SOCSCI 2PF3 Lecture Notes - Lecture 7: Registered Education Savings Plan, Alternative Financial Service, Life Insurance
20 Feb 2017
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Using consumer loans: under present bankruptcy legislation, student loans are no longer dischargeable. Registered education savings plan (cid:523)resp(cid:524) : demonstrate financial need, make satisfactory progress in school, no defaults on other student loans. Traditional financial institutions: chartered banks, credit unions. Friends and relatives: payday loan companies. Compare loan features: finance charges and loan maturity, total cost of transaction. Socsci 2pf3: collateral requirements, other features (e. g. payment date, late fees) The principle portion of a demand loan is often repaid in full w/ a single payment on a given due date. May be taken out for many purposes (e. g. buy a car, paying for vacation) Loan repayment: a loan rollover may be needed if you"re unable to obtain the funds to pay the principal by the due date. Repaid in a series of equal payments. Each payment is part principal and part interest. Maturities range from 6 months to 7-10 years or longer.
