I've just received notice that I've been accepted to Broward Community College's AS in Nursing Program.
This is my second career and with the federal loans I borrowed to pay for my bachelor's and master's coursework, I have exceed my school's loan limit of $14000.
My estimated tuition/fees is about $6000, which I may be able to get covered with a hospital scholarship. My primary concern is my living expenses (mortgage, car payment, HEALTH INSURANCE etc.), which will total about $43000 for the 22 months (20 months to complete the program and 2 months cushion).
I have some money in savings and since my background is in education, I plan to substitute teach and tutor to make a little extra money. However, I'll still be short.
I'm weighing my options between taking a Private Education Loan or a Home Equity Loan?!?!?
Sorry if I gave To Much Information, but I'm really struggling with this decision.
What do you think?
Oct 26, '07
Hello! Congratulations on your acceptance! :-)
I would probably do an education loan (i have used stafford, but my husband went through nelnet...i can't remember which bank that is, but it's nelnet.net).
I would choose education loan because you'll be able to defer your first payment until after you graduate, whereas with a HELOC, you'll have to pay that while you're in school. Plus, if you really want to keep your expenses low, you'd probably end up with a variable interest rate on your home equity loan--your monthly payments would be low, but who knows what kind of an interest rate you'll be paying 22 months from now.
My sister just graduated from BCC in August. Great program. Good luck with your decision in paying for school...I'm still paying for my grad school loans 10 years later, so I know what you're talkin' about!!
Last edit by np_wannabe on Oct 26, '07
Oct 26, '07
Are you really serious about borrowing $43000 just to complete an Associate Degree program to pay for all your expenses? If you have never heard of Dave Ramsey you need to tune into his talk radio show, visit his website or check out one his VERY helpful books from the library.
My advice is probably nothing you want to hear but for your financial future I will give it to you. You never borrow against your house for anything-NOTHING. If you cannot afford the payment while you are in school then you need to sell the house and rent. Don't let anyone sell you crap about writing the interest off. You are borrowing a whole lot of money just to avoid paying a fraction of taxes to the government. In reality you don't really save anything..you just live month to month and pray your roof doesn't blow off and Mr. Insurance tells you they ain't covering it or your heating/air unit goes out and you freeze to death in the winter. In an apartment something breaks, leaks or stops working THEY FIX IT. Private loans will cost you big time unless you borrow from a reputable bank or credit union in which you have a good relationship with--you know one you can stroll into and actually sit down and talk to a person not just an idiot in a box on the phone 3000 miles away. Interest rates are usually higher and can go up over the life of the loan.
Can you put off the program for one year while you work your butt off saving money? If going into nursing is this important to you can you sell your house and use the profit to help with expenses? A house is just brick and wood..a home is a feeling and that can be experienced anywhere--even an apartment. Are you trying to quit work all together? Is that really necessary? Like me, you have several degrees so you have what it takes to "make it" in college. If you owe a lot of money on your car just sell it..you may eat the difference but its better than owing $20000 on something that sinks in value. I drove a 17 year old Ford 100+miles round trip everyday to nursing school. Ugliest piece of crap but hey it was PAID FOR.
Anyway..I beg you not to jump off the deep end and go into immense debt. There are ways to do this and come out owing nothing or very little. DAVE RAMSEY. Our family is living like NO ONE ELSE(no credit cards and debt-free except house and a stupid school loan and we are working hard to pay off) so one day we can live LIKE NO ONE ELSE---DEBT FREE!!!!!
Last edit by pirap on Oct 26, '07