what if you graduate without student loans?

U.S.A. Missouri

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I've heard a lot about how most hospitals in the Saint Louis area will pay back your student loans while you work for them. But what if you don't have any student loans? Is there any other incentives they offer for people who don't need their loans payed off (i.e. bigger sign on bonus or something like that) or do you just lose that benefit?

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Disclaimer: I'm not in Missouri. But my understanding is that you can take a retroactive student loan; i.e., if you graduate next December, you take out a loan for the 2008-2009 school year to reimburse yourself. Then your employer can pay off the loan.

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Specializes in Nursing Professional Development.

I think this is an excellent question. One of the biggest problems I have with some programs is that they compensate those people who took out big loans for their education more than people who did not.

So, if a person was irresponsible with their money and spent it on vacations and fancy cars -- but borrowed to pay for school -- then they will be bailed out by an employer. But a person who scrimps and saves and works their way through school gets nothing. ... But each nurse does the same work for the hospital. That's not fair.

I'm not saying that eveyone who takes out student loans wasted their money, etc. I took out some loans myself. I'm just saying that there are some people who manage their money (and their life choices) poorly and then expect an employer to bail them out of the mess they got themselves into. While the people who work hard and manage things carefully and well get little or no help.

My idea of a good program would be one in which the employer would give "educational dollars" to everyone regardless of need as a part of their benefit package. People who had student loans could use them to pay back their loans. Those with no loans could use those dollars to pay for additional schooling, conferences, certification, etc. Then everyone would be compensated equally for the same work.

Does anyone know of a place that does something like that?

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Specializes in Labor and Delivery.

I agree that some people out there may have taken out student loans and spent their money on something else like expensive things. I am finishing up my first second semester. I am 19 and will have to take out many student loans in order to get my degree. My parents are not paying anything toward my schooling, but this is not stopping me. Knowing that i might be able to find a job to help pay them back gives me some hope. I do think though there should be other incentives for people without student loans. However and i am not trying to be mean or even have a pity party for myself but my mom makes under 25k and my dad is not in the picture. I did not receive any financial aid because i worked my senior year in high school and made about 10k. the hours i worked in high school there is no way i could work those now. I will not let my financial status get in the way of becoming a nurse. Be glad you have no student loans. And im sorry for ranting.

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I've wondered about this too...We are scrimping and paying for my education as we go. I will have no student loans(happily!). I think the next time I talk to a recruiter I am going to ask..."well tuition loan repayment is great...but what if you are in the lucky position of having no loans, are you compensated in some other way or do you just lose the benefit?". If I find the answer I will post it. If anyone else knows the answer please post! Thanks!

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I've wondered about this too...We are scrimping and paying for my education as we go. I will have no student loans(happily!). I think the next time I talk to a recruiter I am going to ask..."well tuition loan repayment is great...but what if you are in the lucky position of having no loans, are you compensated in some other way or do you just lose the benefit?". If I find the answer I will post it. If anyone else knows the answer please post! Thanks!

Thanks, I am in a position where I could pay for school if I wanted to but it seems like I should take out loans anyway if there is no other incentives. Let me know if you ever come across an answer, I would really appreciate it. I'm still new to nursing school so talking to recruiters isn't something that will be happening to me for awhile I guess. I didn't want this post to turn into a rant, I just wanted to see if anyone knew other incentives. Thanks again!

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Well, if you think about it, your benefit of not taking out student loans is that you don't pay the interest & service fees on them. No matter what people get in terms of tuition reimbursement from employers, it never pays off the whole balance. They are still responsible for most of the principal and interest. By not taking out loans you have more disposable income with which to invest and reap the benefits of compounded interest. That can't be beat with any tuition reimbursement.

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That is true. So does the hospital pay the loans directly or a check comes to you? I don't have any. I'm glad someone asked this questions because I wanted to know.

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That is true. So does the hospital pay the loans directly or a check comes to you? I don't have any. I'm glad someone asked this questions because I wanted to know.

I believe the check comes to the employee, since loans are in the employee's name. In the hospitals I've seen, the most offered is $4,000 per year for three years, so you max out at $12,000.

I have heard of schools that offer tuition reimbursement and tuition assistance. So for those who want to continue onto a BSN completion degree or Master's, the hospital will help them (with X amount of years in work commitment of course).

Anyway, to all those without student loans, count your lucky stars.

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Well, if you think about it, your benefit of not taking out student loans is that you don't pay the interest & service fees on them. No matter what people get in terms of tuition reimbursement from employers, it never pays off the whole balance. They are still responsible for most of the principal and interest. By not taking out loans you have more disposable income with which to invest and reap the benefits of compounded interest. That can't be beat with any tuition reimbursement.

i decided to take out loans even though i didnt need them. i just took out the loans that did not charge interest while I was in school. so I pay a service fee of like 25 bucks per year and am able to keep the money i would have paid to the school otherwise and make a 3% interest on it in my bank account. so not only am i not paying interest on the loans, im making interest by keeping the money in my bank account. and im not taking out massive amounts of loans either, i should graduate with less than 10000 since i only took the loans offered without interest so whatever company i work for should be able to pay all that back for me within 2 or 3 years about. and i figure if for whatever reason there is any snag in my plan after i graduate, i just pay them all off myself anyway and im just out the 50 bucks or so i paid for service fees. but like i said, im making interest in the bank anyway, so either way im ahead.

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That's a very good idea.

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Well I have an answer. I just accepted a Graduate Nurse position to start in January. The first thing the recruiter pulled out at my interview was the "And one of our popular benefits is tuition loan reimbursment. We will reimburse up to $12,000 of your student loans!!"....I explained that I have no student loans. "Oh...well our other benefits include...". I then asked if I was entitled to anything else since I wasnt taking advantage of the student loan reimbursement...like maybe a bigger sign on bonus?"...The answer: "No, sorry. It's just a benefit your not eligible for." I figured it didnt hurt to ask!

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