About paying off student loans

Nurses General Nursing

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I completely get the impossibility of paying off 200K for an expensive non marketable degree and not being able to find a job, but I'm not fully understanding the issue with paying off a moderate loan when hired after graduation.

Comparing it to my loan, I graduated with $9,500 in debt and was hired at $10.50/hr. That creeped up of course but I initially made less than 25K/year. Compared to 104K now, that was very little income.

I was the sole earner, paid my rent, had a new but modest car, paid for my two kids (didn't even have maternity benefits on the first (the health insurance industry has never been a bed of roses), had a couple of horses and still paid off my loans in 10 years.

What I don't get is the primary reason why that doesn't work the same for anyone that graduates with student debt that is roughly half of their annual income these days.

I'm sure interest plays a part, but what else?

Do people just resent having to pay them back? They're cramping the new lifestyle norm?

Can someone explain this to me? Am I being dense?

And what kind of job can you get with a high school education that would allow you to do that, especially in places with a high cost of living, like California? Don't forget that if you're under 25, all financial aid is based on your parents' income and assets, even if you don't live with them and they provide no financial support.
so, if they go to college, their living expenses are miraculously covered? by what entity? try checking you immigrant community, they live multiple persons in a household, for exactly this reason. no excuses, unless you have kids.
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Specializes in Family Nurse Practitioner.
And what kind of job can you get with a high school education that would allow you to do that, especially in places with a high cost of living, like California? Don't forget that if you're under 25, all financial aid is based on your parents' income and assets, even if you don't live with them and they provide no financial support.

I actually made a decent income as a cocktail waitress and bartender in my early 20s and then as a retail manager with nothing but my high school diploma. I also lived with between 3-5 roommates in dumpy apartments. Interestingly enough I made too much to qualify for any grants and would have had to get loans if I hadn't saved the money for my community college tuition.

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Specializes in Emergency, Trauma, Critical Care.

It's the private loans that screw you.

I was one who didn't do my homework (23 year old that didn't know jack), took out a 35k loan. In the year I finished nursing school. It had added on 10k in interest...now a 45k loan.

I put 8k on it over the course of a year in extra payments. Their policy was to "apply it to future interest." And they would not apply it to the principal. That's sallie mae for you. So....the loan was then 42k....not much of a drop for all that extra money.

My grandma gave me a personal loan where I paid it off and I pay her monthly.

If I could go back in a time. I would have never taken out that loan. I lost a lot of sleep when I was trying to pay it off.

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Specializes in Family Nurse Practitioner.
It's the private loans that screw you.

I was one who didn't do my homework (23 year old that didn't know jack), took out a 35k loan. In the year I finished nursing school. It had added on 10k in interest...now a 45k loan.

I put 8k on it over the course of a year in extra payments. Their policy was to "apply it to future interest." And they would not apply it to the principal. That's sallie mae for you. So....the loan was then 42k....not much of a drop for all that extra money.

My grandma gave me a personal loan where I paid it off and I pay her monthly.

If I could go back in a time. I would have never taken out that loan. I lost a lot of sleep when I was trying to pay it off.

Thanks for sharing your story. I can't imagine how frustrating the "future interest" caveat must have been. What I really appreciate about your situation is that you describe it realistically and paid off your debt without blame. Kudos.

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Interestingly enough I made too much to qualify for any grants and would have had to get loans if I hadn't saved the money for my community college tuition.

Cliff effects are a &$*!#. Wife and I are facing a similar circumstance right now. If we make $1 over a certain amount, our childcare cost goes from $480 to $1120 a month.

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It's the private loans that screw you.

I was one who didn't do my homework (23 year old that didn't know jack), took out a 35k loan. In the year I finished nursing school. It had added on 10k in interest...now a 45k loan.

I put 8k on it over the course of a year in extra payments. Their policy was to "apply it to future interest." And they would not apply it to the principal. That's sallie mae for you. So....the loan was then 42k....not much of a drop for all that extra money.

My grandma gave me a personal loan where I paid it off and I pay her monthly.

If I could go back in a time. I would have never taken out that loan. I lost a lot of sleep when I was trying to pay it off.

It added 10K before you even graduated?! My old Sallie Mae didn't start accruing interest until approx 6 mos after graduation.

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Specializes in OR, Nursing Professional Development.
It added 10K before you even graduated?! My old Sallie Mae didn't start accruing interest until approx 6 mos after graduation.

And that is why students accepting loans need to know the difference between subsidized and unsubsidized loans. Not accruing interest while in school can be a big help.

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While I think you make a great point about paying them off early why on earth would you even consider consolidating at a higher interest rate?

I haven't consolidated and have no immediate plans to.

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It's the private loans that screw you.

I was one who didn't do my homework (23 year old that didn't know jack), took out a 35k loan. In the year I finished nursing school. It had added on 10k in interest...now a 45k loan.

I put 8k on it over the course of a year in extra payments. Their policy was to "apply it to future interest." And they would not apply it to the principal. That's sallie mae for you. So....the loan was then 42k....not much of a drop for all that extra money.

My grandma gave me a personal loan where I paid it off and I pay her monthly.

If I could go back in a time. I would have never taken out that loan. I lost a lot of sleep when I was trying to pay it off.

I finished an ABSN in 2012. My Previous degree was completed in 2001. I had $16,000 in debt from that first degree that I was paying $157/,month on. It wasn't killing me in the slightest. I made about $33,000/year had a decent car and had my own apartment (west coast). I had a career for 9 years, hated it, decided to be a nurse. That was the only time I had my loans in forebarence. I worked part time through pre-req's and moved back in with my parents (30 year old living at home? Hot:)) and did my ABSN program in which I could not work. I mean I literally was not allowed to, they made it very clear that you were not allowed to work during the program. I DID take student loans for my nursing program because I used most of the money I made in 9 years to pay off everything else in my life, per a finanancial advisor (my stupid student credit card debt, my car, and general savings account that always had about $10k in it).

Once I was finally a nurse, my final bill was added to the original $16k and now I owe about $35,000. It sucks, but I did pay for my own books, uniforms and some supplies in cash so it could have been worse. I was already fast approaching mid-30's and did not want to do a 2 year part time program.

So at $35,000 in debt, I make $300 payments a month. All my loans were federal. I didn't know MUCH about borrowing when I was 18 but I KNEW not to do a private loan..EVER!!! I heard horror stories about that mess! I can't believe when I hear people talk about student loan payments in the $1000's!!! I mean, how?? MY GOD! I would scrub myself with lye and CRY all day long in the shower if that were my payment. I want to believe someone didn't know that this was the deal when they signed on the dotted line, but I don't know. I do know that any ideas of an MSN, DNP or PhD are dashed, as I refuse to go back and accrue any more school debt. Most of the people I graduated with are now applying for NP and CRNA schools and all and I am happy as a clam in PACU working my 3 days with a little call. I just can't even imagine more debt. I bought a house, still have my old SUV (which, admittedly, is on her last legs and will be leaving me soon) and my credit score is impeccable. SO I have made it through the other side and here to say, if you are like me and content to pay just what you owe and on time, life will not come crashing down on you. I will be the first to say that my student loans being paid off is not my first priority at all. When my roof is failing and needs to be replaced, that is my first priority, and that is why I keep my savings cash on hand. When I move back to the west coast, make a lot more money and am in the same financial situation, I will most likely throw and extra $250 or so to my payment. But for now? No.

I feel like Navient (formerly Sally mae) will be showing up at my funeral throwing my final payment coupon on my urn--and they will get "minimum due".

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