take out school loan even if I do not need to??

essarge · Feb 11, 2003

I know that the government offers loan forgiveness on certain loans if you work in a critical shortage area. I believe that they are the Perkins loans. I live off my loans while I'm in school and need them so that I don't have to work full time to make ends meet.

Take a look "down the road" to figure out if you may need them. If you don't, don't get them. They will affect your credit rating even if they are not in repayment status.

tonchitoRN · Feb 11, 2003

check the fine print. some of those low interest loans start accruing interest from the day you sign your name. they get you in the end. literally.

Q. · Feb 11, 2003

Originally posted by fergus51
I think it's a mean thing to do. There is only so much financial aid to go around, so if you don't need it you shouldn't use it.

That's a good point. And with the default rate these days, there's not as much money available for other students.

maureeno · Feb 11, 2003

NO!

since financial aid is a limited pool taking what you don't need deprives others who do need.

my first nursing instructor told us, 'nursing is all about ethics', I think your asking the question you did shows you understand this. :cool:

on the other hand if you are going to have to work a bunch while you go to school

you might be needing the $$ yourself!

llg, PhD, RN · Feb 11, 2003

Originally posted by fergus51
I think it's a mean thing to do. There is only so much financial aid to go around, so if you don't need it you shouldn't use it.

Suze Orman, one of those financial advisors on TV often brings up this point when people ask that question on one of her "call-in" shows. She reminds the callers that it is not ethical to take money out of the hands of those who need it unless you really need it yourself.

I'm glad I'm not the only one who feels this way.

I took out a loan to help pay for grad school, but paid it back in about 3 years instead of the usual 10 years. That way, the money was made available for other students who really needed it.

llg

Dr. Kate, BSN, RN · Feb 12, 2003

While there are more and more facilities that will pay part of all of your student loans, remember that the money the facility pays is considered taxable income. That's taxable income you have had no taxes deducted from and still have to pay taxes on. There are cases where this might be the most reasonable alternative but it deserves informed thought.

Another thought, as my financial planner says: don't choose a long term solution for a short term problem.

SmilingBluEyes · Feb 12, 2003

Unethical and selfish if you can do it for yourself. I did mine via GI Bill, costing no one a thing but myself, with my initial investment. If there is NO other way, I can see it. But if not, don't dip into the till when others need it more than YOU do.

back2school · Feb 13, 2003

Most of the answers here have seemed negative about a loan. I am in the process of making this decision now and I've been told a loan is often beneficial even if you don't need it. If the interest is deferred until you graduate, how can you go wrong? The interest on loans is low now and you can make more money investing the money you have. I am also thinking about the Loan Forgiveness programs like we have in our state. I will be talking with the financial aid office at the school I am supposed to attend before I make my decision. I'm sure they will have more insight than I have at this point ;^)

NEW Nurse Loan Forgiveness Program Announced

The Pennsylvania Higher Education Assistance Agency unveiled a new nursing loan forgiveness program in an effort to address the nursing shortage in the Commonwealth. The "Nursing Loan Forgiveness for Healthier Futures" will forgive up to 25 percent, to a maximum of $12,500 of a nursing student's loan principal over three years.

It is expected that nearly 3,600 nursing grads will benefit from the program next year and could grow to as many as 12,800 over the next three years.

To qualify to participate in Healthier Futures students must graduate from an approved professional nursing education program during or after 2003. Nursing students can graduate from an LPN, RN, BSN, MSN, or PhD program to participate. The program encourages LPNs with a two-year degree or certificate to return to school to become an RN and qualifying nurses to return to graduate school to prepare to replace nursing faculty who are approaching retirement.

In return for benefiting from the program nursing graduates must agree to work as a direct-care nurse at an approved Pennsylvania healthcare facility or as a nurse educator in the commonwealth for one to three years. Out-of-state students attending eligible nursing school in Pennsylvania can participate in the program provided they work in the state after graduation. The program requires nursing graduates to work for a hospital or health system that has agreed to match at least dollar-for-dollar PHEAA's loan forgiveness contribution.

The Hospital & Healthsystem Association of Pennsylvania said at a recent press conference that they are confident their 250 hospital and healthcare system members will make the required match.

PHEAA's portion of the program will be funded with $13.3 million derived in savings from the refinancing of five PHEAA bond issues.

Applications for the loan forgiveness program will be available from PHEAA in early 2003.

Visit PHEAA online...http://www.pheaa.org

Federal Program Information

On the federal front, the recently passed Nurse Reinvestment Act will authorize federal funding for scholarships and loan repayments for nursing students who agree to work in shortage areas after they graduate. The bill was signed by President Bush on August 1, 2002. If the Nurse Reinvestment Act does not receive adequate funding it will not be of any benefit to the nursing profession.

PSNA has received many phone calls, emails, and letters from nurses all across the state with in interest in such programs. We know it is important to you and will continue to post updates to this nursing loan forgiveness information as new information becomes available.

maureeno · Feb 14, 2003

from Post #20

>>Most of the answers here have seemed negative about a loan. I am in the process of making this decision now and I've been told a loan is often beneficial even if you don't need it. If the interest is deferred until you graduate, how can you go wrong? The interest on loans is low now and you can make more money investing the money you have.

-----------------------

You can go wrong by doing wrong.

are you aware tuition is going up at state supported schools, even up as much as 25% in Mass.? are you aware BushII's proposed budget has less money for financial aid? the financial aid pie is not unlimited.

Mkue · Feb 14, 2003

I've never heard of the Federal Gov't running out of money for Federal Student Loans. I've heard of the Pell money running out.

maureeno · Feb 14, 2003

guaranteed student loans are subsidized, that is why the interest can be deferred.

OBNURSEHEATHER · Feb 14, 2003

Originally posted by jgg767
I can afford to go to college without taking out school loans.....
However, I have been wondering should I take them out anyways

Hmmm.... imagine yourself when you're done with school and you're paying those loans off. IThink long and hard about whether or not you'll have anything to show for it when you're paying them off. That will make a difference in whether or not you'll regret it.

I mean, if you need them to buy books, living expenses, etc, thn it's a necessary evil. But if you get them just to be a little more comfortable.... are you really gonna remember and appreciate those types of things in 5 years when you're still paying them off?

Just a thought. From someone paying off a loan because she still wanted nice Christmas' even though she wasn't working. None of us even have those presents anymore, and I think of that when I write a check every month.

Heather