The Largest Student Loan Actually PAID OFF!

[BSNtobe2009]

I am just curious about something here.

I am very, very concerned and alarmed at the number of folks that I have seen on the board that have student loans of $60K $80K $100K for an undergrad.

The payments on that are so incredibly staggaring I don't see how anyone can make those payments and live a decent standard of living unless you have a spouse that is rolling some money in.

I think it would be a very, very healthy thing to know if anyone has ever finished paying off their student loans, the amount you paid off, and if you have, let's say, over $60K and are currently in payback, would you advise it to others?

I just feel that there is a huge difference in a physician taking out $100K in loans for med school when he will probably be making that or more in his first year, than an RN who will probably be making half that figure as a new grad.

Any thoughts.

[CritterLover, BSN, RN]

i graduated with well over $40,000 in student loans. to that you can add a pretty hefty credit card balance from charging everything i could while i was in school, while making only the minimum payments.

for the first several years out of school, i paid a little extra each month on my loans, and magaged to buy a nice car and then a small house.

however, a few years ago, i decided that my #1 goal is to get out of debt. i cut my spending drastically and started working alot. i think, though, that if i had been better at money management when i first got out of school, i wouldn't be needing to work so much right now.

at the same time, if i had not borrowed that money to finish my education, i'd never be able to make the money that i am able to make right now by working a bunch of overtime.

when i look back on it, i lived so frugally when i was in school that it was hard not to "reward" myself when i first got out. and really, i didn't spend a bunch of money on stupid things. after all, i'm still driving that car and living in that house.

i remember when i was qualifying for the loan to buy my house. the loan officer remarked on how much my income had increased over a the three preceding years. i remember saying something to the effect of "well, isn't that what is supposed to happen when you graduate from college?"

in the end, i think it was a smart investment for me. however, it is really important to understand what you are doing when you take out those loans. i'd really have to question, though, anyone who accumulates >$50,000 for an rn degree.

[Lisa CCU RN, RN]

Isn't anyone taking advantage of the hospitals paying back the loans?

[sunnyjohn]

Isn't anyone taking advantage of the hospitals paying back the loans?

I personally don't like the idea of hemming myself in. I would only do I if there was a buyout clause or if the hospital did a month-by month or quarterly payout

There are too many variables the first year in nursing for me to think about it.

[Hellllllo Nurse, BSN, RN]

Isn't anyone taking advantage of the hospitals paying back the loans?

I have known a number of nurses who have done this and regretted it. Every single one I've known has paid back the money and bought out their contracts in order to escape from a bad hospital/job.

[RNin'08]

Isn't anyone taking advantage of the hospitals paying back the loans?

Very few in this area offer to pay back loans or give a sign on bonus these days. The most money I've found available through local hospitals will only contribute $5k of scholarship money and require a 2 year commitment...considering I'll still have well over $30k after what they would pay (and they offer one of the lowest hourly wages around) I don't think it's worth it in my situation. Although I do apply for any and all scholarships I find that don't have work commitment or other various 'strings' attached.

DH supports us right now and we plan to continue that for the first year or so after I start working, in order to pay off the majority of my loans.

Thanks to the OP. This thread is really interesting!

RNin'08

~my reality check bounced~

[LydiaNN]

Wow, when I went to nursing school, the highest Stafford loan you could borrow was $2500 year! My school had a loan program where you could borrow another $1000 a year. Of course, a full year's tuition plus room & board only come to $5500 back then, too.

[llg, PhD, RN]

I know of one woman who had chosen nursing as a "non-traditional" student. By the time she graduated and started working, she was in her 50's and responsible for the care of her mother who had health problems. This nurse had gone to a fairly expensive school and had racked up a little over $70,000 in loans.

The assistance her mother needed was expensive and her own age and health made it difficult for her to work many extra shifts, leaving her unable to pay her loan fees some months and she was falling behind. The last time I talked with her (about 3 years ago), she didn't know how she would ever pay off those loans. (Think about it, at her age and not in the best of health, she would be lucky to be able to work full time for another 15 years at max. Her health would probably force her to cut back within 10 years.)

I think about her sometimes as I read some of the posts on this bulletin board about people borrowing so much.

llg

[smk1, LPN]

I know people that are borrowing to go on spring break, extra money for partying etc... I can't imagine doing that. I borrow what I need to pay for tuition, fees, books and child care, there is a little left over from that, but not much, and it usually comes in handy for a supplemental book or gas money. I really should have been applying for scholarships. I have the grades and have never done it. I could kick myself now!

[Schatzi RN CEN]

I went to LPN school and then a 1 year LPN to RN program as a single mom and took out the max amount of student loans to pay for my living expenses, while the facility I work for paid for my tuition. This left me with approx. 20k in student loans. My payments are not too bad at $ 200 a month. The ability to make a good hourly wage was definately worth taking on student loans. If I had to do it over, I would not tie myself down again by letting my facility pay for some of my schooling as it is keeping me from taking a job I really want.

[HappyNurse2005, RN]

I think my ADN loans were 16-17K, maybe a little more. paying 190 a month. not that bad, b/c i can afford it now. cant imagine 60K in loans, though.

[BSNtobe2009]

I'm bumping....LOVE this thread, BSNtobe2009....

What happens once you are out of school and are faced with a HUGE debt?? Do you live frugally to pay it down? Do you live it up since you are out of school, working, and making money??

What is life like for you when you get out?

If you paid off your loans, how did you do it?

Great concept OP!

Thank you!

Just from working in lending for years, I considered taking out loans for around $50K in instead of selling my home and moving, and then I rethought it....with paying the loan back PLUS my normal living expenses...I would have been making the SAME amount of money or less than BEFORE I went to nursing school...so to me, that defeated the entire purpose of it.

I just wanted to see if there was anyone currently in repayment and how they were making it....because even the best laid plans don't work.

[DBlack1]

I went to school with some girls that purchased cosmetic surgery with student loans. I thought it was funny, but the interest rates were better than a credit card.

I have a bud who is 100k in debt, but that is for a Masters in Finance from LSU. He made around 60k his first year out, and could be in the six figure range in as little as 4 years. Well worth the debt.

My aunt is a pharmacist, makes around 150K a year, and is still paying 30 year old student loans.

I have none. I would have ate peanut butter/jelly every meal if I did need the loans.

My brother attended The Univ. of Colorado at Boulder for a semester and stayed in the dorms. His room mate had over 100K in debt on a liberal arts degree and still had a couple semesters left. That my friends is very dumb.