Help! Money! In a pickle!!! - page 4

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   Jo Dirt
    Quote from epona
    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.

    [/b]

    that is still an obscene amount of money. i don't want to be negative but with some patience you could still find "other" ways. remember the tortoise and the hare: the tortoise is ugly, he's slow, but he wins the race everytime. don't just pounce on this deal because you feel it's urgent you hurry up and get in.
    i'm assuming you don't have children (but if you do, this would be all the more reason to stay away from this bum deal), but what about work study? i know people who have gotten through school without much financial burden this way.
    i don't care what anyone says, $50k is not going to be easy or convenient to pay back. 50k for a school loan is stupid. i know people who have gone $20k+ in the hole for a degree then try to rationalize it as being a good investment because their "big" nurse's salary (ha ha) will pay it off in a few years.
    get real.
    Last edit by Jo Dirt on Nov 29, '06
  2. by   TAMCDIVA
    I'm not so sure about your numbers. I have 30,000 out and my payment is around 200.00-- YOu need to recheck or get a second opinion.
  3. by   BSNtobe2009
    Quote from moongirl
    I was going off of the fact that she said it was a 21,000.00 loan at 15 percent interest
    Oh, I knew that, but I was just trying to point out that when lenders are running scams, there are all kinds of ways for them to hide it, and the Federal Government does very little to protect the public.

    There is something called an APR (Average Percentage Rate) that is required to be on every loan, regardless of what kind of loan it is. Many loan officers will tell people, "Oh, that isn't the interest rate you pay" or "Oh, you don't need to worry about that."

    It's the most important figure in your entire stack of papers and so-called "lending professionals" have no idea of what it's really for, or how to explain it to the general public.

    It reflects the TRUE cost of financing, fees, origination, yield spread premium, junk fees. This is how everyone gets paid, and the vast majority of it is fully negotiable and it would blow your mind to know what the gov't will legally allow a lending institution to charge.

    When most people get quoted an interest rate, what the LO is quoting is either a teaser rate or the rate for the first year. The general public assumes that most interest rates are fixed, some are, some aren't, it just depends on what you were quoted.

    The details of how your loan works is explained in your NOTE. When I mean fully explained, I mean FULLY explained. There is a reason why that section is anywhere from a paragraph to a couple of pages long. It tells you how your payments will be calculated and on what interest rate it will be based on. Most people just look at the bold faced number in the first sentenced and soldier on. The LO is counting on the fact that you are doing that.

    Most Adjustable Interest Rates have a "cap" rate, and this is something that you need to pay very close attention to, it is the maximum rate that your loan CAN go to, in the event that the interest rates get out of control. 10 years is a long time folks, and NO ONE can predict what will happen. They can either skyrocket (1986) or crash (9/11/2001).

    There are all sorts of crazy ways the rate can adjust in between, and that is where your note is important.

    The law requires for a lender to quote you the worst case scenerio when estimating long term ammortization, sometimes, what is reflected is NOT what you will pay, but reflects what you MAY have to pay.
  4. by   HitmanCFYA
    You have a bachelors already in another field?

    You're wanting to take a student loan for living expenses?

    I don't think I could jeopardize the financial security of my family to change careers. Stay working in your current field while you lay the groundwork for a more prepared push which involves no loans.

    You cannot borrow your way to prosperity.
  5. by   Jo Dirt
    Quote from HitmanCFYA
    You have a bachelors already in another field?

    You're wanting to take a student loan for living expenses?

    I don't think I could jeopardize the financial security of my family to change careers. Stay working in your current field while you lay the groundwork for a more prepared push which involves no loans.

    You cannot borrow your way to prosperity.
    THANK YOU!!!!!
  6. by   sunnyjohn
    I think "stupid" is a bit harsh.

    I have a BSc in another field. I have 1/4 of a Masters. I worked my way through school to get my last certitifcate in Surgical tech.

    I have worked in financial services as a stockbroker and an advisor. I like to think I am good with money matters. Because of the hits I've taken due to terrible money mistakes in undergrad, I've learned to ABHOR debt.

    I have been working like mad for some time to save enough to pay for nursing school AND rent, food, utilities, car insurance, etc. I am EL CHEAPO SUPREME and even if I live on macaroni, ramen, bread, peanut butter and an occasional pack of ground beef, it will be tight.

    Yes, I will get scholarship money, but federal aid and the scholarship won't cover it all.

    I have worked out a plan to utilise my saving, my 5.05% HSBC saving account rate and a loan to pay for school.

    I have also worked out a payment plan to pay back all my loans in 24-30 months. I recognise I will have to continue to live frugally for a time after get my nursing degree if I intend to reach my goal.

    I don't the OP plan to borrow so much at such a high % rate is sound, but I do not think it is "stupid" to borrow to get an education. Yes, the best laid palan can go awry, but as long as you have one (and don't blow you first year of nursing paychecks on expensive things because you felt deprived during school) you CAN do it.

    I fully intend to use my RN degree and subsequent pay as seed money to pave my way to multi-millionaire status.
    Last edit by sunnyjohn on Nov 29, '06
  7. by   Jo Dirt
    Quote from sunnyjohn
    I think "stupid" is a bit harsh.


    I fully intend to use my RN degree and subsequent pay as seed money to pave my way to multi-millionaire status.
    Yea, it is a bit harsh but that is because I feel so passionate about avoiding debt. No, taking out school and other loans doesn't mean a person is stupid, but it is a stupid thing to do. And of course, we have all done stupid things, but no sense in willfully walking into it.

    There is no reason a person should have to take out 50k or even 20k to get an education. An education is important but there comes a point when it doesn't make sense to go into that kind of debt for the kind of job you will get with your education. Sure, med students and attorneys will rack up that kind of debt plus some but you are talking about high-paying professions. How will it feel when you have to say, "I took out a 50k loan for my BSN" when other people will be able to say, "The cost to get my BSN was less than $10,000." Even if they took out a 10k loan (which I don't suggest) that is tons less than 50k.
    I tend to preach here because I've done it and I feel certain anyone can do it. My family and I lived on hamburger helper and ramen noodles and scratched and saved and paid for school as I went along. Now I hate being a nurse and feel like I'm about to go around the bend but that's not the point...boy, what if I found out I hated nursing after tens of thousands of dollars in debt???
    If you are an unencumbered person you can get through school with no debt. Don't try to be intellectual and play with numbers to justify the debt. Most all your money issues are related to financial behavior, not intellect. There isn't any reason why you can't work and pay for school as you go along.
  8. by   sunnyjohn
    Motorcycle mama,

    I agree with you. I do think that there is too much debt in this country. I also think that people overestimate the amounts they need to live off.

    Everyone want to be comfortable, but do you really need DSL to be comfortable? Turn the thermostat down to 65 and wear a sweater/socks. Shop at the cheap grocers. Get only basic telephone service.

    I am a surgical tech and I intend to work PRN through nursing school, but there is NO way I could pay tuition, buy books, pay rent, eat and still make the grade to stay in my accelerated nursing program. I have no kids, have lived in my car (while in school) off dry ramen and cold noodles. It was rough.

    Remember everyone won't get in the local ADN/BSN prgram. I am not saying borrow up to your eyeballs. I am saying is try to save as much as you can, work a little and watch, watch watch what you borrow.
  9. by   BSNtobe2009
    Quote from motorcycle mama
    Yea, it is a bit harsh but that is because I feel so passionate about avoiding debt. No, taking out school and other loans doesn't mean a person is stupid, but it is a stupid thing to do. And of course, we have all done stupid things, but no sense in willfully walking into it.

    There is no reason a person should have to take out 50k or even 20k to get an education. An education is important but there comes a point when it doesn't make sense to go into that kind of debt for the kind of job you will get with your education. Sure, med students and attorneys will rack up that kind of debt plus some but you are talking about high-paying professions. How will it feel when you have to say, "I took out a 50k loan for my BSN" when other people will be able to say, "The cost to get my BSN was less than $10,000." Even if they took out a 10k loan (which I don't suggest) that is tons less than 50k.
    I tend to preach here because I've done it and I feel certain anyone can do it. My family and I lived on hamburger helper and ramen noodles and scratched and saved and paid for school as I went along. Now I hate being a nurse and feel like I'm about to go around the bend but that's not the point...boy, what if I found out I hated nursing after tens of thousands of dollars in debt???
    If you are an unencumbered person you can get through school with no debt. Don't try to be intellectual and play with numbers to justify the debt. Most all your money issues are related to financial behavior, not intellect. There isn't any reason why you can't work and pay for school as you go along.
    Just remember that the key word here is "family" may be the reason you have been able to not had to take out loans. Some of us are single, and don't have that other income to rely on that will allow one to work while the other one quits and the food magically appears on the table every day and the lights mysteriously stay on.

    When you are the only income earner, and the only school is full-time, you don't have a choice.

    PART-TIME NURSING SCHOOLS are about as rare as the white-elephant. That's sad, but it's the truth. If someone has to take out a large loan in order to be an RN I say so be it....work to find your cheapest route (get a roommate is a MUST! Get rid of your car payment! Set yourself up!), but not everyone can move, because that takes money too!

    Just remember not everyone has the same circumstances, and if you are a single parent with a non-school age child you have to PAY for someone to watch that child while you are at school AND at work.
    Last edit by BSNtobe2009 on Nov 29, '06
  10. by   Jo Dirt
    Quote from BSNtobe2009
    Just remember that the key word here is "family" may be the reason you have been able to not had to take out loans. Some of us are single, and don't have that other income to rely on that will allow one to work while the other one quits and the food magically appears on the table every day and the lights mysteriously stay on.

    When you are the only income earner, and the only school is full-time, you don't have a choice.

    PART-TIME NURSING SCHOOLS are about as rare as the white-elephant. That's sad, but it's the truth. If someone has to take out a large loan in order to be an RN I say so be it....work to find your cheapest route (get a roommate is a MUST! Get rid of your car payment! Set yourself up!), but not everyone can move, because that takes money too!

    Just remember not everyone has the same circumstances, and if you are a single parent with a non-school age child you have to PAY for someone to watch that child while you are at school AND at work.
    Sunny, I have basic dial up and the most basic Dishnetwork (FamilyPack) satellite service there is, and I also have a Net10 pay as you go phone for emergencies/business for $30 a month and me and the old man are going to take out test for our ham radio license December 9 so we can talk for free... And no, Sunny, I still insist you can get through school with no debt.

    Anyway, BSNtobe, you won't believe me when I tell you this but I'm going to tell you, anyway...I know my circumstances may seem privledged but I promise, they were hardly. My husband is disabled (legally blind) and he drew a little over $600 monthly with SSI, which he lost as soon as I got a job. So, I was living on the dole while I went to LPN school: got a pell grant, I forget what it was called but got some kind of program where you get free child care, I got food stamps. To tell the truth all but two of the 11 who graduated from my LPN class were living on the dole and had children. Some of them had several children with no husband. Me and the old man didn't ever live in the projects but the four of us did live (and God as my witness this is true) in a 12x36 shack with no indoor plumbing (except a kitchen sink) and stinky well water. We took our showers outside with a garden hose hooked to the hot water heater! When you live like that there is a desperation to do well in your studies so hopefully you don't have to stay living like that! And I wasn't in school part-time.
    Eventually, we were able to move up in house (we actually own 40 acres and a brick house-even though it's a dump- with a trailer set up on the property free and clear, now).

    It seems to be natural for people to assume that others who own property, have a certain degree, etc. have these things because their lives are easier than other people. This just isn't the case, more often, they lived through a lot of sacrifice. And I still do. I can't afford things like dental care. My teeth are rotting out of my head and I'll probably be in partial dentures by the time I'm 35.
    I could take out a loan on my home equity line of credit, but I'll risk being toothless first. I'll ride a bicycle before I take out a car loan again (believe me, I've only done this one time for a used car and it was the LAST!)I don't wear pretty clothes. My scrubs are old and faded. Luckily, my bosses say they don't care if I show up to work naked, as long as I'm there...
    So, my life is anything but glamorous. And I've learned something else about lifestyle and debt...most people who live within their means don't "appear" to be well off for it. They live in plain, modest houses, wear off the sales rack clothes, drive old beaters, don't eat out much...the difference (in many cases) between them and the guy in the flashy sports car is that they are living within their means!
    But I deserve to have nice things and I've never had nice things before so that is why I treated myself and ran up this debt...I deserve to have this degree and it's expensive but I want it...
    Waa. Lots of people never have anything. Stop already. I'm telling you, it doesn't make good sense to go 50k in debt for a degree. I'm pretty laid back about most everything but this is a subject where I get wild and start pacing around and come as close as I ever have to being a preacher.
    Please don't do it.
  11. by   Epona
    Hi everyone. Epona here. This has been a good thread and I have learned a lot here... like I always do. I LOVE this messageboard.

    Ok.. just to touch on a few things... WHY I am doing things this way.

    I have wanted to go to RN school for a while. Been planning this for many months. I was accepted to this BSN program back in the Fall. I DEFERRED until this Spring so I COULD GET MY FIN. AID together. I knew it was going to take some time. I had had other friends who went to this particular school for other majors... History, Pharm., etc. They were minorities (just being honest here) and got ALMOST ALL of their expenses paid for by the school. Ok.. so I guess I was dumb, but I thought.. Ok.. me being a minority I will get most of my school paid for too. The school was not far away, had a BSN program (I already have a BS) and I figured I would get some fin. assistance. A good combination all around. Nope. I did not know I would receive nothing until after I spoke to the fin. aid dept. once I was in. So once I was in again (which took several months to find out)... I proceeded to check out fin. aid in detail at the school. The fin. aid people would not talk to me about fin. aid UNTIL I was accepted again. I tried discussing fin. aid options with them months before and they were not receptive. I was accepted around the beg. of Nov. and $7,300 was due by Dec. 1. Well I called the school, went up to the school, got really no help and had to track down the DIRECTOR of the fin. aid dept. I was told there was no assistance for me except maybe some loans and it would not be much. SO.. I called the Nursing dept., nothing really there either. So.. in the end... I got no real assistance from the school. I have heard since then that this school is terrible with paper-work, following up, folks are hard to run down and the like.. just a mess to deal with, and I have now witnessed this for myself. It was too late to try and find another school. I was set to go to RN school and had been planning this a long time. It was suggested on this board I check out Sallie Mae and I did. Credit not being all that wonderful, I was rated "fair" and therefore had to pay a higher interest rate.

    In all good faith, I think the loan stinks too, but I have already deferred once and have been working on this decision for about a year. I bought books on fin. aid a few months back and read them. So I have tried to learn the ropes.. my first degree was paid for. I am SO THANKFUL that my first degree was paid for. I am very grateful. When the time came, the people who were supposed to help me in fin. aid were virtually useless.

    I have a minor heart condition so my docs. have told me not to work while in school fulltime. I also am Ok now, but had a devastating illness a few years back that left me on life-support. I am better now, but still have remnants from that illness to deal with... so my doctors want me to just focus on school. I decided well Ggeeeeezzzzz... I will HAVE to work so I can at least pay on some of the interest on my loans. My husband told me last night he will help pay toward the interest so I will not have to work. He wants me to get through Ok. He does not make much either, but says he will help.

    We have no children and no big debts. I have a small car payment and he pays the mortgage. I help with the lights, groceries, etc. I have an emergency phone plan only and the cheapest DSL plan you can buy. Our bills are really not that much. I buy most of my clothes second-hand off eBay and in thrift stores. In fact, almost all of my Xmas presents were purchased off of eBay. So we are not living an extravagant life style and I clip coupons on a regular basis.

    As far as someone saying "stay in your job now and go to school" that really is not possible for a number of reasons. One I already mentioned about the health reason and another is the job is an hour and 15 minutes one way and involves late nights and then early days. That would not work with my day school schedule. I work for a local TV station in my area. The news and the news people are NOT forgiving. News, like working in a hospital, is an around the clock job. Disasters, homicides, etc. you HAVE to be there. The news goes on...it's not like a flexible schedule like a clerk or a waitress.

    I am 34 and feel like it's now or never. I have been hemming and hawing about this for a long time. I have not been happy in my current field with no advancement and the pay is horrible... I make around $10 an hour. That is BAD for someone with a double degree (Broadcasting and Bio, Pre-Med). I was an honor student and attended one of the best colleges in my state. Really sad. I have always loved the medical field (hence the double degree) and know I would make a great nurse! I agree with you that the loan stinks. I do. But once I get in and the new year rolls around, I am going to apply for scholarships out the gazoo. I have looked into scholarships, but since it's the end of the year, most have already dead lined.

    I will stay in touch... hey.. may need more advice.

    THANKS to everyone, and those are some of the reasons I went the way I did. Best to you!!! E



    :Snowman1:
  12. by   sunnyjohn
    Epona,

    I hope things work out for you. I've had to turn down acceptance twice and may have to do it again because of finance and illness. so I feel you!

    This time I've made up my mind. If I have to take a decent loan to go, I'm going to take the loan. It's high time I get going.
  13. by   Epona
    Yup. I am in the same boat... it's now or never.

    Best of luck to you!!! Epona

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