financing LNC and tax credit

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    Hello beloved resourceful nurses! It took hours to find this website and I can see I'll never leave.

    I have the loan application for VMI full course (VIP +) and was accepted for the financing however, I'm in a quandry understanding the different types of loans. I've always paid for my education so current students ( or parents of such) may be better informed.

    This Sallie Mae application that comes with VMI's course is not a "student loan" so therefore does not offer the great interest rate and the 6 months of 'no payments' I was hoping for. I was told on the phone by their staff that it was a Business Loan. I then spoke with other business owners who suggested I register my business and get the loan in the business name so as not to risk personal loss (or against my mortgage). Then the paperwork came in the mail. It states that it is actually an "Education Loan" and I'm approved at slightly over 9% interest.
    Upon speaking to my Financial Planner, he states I can only get tax credit for 20% of the loan,and that I cannot register this loan under a business name. He then referred me to a tax consultant (awaiting a call) to see if the marketing and materials can be divided out seperate from the seminar cost for tax purposes.

    I know this is no one's specialty here, but hear me out. I reviewed the Student Loans available in my state, and VMI is not a recognized school for funding. However when reviewing more about student loans in general, they states they are never more than 9%

    Perhaps someone can give me feedback on if they received a business loan and if it was beneficial. Perhaps you know some better avenues of finance I should pursue, or if practicing, were you able to deduct 100% of expenses on taxes?

    I feel very pressured by these unbearable deadlines. I was more than decided on VMI, but from simply requesting information to being pressured into a decision by a deadline may cause them to eliminate themselves. I want to make a truly sound decision. "Just do it" advise from Vickie (I have her book from the library) sounds great for risk taking, but not when finances are concerned.

    Thank-you in advance, Vidara, Missouri
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    Perhaps someone can give me feedback on if they received a business loan and if it was beneficial. Perhaps you know some better avenues of finance I should pursue, or if practicing, were you able to deduct 100% of expenses on taxes?
    Hello, Vidara

    I did not secure a business loan. I utilized a credit card to pay for my LNC education as well as getting started with my business. But, that's just me. Others do secure a small business loan to pay for these things. Not a thing wrong with that.


    I feel very pressured by these unbearable deadlines. I was more than decided on VMI, but from simply requesting information to being pressured into a decision by a deadline may cause them to eliminate themselves. I want to make a truly sound decision. "Just do it" advise from Vickie (I have her book from the library) sounds great for risk taking, but not when finances are concerned.
    I highly advise anyone NOT to make a decision under "pressure" by any organization. It's not wise to make the final decision this way. Please check out other avenues of LNC education and be well-informed before making that final decision to educate as LNC.

    Good luck.
    RN1989 likes this.
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    For the bulk of stuff I used a credit card "check" that had a very low interest rate until it was paid off - then don't use that card for anything until you pay off the "check". The other things have been put on a regular credit card with a great rate and reward points as well as taken out of the household budget as able.

    I didn't want to go with a loan because the interest rate was higher than my card and also you have a higher, fixed monthly payment. With a credit card, the minimum payment due each month is MUCH lower than a conventional loan but you can always pay more if you can. You may end up paying back more in interest over a long term with a credit card, but when you are on a budget and work hasn't taken off yet....the lower payments of the credit card keep you from defaulting on a higher monthly payment loan.

    Actually, the "just do it" advice from Vicki is very true. To set up a competitive LNC business these days requires a lot more money than people think. You have to be committed all the way to spending money that normally you would never spend in order to get the business off the ground. If you try to do it really cheap you will have a harder time competing in the marketplace and will be more apt to give up. Once you spend that chunk of money, it is a real incentive that THE BUSINESS WILL SUCCEED NO MATTER WHAT. When you are talking about this much money, you really have to decide to go all the way and "do it" or don't bother with it. You have to spend money to make money and that is a hard thing to swallow when you are unaccustomed to such risk taking.
    Last edit by RN1989 on Apr 27, '08
    KLKRN likes this.
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    I just finished the 6-day seminar this past week and I'd say every penny was money well spent. I got the Sallie Mae loan and my interest rate is less than 9%, which by the way was the interest on my student loan back in nursing school. I have a long time to pay back, so my payments are low.

    And what RN 1989 said, I totally agree.
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    Well, I have been very thoughtfully considering signing the loan papers, but have been busy pursuing information in other areas: calling the small business administration regarding business loans etc... They are offering a seminar to teach how to set up a business plan so that you can get a business loan. This seminar is a 1 day event for $50. My tax man states paying off w/ a business loan will make it all tax deductable.

    Just before I signed the Sallie Mae loan papers, I read the fine print and found that it is at a variable rate - liable to change -and over 15 years, I'm sure it will. Instead I applied for a 0% for 1 year credit card and received a nice credit limit. Set rate is 9.99% but no variable worries!

    Now I'm deciding what to not do. I had a higher bill w/the VIP + program. Can anyone respond to the VIP + program? I'm sure the advertising is great but I will be advertising with the best and perhaps it would be better for me to have more experience first. Surely they will cancel me out. Possibly as a new LNC my best offer would be my location.

    I'm considering getting only the VIP and apprenticeship. Saves me 2K in the beginning. Any input on the Apprenticeship? Sounds like that may be the most educational aspect (hands on) but with unlimited mentoring, maybe not necessary.

    Thank-you in advance, Vidara
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    I think that the apprenticeship is well worth it. It is more indepth and gives more detail on specific issues with reviewing and report writing. I think it gives a better background knowledge base and then if you still run into issues, go for the mentoring.

    The VIP+ gives advertising for 12 issues in a legal journal as well as the upgrades to your listing on the NACLNC website. Since I don't know what it costs to advertise in that particular journal, I don't know what kind of a deal this is. Although advertising anywhere is pretty expensive these days. You can get the upgrades to the NACLNC listing without getting the + system.

    I would say if you know how to advertise, and know where to look for the opportunities and are willing to invest the time in finding these advertising opportunities, then the + system might not be for you. If you aren't sure where to start, don't have the time yet to spend hours on the internet and phone doing demographic research, cost analysis and comparison, and writing up your advertisement blurbs, then the +system could be very valuable.

    Considering that most nurses don't have a lot of busines training, I think that the whole package deal helps a lot with getting them started and then once they see how things work, they have an easier time working off a pre-made model later on. Time is money and if it takes too long to do something you are unfamiliar with, spending a little extra to get stuff set up for you can pay off later.
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    I am a new CLNC (just found out I passed my cert. last week). I took the VMI + VIP and the apprenticeship in April of this year. Like you, I was hesitant to take the Sallie Mae loan-but I did and it seems to be working well for me. Just to let you know-the intrest rate is variable-which I was not happy with. However, my payment is about $124/month. I don't know about you finance situation-but my goal is to pay this loan off ASAP. For me this option was the best and just FYI-I took the homestudy and attended the seminar in Las Vegas-it was Phenomenal!! I don't regret taking the loan because now I'm on my way to where I want to be. Good Luck:spin:
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    Congratulations on your new CLNC, bairRN!!
    bairRN likes this.
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    Hey, I must have met you there, Bair! It was a great seminar. pm me and let me know how you're coming along!

    I did the home study before I went too. I really thought it was great, and I have no regrets, but I know that not everyone's situation is the same, so the way we went may not be what works for everyone. I think what's most important when choosing a way to go is that each person know the route they choose is the right one for them. But personally I don't think you can go wrong with VMI. I've already used the mentoring more than a couple times.
  13. 0
    So, you are newly CLNC, KLKRN??? Congrats to you, too!!


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