Debt! I'm making the right choice, right?

elleNY · May 15, 2010

I think the OP does have some legitimate worries. I too am in NY and the SUNYs are crazy crazy crazy competitive. For those of us in NYC, that leaves us with NYU & Columbia...both amazing, top ranked schools but both over 70gs. I have no debt from my prior degree, but I am concerned about taking on 70g+ debt for a BSN. Cost of living must be factored in, which brings that 70 closer to 100. Most financial "people" advise not to take out more loans then you would make in a year. If you take out 80gs in loans, that's 110g with 30g interest over a 10 year time frame. For those who say "you'll have forever to pay it off", the longer you stretch out the payments, the higher your total loan becomes..FOR EXAMPLE, 110 over a 10 year term to borrow 80gs..If you change the term to 30 years, you are paying ~$187,758 to borrow 80gs for nursing school. So extending the term is very bad advice, in my opinion.

But lets just say you (and by you, I mean ME lol) take out the 80gs with a loan duration of 10 years.

Hypothetical: Your first year nursing in NYC you make 75gs.

This becomes around $52,500 after taxes.

Student loan is 950 a month (80g, 10 years, 6.8%), now you have: $52,500 - $11,400(student loans) = Around $41,000

For a crappy, old, studio you pay 1900/mo, or $22,800 a year.: Now after taxes/student loan/rent you have ~ 19,000. If you are fiscally responsible, you invest 5-10g per year of this in retirement. Now you have between 9-14g a year, or around 750-1160/month for: all your bills (gas/cable/phone)/all of your food/and anything extra fun money/incidentals/travel.. I will tell you that everything down to TP is much more expensive in NY. These are my calculations for a single person with no children. There are many variables that could make this picture better (employed husband) or worse (single parent). According to finaid.org, taking out this loan with this projected income is considered to be in "economic hardship". These numbers a rough estimates.

So, I think the OP has some very very real concerns. Yes, loan repayment and all that jazz is an option, but many people apply and only a few are chosen. I don't mean to be a debby downer but I guess I'm trying to figure this out too :-(

If I plan on doing this loan, I will most certainly pick up per diem work (if work is to be found) to pay off the loans..and continue on to an advanced practice profession which pays more. But what if I don't find a job like many new grads and my interest rates go up as I defer? Income-based repayment is only for federal loans, which max out way below the cost of private school. I am not trying to be negative, I am just sharing my own concerns and financial analysis of the matter at hand (I did similar calculations in another post). I am looking in to other options, but I also will have family help. One thing I do know is that I might want to/have to leave NY due to the high cost of living. OP- where there is a will there is a way and I think you are being very responsible considering the financial burden! I wish us both luck!

Elle

WondeR.N. · May 15, 2010

Okey dokey, I've said it before, and I'll say it again. Here's what you do. Quit figuring out how badly you're going to be mortgaging your future. First, if you want an outstanding nursing education for a fraction of the cost of what you are looking at, go to Westchester Community College. It is highly competitive to get into, but if you have the grades to get into Columbia or NYU, then you certainly have the ability to get a high enough TEAS score to get into WCC. Don't let the "Community College" name deter you; it is an excellent program, and their graduates ALWAYS breeze through the NCLEX-RN. Don't believe me. Look it up on the Office of the Professions website. WCC is consistently ranked very highly in the state among ALL nursing programs, including the fancy, schmancy Ivy League (i.e. Columbia and NYU).

For instance, NCLEX-RN pass rate from WCC in 2009 was 97.3%; from Columbia University it was 90.4%; from NYU it was 86.1%; from Pace University's NYC campus it was 93.2%; from Pace's Pleasantville campus it was 78.3%.

Once you've graduated from WCC (or another one of the outstanding Community College programs in the area), you can work and finish your Bachelor's for a perfectly reasonable price through SUNY or online from another excellent college anywhere in the country.

Yes, it's very difficult right now for ADNs to get hired, but at least you'll have a good, fighting chance to be working as an RN and have your BSN at least partially paid for by your employer! If you're in a 4 year program, you wouldn't get licensed for another 2 years anyway! Think about it. It's common sense. Don't make the mistake of thinking that a nursing manager is going to fawn over a Columbia grad over you if you take this route and get a Bachelor's from SUNY; chances are your nursing manager will have done the EXACT same thing. Nobody cares where your nursing degree is from, and if you can't pass the NCLEX after you graduate, you're not going to get licensed. Paying more for a degree doesn't mean you're getting a better education.

CuriousMe · May 15, 2010

Definitely look into all of your available options. While it is true that paying more doesn't necessarily mean you're getting a better education, I don't necessarily agree that all educations are equal....or that that the NCLEX pass rate for a program is a metric of the quality of a program.

Harvard Med School Grads and Joe Blow Caribbean Med School Grads both take the same USMLE....if both school's have the same pass rate, it doesn't mean that both student's received the "same" education.

carolinapooh, BSN, RN · May 15, 2010

Well, I'm not sure what help I'll be, but I just wanted if nothing else to extend a HUG out there. Debt can be insanely overwhelming and crushing. I don't know what your personal situation is, but it sounds to me that yes, those schools are crazy expensive. BUT if you don't need to stay in NY, then get out. If your prereqs are done, move somewhere for a year or two and even with out of state tuition, it would be cheaper. California has some of the cheapest tuition in the country (so I hear) but even that is going up lately. I would seriously consider moving somewhere for a couple years. Florida is crazy cheap to live in, too, and I think you only need to live there 6 months before getting in state tuition (I'd double check that tho).
Good luck. Its your life, your dream, and debt sucks. Consider throwing in a couple years in some weird place so you can get your degree.

Actually, out of state tuition in NC is cheaper than in-state tuition in a lot of places - and you'd be hard pressed to beat a school with the reputation of the University of North Carolina at Chapel Hill. Most places you need to establish domicile for one year (NC is one of them) - but the tuition is reasonable. And the cost of living in NC is very low, while the quality is very high.

I'm from NC and went to school with MANY out of state kids - many of them from up north - when I was at East Carolina for, ironically, an elementary education degree back in the early '90s, and my sister, who went to Carolina, went to school with TONS of out of staters. NC is the only state that subsidizes the tuition for ALL students, not just the in-staters.

I'd check them out if I were you.

reganette · May 15, 2010

All this information is so helpful. I've been spending so much time researching so many of these different suggestions. I appreciate every single answer here.

I'll keep you all updated once I know what I'm going to do.

elleNY · May 15, 2010

Okey dokey, I've said it before, and I'll say it again. Here's what you do. Quit figuring out how badly you're going to be mortgaging your future. First, if you want an outstanding nursing education for a fraction of the cost of what you are looking at, go to Westchester Community College. It is highly competitive to get into, but if you have the grades to get into Columbia or NYU, then you certainly have the ability to get a high enough TEAS score to get into WCC. Don't let the "Community College" name deter you; it is an excellent program, and their graduates ALWAYS breeze through the NCLEX-RN. Don't believe me. Look it up on the Office of the Professions website. WCC is consistently ranked very highly in the state among ALL nursing programs, including the fancy, schmancy Ivy League (i.e. Columbia and NYU).
For instance, NCLEX-RN pass rate from WCC in 2009 was 97.3%; from Columbia University it was 90.4%; from NYU it was 86.1%; from Pace University's NYC campus it was 93.2%; from Pace's Pleasantville campus it was 78.3%.
Once you've graduated from WCC (or another one of the outstanding Community College programs in the area), you can work and finish your Bachelor's for a perfectly reasonable price through SUNY or online from another excellent college anywhere in the country.
Yes, it's very difficult right now for ADNs to get hired, but at least you'll have a good, fighting chance to be working as an RN and have your BSN at least partially paid for by your employer! If you're in a 4 year program, you wouldn't get licensed for another 2 years anyway! Think about it. It's common sense. Don't make the mistake of thinking that a nursing manager is going to fawn over a Columbia grad over you if you take this route and get a Bachelor's from SUNY; chances are your nursing manager will have done the EXACT same thing. Nobody cares where your nursing degree is from, and if you can't pass the NCLEX after you graduate, you're not going to get licensed. Paying more for a degree doesn't mean you're getting a better education.

Thanks for the great advice. Being from Westchester, I know that WCC is one of the best CCs in the COUNTRY! That being said, there is no way I will get my ADN. No hospitals in Manhattan hire ADNs anymore, and VERY FEW do outside of Manhattan. No amount of savings would be worth going to school for two more years and not finding a job or having to work in LTC. No offense, but I do not, under any circumstances, want to work in LTC.

If you go on the thread in the nursing news section about Penn ADN vs. BSN, you'll see the discussion of market trends. Hospitals (and even government/public health positions) in NY are practically mandating BSN through the business practice of preferential hiring. In two years, I'm sure it will be even worse. Another thing to consider is that it would take longer to get an ADN/ASN than a BSN for those with prior degrees. The opportunity cost of one year working as a nurse lost (60-80g), should be factored in! Again, your advice is good and may be an option for some but at least for me, it is not!

Elle

ruthybaby720 · May 17, 2010

Yes, where there's a will there IS a way!!

when i started nursing school, we were accepted into the program even tho we had done no prereqs, it was all included in the 2 yr.ie for me it was 3 and a half yrs, parttime. I had no idea where i was gonna get the money when i started, i just saved a little for book, but i paid per semester, then after awhile i was awarded a state nursing scholarship! I worked fulltime the whole time and paid stuff as i went along. It will work out whatever you decide to do, just do it!! good luck to you! and don't give up your dreams!!ruth/RN kansas(went to school in MD)

GracieLou47 · May 17, 2010

I really understand your problem. I am stuck with huge debts because I went into a different field and left nursing, but guess what I am back in nursing and doing OK but still in debt. Look for grant and grad program books at the library. There are companies, states, ethnic organizations, Children of vet grants and hospitals that have grants that you don't pay back but ones you pay back by promising to work at their hospital for a certain amount of time...its a set position when you graduate. Get the book Lesko's free government grants there might be something there. Hope you find what you want and hey you can get credit for classes you take that cross over especially with LDR's. Good Luck