Experience with PRIVATE student loans

Nursing Students General Students

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I have a bachelors degree and I have been informed by all the nursing schools (community college ADN programs) that I do not qualify for any government financial aid/student loans due to my BA. I can however get private student loans through Wells Fargo or Sallie Mae. Does anyone have any experience with private student loans? Advice? Which bank is better? How do private differ from government student loans? Any input from students who have had to go the private route would be much appreciated!! Thanks!

Specializes in PICU, Pediatrics.
You cannot go backwards and still receive aid. If you have a bachelor's you can usually still qualify for enough aid to get another bachelors, but going to get an associates degree is a whole other ball game.

I don't think this is true. I have a B.A and I'm currently receiving Federal loans while taking my prereqs. The catch for me was to simply enroll into an A.S. program as a Pre-Nursing major (since it includes the necessary prereqs by default), though I have no intention of completing the A.S.

Also, while having a previous Bachelors will disqualify you for federal grants and school-based aid for an ADN program, simply having a Bachelors should not automatically disqualify you from receiving loans for the ADN/ASN (hence the program that I'm enrolled in).

What I've learned in dealing with this issue in the last few months is that federal loan aid is usually always available for you unless you reach the limit for your particular level of study. The aggregate limit for fed loans for undergrad students is around $31k for dependent students and $57,500k for independent students. So, if you've met that limit at any time as an undergrad, you won't be able to qualify for additional funds.(However, 2nd degree BSN programs usually have slightly different mechanics as they will often still offer Work-study, additional loan funds, scholarships etc.)

Have you definitely met those limits? Before you start looking into private loans, I'd just make sure that they are actually correct.

Best of luck!

I don't think this is true. I have a B.A and I'm currently receiving Federal loans while taking my prereqs. The catch for me was to simply enroll into an A.S. program as a Pre-Nursing major (since it includes the necessary prereqs by default), though I have no intention of completing the A.S.

Also, while having a previous Bachelors will disqualify you for federal grants and school-based aid for an ADN program, simply having a Bachelors should not automatically disqualify you from receiving loans for the ADN/ASN (hence the program that I'm enrolled in).

What I've learned in dealing with this issue in the last few months is that federal loan aid is usually always available for you unless you reach the limit for your particular level of study. The aggregate limit for fed loans for undergrad students is around $31k for dependent students and $57,500k for independent students. So, if you've met that limit at any time as an undergrad, you won't be able to qualify for additional funds.(However, 2nd degree BSN programs usually have slightly different mechanics as they will often still offer Work-study, additional loan funds, scholarships etc.)

Have you definitely met those limits? Before you start looking into private loans, I'd just make sure that they are actually correct.

Best of luck!

That is really interesting, I have never taken out a single student loan, even for my first degree so I know I haven't met any limits. I wonder why all the school say students with bachelors degrees don't qualify for federal aid! I am done with my prereqs, I paid for those as I went...maybe it is because I plan to get the associate degree..?

The schools in my area do lottery style selection so I don't know when or how soon I will actually get in. I guess filling out my FAFSA will be the true test, when I am able to fill it out that is.

I have both federal and private as well. I didn't pick Sallie Mae for the private, I did Wells Fargo. I only went with them because they were offering me more money, and my aunt with the credit rating of God or someone was willing to cosign. Before graduating, I called Wells Fargo, and with the amount I took out, it would take me at most 15 years if I paid the minimum, and there's no penalty for paying it off early.

Regardless of the amount you take out, even if you take out the highest ($25k), they'll offer you the chance to take out more (like another $25k). If you're only doing nursing school, assuming you play your finances right, $25k should be enough, but I'm going by my area so take the last sentence with some grains of salt.

Max I should need for my program would be 20k, and that MAX. How soon do you have to start paying back the private loans? Do you recall what your interest rate was? Sorry if that is too personal of a question!

Specializes in Urology, ENT.
Max I should need for my program would be 20k, and that MAX. How soon do you have to start paying back the private loans? Do you recall what your interest rate was? Sorry if that is too personal of a question!

Huh, I need to check on that, but I don't think the rate was too high -- aunt with awesome credit score probably secured that. Private and federal are the same with payback -- you have a 6 month grace period. When I told both parties (Wells Fargo and the ones responsible for my federal loans) I graduated, they said they didn't have the paperwork that said I was done. I'm still making the assumption I need a job by May or June in the event they turn everything in around that time.

Depending on where you find a job and all that stuff (if you aren't part of the population post graduation with job hunting woes), it's possible you'd be able to pay back your loans in a short amount of time. I'll tell you combined my loans are 2 cars (or as I oh so lovingly call them, the BMW I will never drive), and if I had a full-time job and a part time job on the side, I'd probably have the private loan done and over within a year.

Huh, I need to check on that, but I don't think the rate was too high -- aunt with awesome credit score probably secured that. Private and federal are the same with payback -- you have a 6 month grace period. When I told both parties (Wells Fargo and the ones responsible for my federal loans) I graduated, they said they didn't have the paperwork that said I was done. I'm still making the assumption I need a job by May or June in the event they turn everything in around that time.

Depending on where you find a job and all that stuff (if you aren't part of the population post graduation with job hunting woes), it's possible you'd be able to pay back your loans in a short amount of time. I'll tell you combined my loans are 2 cars (or as I oh so lovingly call them, the BMW I will never drive), and if I had a full-time job and a part time job on the side, I'd probably have the private loan done and over within a year.

Thank you so much for this, it is so reassuring!! I feel a lot better now that I have some of my questions answered! :)

Specializes in Critical Care, Education.

I didn't see this info in PPs - forgive me if I am repeating. Some 'schools' are not eligible to participate in Federal loan (subsidized or unsubsidized) programs because of high default rates or noncompliance with other requirements. These are mostly commercial (investor owned, for-profit) entities. Here is a web site with the current info on student loans Getting Your Head Around Student Loans - American Student Assistance

When you hit the $57,500 Subsidized Federal Student Loan ceiling it's not a problem--if you borrow more it just rolls over into Unsubsidized ;)

Thank you so much for the replies. I really would like to avoid having to take out loans. Do either of you know anything about collecting unemployment and going to school. I have never been on unemployment before and I live in California if that makes a difference.

How long ago were you laid off from work? If you are in nursing classes in the first 16 weeks of your claim you may be able to qualify for the California training benefits program. You have to call edd and ask to apply. Google it for more info. I got laid off 1 week before my nursing classes started and was able to qualify : )

How long ago were you laid off from work? If you are in nursing classes in the first 16 weeks of your claim you may be able to qualify for the California training benefits program. You have to call edd and ask to apply. Google it for more info. I got laid off 1 week before my nursing classes started and was able to qualify : )

See I am still working, but when I get into a nursing program, I plan to quit. I always thought you couldn't apply for unemployment if you quit your job, but I know people who have quit their job and gotten it, so I figure, why not me too??

I had the same problem.

Even though you have a Bachelor's degree you still qualify for loans but you don't qualify for grants. So you want to double check with your school which part of fin aid don't you qualify for.

In this era of budget crunches and cut backs I had to attend 3 different schools in order to complete my prereqs. Each school told me that I did not qualify for fin aid because of my postbaccalaureate status. But I had to tell each one, "I am not asking for grants, I am applying for loans ONLY." Then each school had their own way of handling it. Two of the schools asked that I complete what is called an SAP (Satisfactory Academic Progress) Appeal. So I went online and look and some sample SAP Appeals, wrote the letter directly to the Director of Fin Aid. I got approved and I was able to get my federal loans.

I don't have any experience with private loans because I always qualified for federal loans. I really think you can get federal loan but you may have to do more assessing of your schools policy.

Hope this helps.

I have a bachelors degree and I have been informed by all the nursing schools (community college ADN programs) that I do not qualify for any government financial aid/student loans due to my BA. I can however get private student loans through Wells Fargo or Sallie Mae. Does anyone have any experience with private student loans? Advice? Which bank is better? How do private differ from government student loans? Any input from students who have had to go the private route would be much appreciated!! Thanks!
Specializes in Forensic Psych.
I had the same problem.

Even though you have a Bachelor's degree you still qualify for loans but you don't qualify for grants. So you want to double check with your school which part of fin aid don't you qualify for.

In this era of budget crunches and cut backs I had to attend 3 different schools in order to complete my prereqs. Each school told me that I did not qualify for fin aid because of my postbaccalaureate status. But I had to tell each one, "I am not asking for grants, I am applying for loans ONLY." Then each school had their own way of handling it. Two of the schools asked that I complete what is called an SAP (Satisfactory Academic Progress) Appeal. So I went online and look and some sample SAP Appeals, wrote the letter directly to the Director of Fin Aid. I got approved and I was able to get my federal loans.

I don't have any experience with private loans because I always qualified for federal loans. I really think you can get federal loan but you may have to do more assessing of your schools policy.

Hope this helps.

SAP isn't about having a bachelor 's degree. It's about moving forward. You have to pass the majority of classes. You have to complete the majority of your classes without dropping. And you have to graduate and stop taking out financial aid at some point. If you don't, you qualify for nothing.

Part of the "moving forward," means that once you have 150% of the credits required to graduate from your degree program, you can no longer take out loans or grants. My ADN is 75 credits, which means anyone who has over 112 credits cannot qualify, bachelors degree or not.

The idea is that there isn't enough money to pay for people who are working on their 8th bachelors degree b

As you experienced, you can appeal, and some schools have leniency. Others don't. Some will clear you if you make an academic plan and stick to it. Where I worked, every appeal for SAP was denied. It used to be a lot easier, but the Feds are cracking down.

Sometimes "moving forward" is going back to school. After the recession, there are a lot of people going back to school (especially nursing school) who have Bachelor's. Coincidentally, graduating with a degree and taking additional classes for your pre-reqs kinda puts you over the required credits. I don't work in the financial aid office, and I don't claim to know the ins and outs, I was just sharing my experience and what worked for me.

Everyone is not trying to abuse the system. :notworthy:

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