The Largest Student Loan Actually PAID OFF! - page 3
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. ... Read More
Dec 5, '06Quote from BSNtobe2009Hello,Well, that is why I posted this thread, because alot of people are taking out the loans, but I am very curious how they are living after they actually enter the pay-back period and if they are, now that they are in payback, would they recommend taking out large loans to others.
Well, I think the loan really only needs to be "large" enough to cover your cost of attendance. Anything over that seems out of line, to me anyhow.
Gen-queen of ramen noodles, rice, potatos, mac and cheese and so forth...yet, I will indeed splurge and keep myself with toothpaste, soap and so on.
Dec 5, '06Quote from QuickbeamThank you for posting that.Don't know why I'm posting this but I feel moved to do so. I really have a lot of sympathy for those shouldering the tuitions of today. My first degree was 1973-1977 and I graduated owing nothing due to Residence Life jobs (RA and Hall Director). I'm no rocket scientist...it wasn't that hard to "work your way through", especially at a state school. My accelerated BSN program took all my savings but I also got out with no debt in 1987.
Because of this thread, I called my schools.
The tuition at my first school has increased 15 fold in 30 years.
The tuition at my accelerated program has increased 5 fold in 19 years.
My salary certainly hasn't seen that kind of jump. I feel lucky I went when did but I feel dreadful that the burden has gotten so horrific. Conditions being the same, I'd have not been able to go to school now. It's a crime.
It seems that some folks may not have realized that "large" loans are needed just to cover the cost of tuition.
So the "large" of the loan is relative to the large costs of tuition.
Dec 5, '06This is kind of a tangent but relates to the discussion so I have posted it for you all. As a student worker I would frequently talk with an instructor I worked with about how much my education was costing me. One day he left this on my desk for me to read.
What do you think of it?
On My Mind
College Is a Bad Investment
Richard Vedder, 06.20.05
Pouring more taxpayer money into universities doesn't lead to prosperity.
When university presidents plead for government money, they often make an argument for social investment. Pump funds into higher education and the economy will grow, they claim. After all, this is an information- and skill-based age in which college graduates are far more productive than their less-educated peers.
True. But the evidence suggests that increased public funding for universities doesn't lead to greater prosperity-and may even reduce the chances of it. Compare the growth in real per capita income in states that spend a lot on higher education with that of states that spend less and a few surprises show up. Over the past 50 years low-support New Hampshire outdistanced neighboring Vermont on nearly any economic measure, though Vermont spent more than twice as much of its population's personal income on higher education (2.37% versus 1.15% in New Hampshire). Missouri, with modest state university appropriations (1.32% of personal income), grew faster than its neighbor to the north, Iowa (at 2.41%).
Similar examples abound. Using data for all 50 states from 1977 and 2002, I compared the 10 states with the highest state funding for universities against the 10 states with the lowest. The result: The low-spending states had far better growth in real income per capita, a median growth of 46% compared with 32% for the states with the highest university spending. In 2000 the median per capita income level for the low-spending states was $32,777, 27% higher than the median for the 10 states where higher education got the most state money.
The results were the same when controlling for a state's oilfields or other energy sources, the age distribution of its population, the prevalence of labor unions, the tax climate and other factors that could affect growth-even the proportion of college graduates. This despite the fact that the states that were growing most quickly tended to have a high proportion of college graduates.
How could this be? Colleges have devoted relatively little new funding over the past generation to the core mission of instruction (spending only 21 cents of each new inflation-adjusted dollar per student on it), preferring instead to assist research, hire more nonacademic staff, give generous pay increases, support athletics and build luxurious facilities. And while in the private sector companies have learned to get more work out of fewer employees, the opposite appears to have happened in higher education. In 1976 American education employed three nonfaculty professional workers (administrators, counselors, librarians, computer experts) for every 100 students; by 2001 that number had doubled.
Another piece of the puzzle: Only the weakest of positive correlations links funding level and enrollment. Even if students enroll, they don't necessarily finish school. Nearly 40% fail to graduate within five or even six years, suggesting that many who attend universities don't much benefit from them.
Yet another explanation is one Forbes readers know all too well. Taxes reduce private-sector activity. People who must pay high taxes tend to work and invest less and also tend to migrate to lower-tax areas. In other words, increasing funding to universities means transferring resources from the relatively productive private sector to higher education, which tends to be less productive and efficient.
So what should we do? College is still a decent individual investment, certifying that the graduate meets minimum standards (often missing in high school) for competence, intelligence, maturity and literacy. But we should rethink the nature and magnitude of public support for universities. State governments, facing rising Medicaid bills and demands for primary and secondary education funding, are already slashing their support. I hope and expect this trend to continue. Big changes are coming to higher education. They are overdue.
Richard Vedder, professor of economics at Ohio University and author of Going Broke By Degree: Why College Costs Too Much (AEI Press)
Dec 5, '06Quote from mom23RNI had a friend who graduated with a combined med-school and undergrad debt of $250,000.00. It's staggering.I don't know anyone with excessive student loans as a nurse but I met one of the residents who did a stint in our ER who was close to $250,000!!! Even for a doc I find that a tad extreme!!! You could own a very nice home around here for what that payment would be.
As for student loans I couldn't find anywhere the actual default rate, but it's pretty high. I think some of the sites like Fannie Mae quoted that their default rates on student loans were DOWN to only 14%. I think that's sickening that AGAIN people borrow money that they can't afford to pay back so they just don't.
Dec 5, '06I paid for my ADN myself. It was a cheap technical school, but NLN approved for the ADN. I'm amazed at how cheap it was to attend. I worked full time as well to pay the bills.
Now I'm still working full time and I took out loans to get my BSN because I don't want to use my savings, and any money I save goes into the household expenses. I made the decision to go to a private online school (although reasonably priced as far as private online schools go), instead of the cheaper RN to BSN program here because I was working nights at the time and online seemed the thing to do.
I have borrowed only $1000.00 per semester and typically spend around $1800.00, so I am incurring some out of pocket expense.
My payments, if I don't continue on to grad school will be only $50.00 a month for 10 years. But knowing me I'll pay it off early.....if I don't go to grad school. To me it's worth a little debt not be be so broke now, but I don't want my payments to be too horribly high. (I'm broke anyway. LOL)
Of course, I'm off topic because you were asking about those with very high debts.
I have to wonder like the article above, is the extreme debt really worth it?Last edit by Tweety on Dec 5, '06
Dec 5, '06well, i guess i'm one of those taking on "large" debt... and i thought i was doing pretty well.
here's my story:
$5k in subsidized stafford loans from undergrad (i have a BS and an MS in other fields) - not currently accruing interest
right now, i'm in a direct-entry masters that is 3 years long and costs $30k (!!!) a year. I have a scolarship for $15k each of the first two years - so that's $30k for the first two years, and $30k for the thrid year (though i'll have my RN by then and hopefully be working, so maybe will need less in loans!) for $65k total counding undergrad.
Now, about half of that is subsidized stafford, so no intrest while i'm in school, and half is unsubsized stafford, so 6.8% intrest right now.
BSN2009, whaddya think? Am I getting myself into trouble? I'll have an MSN-FNP degree after i'm done, but plan on working as an RN for at LEAST a year after graduation before pursing FNP jobs. I do live in a $$$ city, not much I can do about that!
janonyLast edit by janony on Dec 5, '06 : Reason: spelling
Dec 5, '06Quote from TweetyAren't med school loan repayments often covered by the doctor's first employer? I have this idea in my head that a lot of med school loans are taken care of... not sure where I got this from though.I had a friend who graduated with a combined med-school and undergrad debt of $250,000.00. It's staggering.
Dec 5, '06Where I'm living, most students get student loans from the government. You have no payments during school and during your first six months after graduation. After that 6 months, payments and interest starts.
A bunch of years ago, to prevent students from defaulting on the debt, they enacted some type of law that carries your student loan debt over with you even if you declare bankruptcy. No way to get out of it now (although I'm sure theres a loophole somewhere that someone will figure out).
Dec 5, '06Quote from MeloneyNope...DOCTOR'S were the major reason why you can't bankrupt student loans anymore.Aren't med school loan repayments often covered by the doctor's first employer? I have this idea in my head that a lot of med school loans are taken care of... not sure where I got this from though.
What was happening, was that doctor's were graduating with on average $200,000 in debt...and once they got a job, bought their big house and furnished it...filed for bankruptcy in their 2nd to 3rd year after graduating.
They STILL had an extremely high salary, so they could well-afford to pay cash and not use credit for several years until their credit scores went back up...to them, it was worth it not to pay it back.
That is why the courts had to put a stop to it.
Dec 5, '06Social scientists will have much to write about in the years to come about the effects of huge student loan debt on people. It is intimately tied into the concept of the "quarter life crisis"-- 20-somethings moving back home with their parents with expensive college degrees, barely able to land retail jobs and trying to pay off student loans. I cannot imagine that years ago people could start a family and buy a home on one income with only a high school diploma.
While I am well saddled with student loan debt (I was an independent all through my entire college career) I think it is an investment that no one can ever take away from me. No one can ever take away my life experiences or unique perspectives that were shaped and influenced by my years of college. I met and worked with amazing people, lived in amazing places. When I am on my death bed I won't be lying there thinking, " I wish I did this or wish I studied that... if only I was brave enough to take the plunge..."
Dec 6, '06I am a career changer, have a BS and MS in another field, then went into nursing several years later. I was still paying off my original student loans and accumulated more debt while doing an accelerated nursing program. I am now working 6 days a week to just make ends meet, however, I am single, live alone and am doing it ALL by myself. It is very difficult, but I have called each lender to find out my options, they will work with you if you talk to them (change due dates so that it comes out of a specific pay period, reduce monthly amounts, etc.) It can be done, but it's definitely not easy and to be honest at this point I don't think it was worth it, but I will give it more time. I am very grateful our dept. is so short staffed that the opportunity to work OT is there, otherwise I would have to find a second job to just pay the rent, loans, and stuff. I would recommend consolidating all your federal loans and then consolidating all your private loans, but not federal and private loans together. Reducing your monthly payment amount means paying more interest and for a longer period of time, but sometimes you gotta do whatcha gotta do, you can always pay more each month if you can, but at least you're not committed to a really high payment each month if you change your payment amount. Call the lender, ask them how they can help you so you won't default. Just pay on time and every month (for the rest of your life) and you'll be ok. Hope this helps.
Dec 6, '06physicians arent making 100k in there first year and there usually taking out more than 100... not to mention there undergrad
Dec 6, '06kinda off topic, but my medical director and personal doc paid his two daughters through undergrad and med school...so they are now well into their residencies, one in boston, the other in michigan, and doing well with NO DEBT. what a gift for a doctor to start out with no debt over their head.
i paid my way through LPN school with wages earned in my high school days, then the final semester on credit cards, which were promptly paid off working OT like crazy.
i am now almost done with EC's program (having to take cpne) and paid it all myself (with some help from books from nurses/docs at work).
don't know how i'll pay for my BS and MS, but that's the least of my worries at this point. right now i just want to get through this radiation therapy and get healthy again.
i went to take out a student loan a few years ago when i was told (WRONGLY) that LPNs could be case managers, so i took out a loan, got my schedule and then found out i certainly COULD take the classes, but i would never be employable without the RN behind my name. i was able to withdrawl so it was all paid back, but i had to pay back the few hundred bucks worth of books, since they were considered "used". lesson learned, i guess!!!
how much do docs make right out of schoool, anyway? i have no idea, i don't work with residents/interns. the only docs i work with are well established and $$$$$.