Help! Money! In a pickle!!! - page 3

hey everyone! here is the scoop. i got into a bsn rn program at a private university. i already have a bs so i thought getting the bsn would be a good route for me.. i already have a lot of the... Read More

  1. by   futurecnm
    Why would you have to take all the pre-reqs over??? I went to school over 10 yrs ago and mine worked for the community college. Sometimes they want you to take the sciences within 5 years but you can petition that. Do you have all the sciences done? (biology, A&P, microbiology...)? If not, it would be cheaper to do them at the CC anyway. And I would think you will have to work to make this happen. Sounds like a huge sacrifice that you will be paying for years down the road. but I guess you gotta do what you feel is right... good luck.
  2. by   RazorbackRN
    Quote from subee
    How could it cost 5 TIMES the amount of the loan? That's double a mortgage payment at around 6% so something is way off in your figures. If you borrow 20,000 @5%, it would cost you 21,000. School is expensive, but unless you're in your fifties, you'll make it back (unless you're a banker).

    You are correct in the aspect that it shouldn't cost as much as the OP states, however, your calculations are incorrect.

    Interest rates aren't as cut and dry as just taking 5% of the loan amount and tacking it on the end.

    For example:
    If you have a 20K loan @ 5% interest with a 10 year term, you will end up paying appx $25,500 for that loan, if you make the monthly min. payment.
    The financing time and the monthly pymt amount is taken into consideration.

    To the OP:
    Federal Stafford Loans (there aren't income limits for unsubsidized, so you should be eligible) are currently at an fixed interest rate of 6.8%.

    If you were to borrow $ 60K @ 6.8% with a 10yr term, your pay back would end up being appx $82K, if you only make the minimum pymt.

    However, the great thing about Stafford loans is that you can pay the interest while your in school. It only ends up being about $12-15 monthly and it will save you thousands in the end.

    Also, if you do meet the income criteria for a Subsidized Stafford, the gov't pays the interest while you are in school, meaning that is less debt that you've accumulated.

    Visit FAFSA on the Web - U.S. Department of Education for more information regarding federal student loans.
  3. by   RazorbackRN
    "I did fill out the FAFSA. In 2005, I made good money so I do not qualifiy for any govt. assistance. I tried explaining to the financial aid office that I have worked part time for the last 6 months making a bit over minimum wage and no longer make that kind of money. I told the fin. aid dept. that if I do not get assistance, I simply cannot go. I filled the FAFSA out indepently but since I am married, the fin. aid dept. said I do not qualify for any assistance. I wanted to update the FAFSA and resubmit it, but she said because I am married, I still do not qualify. "


    This information is incorrect. Anyone is eligible for Federal financial aid, however, as I previously stated, it may be unsubsidized.
  4. by   BSNtobe2009
    Quote from moongirl
    okay, I used to work in banking,and once upon a time was a full charge bookkeeper

    a 21,000 loan at 15 percent interest would cost you about $260 a month in interest to start. With with a payment of $423 that would put $163 towards principal. at the payments you are describing, upon pay back you would have given over $44,000 in principal alone, which is not correct- you are borrowing $21,000.00

    running a loan amortization chart, a normal payment plan for 20 years for 15 percent interest would have you making a payment of $276.52. total interest paid is $45,366.19, for a total payback of principal and interest of $66,000.00.

    If you up your payment to the 423.00, you should have this 21,000 loan (at 15 percent interest) paid off in 6 years, with a total of interest paid of about $11,000.00. total pay back of $33,000.00

    Now, to get smart, take this $21,000 loan at get it for 9 percent. In that same 6 years you have paid it off and only spent $6300.00 in interest.

    Whatever you decide, you need to have someone look at your papers/figures because they are WAY WAY off

    Hope this helps- and yes I should have stayed in accounting, way less stressful than student nursing!
    But see, that all depends if she is getting a fixed rate or not or if a teaser rate is incorporated. I think she is getting an adjustable rate mortgage, along with HIGH HIGH HIGH origination fees that they are financing into the loan.

    I would bet you a dollar there is a recapture built into that loan, and without knowing what the APR on the TIL is and comparing that to the Note Rate there is no way to know any of that.

    You can never figure out what the interest rate is just by looking at the amount paid each month and for how long unless it's a simple interest fixed rate, which I can guarantee, she does NOT have.
  5. by   augigi
    Can you do an online RN-BSN program which does not require a commute and accepts your credits?
  6. by   Doog
    This loan situation seems like a scam. And just for a reference I will be completeing my second Associate Degree this one in Nursing with a total of 15,000 dollars in loans for both degrees. No cash out of pocket! You may want to reconsider your situation.
  7. by   NICU_Nurse
    Hmm. Okay, let's see. Let's clarify. (I was tired last night!)

    According to the Sallie Mae information page regarding Stafford Loans:

    -By submitting a FAFSA you may be eligible for Stafford Loans. Combining both subsidized (gov't pays interest while you're in school) and unsubsidized (you either pay interest while you're in school or it compounds and becomes part of your payment plan after graduation) loans together, the total maximum you are allowed to take out is:

    Freshman: $6625
    Sophomore: $7500
    Junior: $10500
    Senior: $10500


    All of these at a fixed 6.5% interest rate, with no credit check required.

    These are loans, not grants, which means your income is NOT a consideration.

    This means that despite your previous high salary, and despite your husband's income, you are still eligible for these loans at this interest rate.

    I have no idea how this will affect your initial payments, considering school begins so soon and your fees are due, but this information will be pertinent once your FAFSA has been submitted and processed by the gov't.

    You said you'd already submitted a FAFSA and the counselor said you weren't eligible for aid- you need to clarify whether or not she meant grants or free monies from the gov't. She's right- I didn't qualify for free aid either. No grants; no Perkins loans, etc. because my income was too high. However, these Stafford Loans are made for people just like us- people who are not considered "needy" by the gov't but still require money to pay for school.

    Assuming you will attend school for 3 years in the traditional BSN program, you stated you will need about $60,000 in financial aid.

    *You need to secure as much "easy" money as possible, i.e., Stafford Loans. You should be eligible for 3 years worth of Stafford Loans- revising what I said in a previous post, if you took out the max for your "Freshman", "Sophomore", and "Junior" year classifications, that would give you $24625, minus fees, at a 6.5% interest rate. There are fees that the school takes, which I have NEVER found fair, but alas, assume -10% goes to the school. That puts you at around $22000 in Stafford Loan money over the 3 years you will be in school. That's 1/3 of your expenses.

    *You need to investigate the Care for Virginia plan. This is through Sallie Mae. As I understand it, you apply now. When your loans are approved through Sallie Mae, you pursue your degree. Upon graduation, you begin repayment with Sallie Mae. For the first 36 months as an RN, if you pay all payments on time, at the 37th month, you will receive a 10% loan credit (they pay off 10% of your loan) simply for being a resident of Va. and paying your payments in a timely fashion. This is like 10% free money. Check this out.

    *The rest of the money you need may indeed have to come from private loans if you cannot get scholarship monies. However, do what you have to do to get in and get started, then re-evaluate. Do not take a 15% interest rate if you don't have to! If you must, find another lender, get a co-signer (your parents, your in-laws, someone with excellent or very good credit) and qualify for a lower interest rate on the remaining $30K or so.

    *Once you've paid for school and graduated, you should investigate those repayment programs I linked to, both federally and through the state of VA. Find out which facilities count (more than you'd think! This time the healthcare shortage works in your favor!) and sign up for that. Let's say they pay up to 80% of your financial aid. This could mean that of that $60000 you took out over the course of 3 years, they could potentially pay up to $45000 of this back JUST BECAUSE YOU WORK IN A "NEEDY FACILITY", leaving you with only $15000 to pay back, plus interest.

    Does that make sense?
  8. by   NICU_Nurse
    Also! Just found this:

    School of Health Professions - Nursing
    Accelerated BSN for Second-Degree Students
    Takes 4-5 semesters (5 if you need to complete pre-req's you don't have)
    1.5 years vs. 3 years

    Baccalaureate Degree
    Nursing Accelerated Program- BSN
    15 months vs. 3 years

    VCU School of Nursing
    Accelerated BS Program
    Just over 1.5 years (2 summers, 2 falls, 1 spring session)

    All of these use your previous bachelor's as the foundation, requiring only minimal (if any) pre-req's, such as sociology, psych, micro, a&P, etc. They usually allow you to combine the nursing classes with the needed pre-req's to finish in a shorter time.

    Do any of these look like possibilities?
  9. by   moongirl
    Quote from BSNtobe2009
    But see, that all depends if she is getting a fixed rate or not or if a teaser rate is incorporated. I think she is getting an adjustable rate mortgage, along with HIGH HIGH HIGH origination fees that they are financing into the loan.

    I would bet you a dollar there is a recapture built into that loan, and without knowing what the APR on the TIL is and comparing that to the Note Rate there is no way to know any of that.

    You can never figure out what the interest rate is just by looking at the amount paid each month and for how long unless it's a simple interest fixed rate, which I can guarantee, she does NOT have.
    I was going off of the fact that she said it was a 21,000.00 loan at 15 percent interest
  10. by   Epona
    you are awesome!!

    ok.. i followed up too after reading all the great posts here. you guys are the best and i credit alot of my nursing advice to you!!!


    i called the school to see what else i could qualify for. i discussed the high sallie mae loan. i got another girl in the actual college loan dept. (who came recommendded from the head of the fin. aid dept.). she told me that yes.. i could qualify for additional stafford loans as i used to make $40,000 and now only make around $20,000. she said this was a drastic income drop and changes my situation. she told me to contact the head of the fin. aid dept. and ask if they could adjust my efc number from fafsha. i have contacted the head of the dept., and i am waiting to hear back. i may be able to get an additional $5 grand in the form of stafford loans.

    also.. she gave me other lending institutions to call to see what their apr rate is. most of the others i called have rates that go to 10 percent. better then what i am paying, but not a lot. they said their private loans are credit based too... so i could end up in the same pickle and the rates go up and down i was told.

    i finally called sallie mae back and got a rep. who seemed to know what he was talking about. he explained to me that the $100,000 amount was based on a four year program and not paying anything on it for like 5 years. i said 'well i hope to be out in 2 years.' and he said 'well then that basically cuts the repayment in half.' he said this note was based on one being in school for four years and not paying a dime for years. i was like 'oh... ok.. that made sense then.' so the $100,000 is actually $50,000 and if i pay some of the interest on it while in school ( i have decided to work a little part time job)... that will help cut the payments too. the $100,000 was based on four years. geezzz.. i will not be in school that long. the paperwork did not explain any of this. this rep. seemed to know what he was talking about and it made sense.

    so... i went to the school today and paid a deposit on my nursing seat. yeah!! so the sallie mae is coming, but i have learned (thanks to you and the knowledgeable gal at the school finally) more about loans from stafford to private... apr rates and so forth. i am applying for a number of scholarships once i am "in the door." this loan will at least get me in the nursing door and then i will have time to check around once i am in.

    yeah! thanks again for all your help!!!! you are the best!!!!

  11. by   NICU_Nurse
    Yay! Good luck!
  12. by   Kayartea
    Quote from epona
    you are awesome!!

    ok.. i followed up too after reading all the great posts here. you guys are the best and i credit alot of my nursing advice to you!!!


    i called the school to see what else i could qualify for. i discussed the high sallie mae loan. i got another girl in the actual college loan dept. (who came recommendded from the head of the fin. aid dept.). she told me that yes.. i could qualify for additional stafford loans as i used to make $40,000 and now only make around $20,000. she said this was a drastic income drop and changes my situation. she told me to contact the head of the fin. aid dept. and ask if they could adjust my efc number from fafsha. i have contacted the head of the dept., and i am waiting to hear back. i may be able to get an additional $5 grand in the form of stafford loans.

    also.. she gave me other lending institutions to call to see what their apr rate is. most of the others i called have rates that go to 10 percent. better then what i am paying, but not a lot. they said their private loans are credit based too... so i could end up in the same pickle and the rates go up and down i was told.

    i finally called sallie mae back and got a rep. who seemed to know what he was talking about. he explained to me that the $100,000 amount was based on a four year program and not paying anything on it for like 5 years. i said 'well i hope to be out in 2 years.' and he said 'well then that basically cuts the repayment in half.' he said this note was based on one being in school for four years and not paying a dime for years. i was like 'oh... ok.. that made sense then.' so the $100,000 is actually $50,000 and if i pay some of the interest on it while in school ( i have decided to work a little part time job)... that will help cut the payments too. the $100,000 was based on four years. geezzz.. i will not be in school that long. the paperwork did not explain any of this. this rep. seemed to know what he was talking about and it made sense.

    so... i went to the school today and paid a deposit on my nursing seat. yeah!! so the sallie mae is coming, but i have learned (thanks to you and the knowledgeable gal at the school finally) more about loans from stafford to private... apr rates and so forth. i am applying for a number of scholarships once i am "in the door." this loan will at least get me in the nursing door and then i will have time to check around once i am in.

    yeah! thanks again for all your help!!!! you are the best!!!!

    one other place to check is your state board of nursing. due to the nursing shortage they now have federal money to use as nursing school scholarships. they are available for masters programs, too. but they only have so much, so apply early.
  13. by   Jo Dirt
    Quote from Epona
    Oh... and my interest rate on the loan is almost 15 percent.
    Please, stay away from that scene.

    There are much better ways to go about this. Even as around the bush as it sounds (and I don't expect you to do this), the route I went was fairly cheap and I got through it with absolutely no debt. I went through a year long LPN program (I don't care what anyone will tell you, becoming an LPN is not a waste of time. 10 to 1 people who tell ou this have never been LPNs) and when I was ready I took a job as a private duty nurse on the 7pm-7am shift, which allowed me more than enough study time. I enrolled in a distance nursing program and with my job making $18-$21.00 an hour I was able to pay my way through RN school out of pocket. No, it wasn't cheap (about $6000 total) but it didn't break the bank, either. And no, my degree isn't a "pedigree" but it has not affected my ability to get as good a job as the next RN. In fact, other than the application, my employer never asked about how I got my license.
    This is just an example. There are other ways, I know.

    You are asking for a life sentence with this deal. It isn't worth it.

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