The Largest Student Loan Actually PAID OFF!

  1. 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.
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  2. 53 Comments

  3. by   JaxiaKiley
    Student loans can be scary when people do not use them responsibly. I know someone who has over 100k in loans and still hasn't finished any type of degree (even a general AA). Now THAT is scary!

    It will be interesting to see if people can actually manage to pay these things off.
  4. by   sunnyjohn
    I'm gonna live on $24k/year for 36 months after I graduate to pay off any loans and save up the rest.

    The savings after the loans are going to be used to start up my business ventures!

    I have no kids, have lived WAY below poverty and I'm very, very very cheap (twice used tea leaves, sweaters indoors etc).

    My plan is fairly detailed.
  5. by   BSNtobe2009
    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.
  6. by   llg
    I think the OP is asking a very good question. I, too, have had the same concerns for some of the posters on allnurses. Some people seem to think that it doesn't matter how much debt you have. Some people don't seem to have thought about the sacrifices they will have to make later to pay off those loans. They will need to work full time and "live cheap" for many years to pay them off, yet I read that they are planning to have children, take expensive vacations, buy nice cars, etc. after they graduate.

    Those of you who have successfully made the sacrifices needed to pay back the loans and/or have concrete plans to do so would be doing a great service to your fellow nurses and students if you would share some of your stories.

    Thanks to the OP for starting this thread.

    Personally, I didn't need an undergraduate loan ... but did put myself through grad school twice. For all three programs, I received some scholarship money that helped a lot -- which shows that grades, test scores, and extra-curricular activities DO count and can help you a lot.

    I also waited a couple of years in between each "round" of school during which I not only gained nursing experience to enrich my formal education, but I also saved up money to pay for school. I lived in inexpensive apartments, did not buy a lot of luxuries, and put money aside each month to help pay for grad school. I worked part time through grad school to cover my basic food and shelter. Between the part time work, the savings, and the scholarships, I was able to cover most of my expenses and only needed small loans. After graduating, I continued to "live cheap" for a couple of years until I paid them off.

    llg
  7. by   sunnyjohn
    Quote from llg
    I think the OP is asking a very good question. I, too, have had the same concerns for some of the posters on allnurses. Some people seem to think that it doesn't matter how much debt you have. Some people don't seem to have thought about the sacrifices they will have to make later to pay off those loans. They will need to work full time and "live cheap" for many years to pay them off, yet I read that they are planning to have children, take expensive vacations, buy nice cars, etc. after they graduate.

    Those of you who have successfully made the sacrifices needed to pay back the loans and/or have concrete plans to do so would be doing a great service to your fellow nurses and students if you would share some of your stories.

    Thanks to the OP for starting this thread.

    Personally, I didn't need an undergraduate loan ... but did put myself through grad school twice. For all three programs, I received some scholarship money that helped a lot -- which shows that grades, test scores, and extra-curricular activities DO count and can help you a lot.

    I also waited a couple of years in between each "round" of school during which I not only gained nursing experience to enrich my formal education, but I also saved up money to pay for school. I lived in inexpensive apartments, did not buy a lot of luxuries, and put money aside each month to help pay for grad school. I worked part time through grad school to cover my basic food and shelter. Between the part time work, the savings, and the scholarships, I was able to cover most of my expenses and only needed small loans. After graduating, I continued to "live cheap" for a couple of years until I paid them off.

    llg

    Yes, If anyone has done it for nursing student loans and paid it back on a nurse's salary please let us know.

    I have done rapid debt repayments (not school loans) for $35K, but I lived very cheapy.
  8. by   mom23RN
    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.
  9. by   fetch33
    I know someone with close to 60K in student loans. This was from a public university too, so she must have financed the whole thing. I'd be scared to death to have that kind of loan balance upon graduating. I am forever grateful for parents that put me though college. I am saving like mad to have enough put away for my kids. I don't want them to have to worry about loans.
  10. by   np_wannabe
    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!
  11. by   tulips134
    It can be done. I did it. When I graduated from a BSN school, I had over 32K student loans. My parents didn't have the money so I had to put myself through college. I was scared to death that I had an enormous amount of debt on my shoulders. So, I did tons and tons of overtimes, sometimes working double shifts, not going out on weekends and stayed home as much as I could when I was off, brought lunch to work, lived very cheaply with my parents( rent was $300/mo). Within 2years after graduation, I was able to pay it off completely. At that time, the interest rates were high 7-8% for federal loans and 11-13% for the private loans. Then, I continued to live very frugally and save for the down payment on a house. I was very lucky enough to get into the real estate before the whole housing market took off. I was doing the same thing with the graduate school. That's another 20K of my own money going towards Master's even though the hospital I work at paid partial tuition.
    That's close to 60K I had to spend on my education (undergard and grad school)but it's well worth it. IMO, the money is well-spent or invested. I am able to earn on average 85K/yr ( 6yrs and counting as an RN). If you are able to earn let's say 70K/yr for the next 30yrs. That's over 2 millions in earnings..maybe more.
    Because of my nursing education, I am able to fully max out my retirements( IRA, 403b), bought a house, a brand new car that is fully paid off, student loans fully paid off, and have a career that's in-demand. And...so on and so on...
    I highly recommend that anyonewho is starting out...please read these books
    Suze Orman " the money book for the young,fabulous and broke"
    David Bach "the automatic millionaire"

    The books simplified ways to get out of debt and into financial independence
    on a small budget or income. The key is to live below your means.
    Best,
    tulip
  12. by   NurseNicoleRN
    i have a 20, 000 loan from my adn that i got through a private loan company my payment is 145 a month for 10 years......im going back for my bsn and will probably rack up another 40, 000 by the time i get my bsn and msn but its worth it since ill be done completely and able to advance plus my work reimburses and im going to use that to pay off my old school loan and the new one will be federal and ill consolidate at a low rate........my husband is an accountant with loans too but he is good at arranging loans so that they can be paid off quickly and without hurting my everyday living
  13. by   smk1
    It scares me as well. I expect to owe about 12k when finished with my ADN. Plan to put 1k per month on that and have it paid off in 1 year. I don't like debt.
  14. by   CritterLover
    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.

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