose." The concept goes way beyond just family planning.

-RL

Originally Posted by RenderLad

Yes I can, and it still isn't too late to do that. But it won't matter because get this: the US Govt (who I am borrowing from), will only send my loan proceeds directly to McMaster, and Mac will only give me the Forex rate they have posted on the day I sign my promissary note. If my tuition bill is already paid when they get the money from the USA, they will send me a refund of the overage, but only in Canadian dollars, already converted at their lousy Forex rate. Screwed either way I think.

Right now my plan is to request that Mac give me the money back in US$. That way I can get it over here any way I choose. We Americans are big on "A person's right to choose." The concept goes way beyond just family planning.

-RL

Ah I see, guess that's the only thing you can try to do now...