Published May 2, 2004
I've seen posts in the past about new grad contracts that have loan pay back options. To all of you getting ready to graduate or already out, how have you found these contracts? Do groups come to your school and try to wine and dine you and offer you contracts while you are in school? Or do you just search on the web to find these kinds of jobs? Just wondering how to go about finding these options. Thanks in advance for your input.
So, is it a secret or does nobody real know about these options?
The clinical site I am currently at offered me one.
You should begin pursuing these offers, by calling or writing to the groups you are interested in joining. Many of these offers, only exist because individuals pursued them.
You will occasionally see ads and offers in the back of the AANA bulletin - something along the lines of "new grads welcome - ask about tuition reimbursement/stipend program".
I agree with Nilepoc. It isn't as if groups are knocking down our doors to sign us up. There tends to be initiation on the part of the student to find these programs. What seems to be happening in the cases I know of are situations in which:
1. the student is in clinicals at the site, and it seems a good fit, so an offer is extended
2. the student has a prior relationship with a group or hospital, and approaches them about a contract
thanks for the responses. i was just curious if it was like undergrad. we had hospitals come to our school all of the time trying to recruit us and offered us all kinds of incentives. guess i will have to work harder at it this time but it will be worth it.
Coug - i started down this route...and spoke to many wise CNRA's who did accept contracts...and their advice was don't. they gave multiple reasons - most of which were very common sense - like how do you know what type of anesthesia you want to do until you have had the opportunity to do it all?? (which i haven't) - they also said that they all hated the places and eventually bought out their contracts to move on....so just be careful.
thanks for the note. i was looking for a contract while in school. just wondering about how to find one after graduating. i know i don't know exactly what i want after graduation yet. but i wouldn't mind finding a hospital that would pay my loans off as well as a salary for a two year contract. but i know from nursing, the best offers normally come from the places people don't want to work. anyway, thanks again.
I know from talking to friends as the MCG program, that they start getting most of the offers at the end of the first year. That is when the "free weekends", dinners, and parties start for serious recruiting. They have told me that there is a lot of information being exchanged but not too much pressure to sign on the dotted line.
This has been discussed quite a bit in the past and I would encourage you to do a search for these so we don't continue repeating everything.
To try and keep it short -
I too wanted a "contract" from a group who would help pay my school costs and a stipend while attending school. I found it and was offered "the deal". It was a LOUSY DEAL and I turned it down without hesitation. I did what many people do - realize that the "burger today - for X # of years of service tomorrow at a reduced wage" is usually not the "deal" that you're going to be happy with!
I toughed it out through school with loans and kept the spending down. During the last year I started "shopping the deal" with various groups. Actually, my spouse did most of the real "homework" - which is interesting when you think about it, he's simply very good at this type of thing. When opportunites looked good, we'd schedule an interview and make the trip. We inked a deal about 6 months before graduation and it has been a roller-coaster ride ever since!
I am SO PLEASED with where I landed and the practice I am in today! Also, The money is about 2 1/3 times more than what I was offered by the group initially. The loans? I owe plenty, but it's not a problem. Consolidate them for about 2-3% over anywhere from 10-30 years! Let's see here... can I afford this? The interest is deductible (if you do your homework right - or have a good CPA) and voila! Life is "sweeeeeeet!" :)
PS - PLEASE don't e-mail me asking for the stipend group - or my school for that matter - I wouldn't wish either of them on anyone!
sleepy thanks but this actual topic hasn't been discussed all that much. at least as far as groups offering payback contracts upon graduation. i've been an active daily member for over 2 years and would have known if this was a popular subject. however, thanks for your help.
CougRN - I stand corrected!
I am sorry - you are right! We have discussed "financing" school to quite a degree, but not negotiating anesthesia groups repaying school loans. I made the simple mistake of reasoning ("deductive"?) that since it is merely X # of $$$$ to be paid to the individual either way, whether in the form of sign-on bonus or school loan repayment, what is the difference?
You are correct. School loan repayment options are a separate matter. Now that I think about it... when I brought up the very same matter with the group I eventually signed with, they simply smiled and said, "We took that into consideration when we decided on the sign-on bonus amount." In my case it was a decent amount of money and I "got the point".
My reasoning is simple:
WHY would you be in such a hurry to pay off government backed school loans (and even those loans not govt backed)? What is the point other than for you to be able to say, "I paid off all of my school loans 2 years after graduation" or something similar? I love the idea of being debt free, I assure you. I am an individual who paid off our home 1 1/2 years after we purchased it so I'm not a nit-wit when it comes to conservative financial management. Still, I fail to see the value of paying off school loans with $$$ that you would otherwise put to use in what I consider to be far superior methods such as:
1 - establishing an "emergency cash fund"
2 - $$$ for downpayment on a home (which tends to go UP in value)
3 - paying off some of the higher % rate loans & credit cards you may have accumulated while in school (do ANYTHING to get through, right?!?)
4 - investing those same $$$$ in areas that tend to really appreciate in value over time
Merely "saving interest costs" on school loans to me is like shooting yourself in the foot so you can run faster! What's the point? You should be able to deduct the interest on those school loans for the foreseable future off of your taxes if you "do your homework" or hire a sharp CPA (I can refer one if you need him). You can take up to 30 years to pay them off - all the while deducting the interest off of your taxes and using the extra cash to build up your investments and make your net worth grow.
Other than the "personal pride" issue of being able to say, "I paid off all of my school loans!" will someone please show me the "smart money" reason for doing so? At least please answer me this one question: Would you rather have $50k in school loans paid off in the first 3 years of your after-school life as a CRNA or have say $25k in cash/money market as an emergency fund with the other $25k invested in a home that may be appreciating 10% a year? Let's say you're making $150k out of school and you purchase a home for $250k with only 10% down. 3 years later it is probably worth at least $330k. You're now $80k ahead in equity in the house and you still have at least $25k in cash plus you deduct the % from your taxes which in effect means Uncle Sam actually "subsidizes" your interest costs to the tune of what - 28%???
The bottom line? Which would you rather do:
A - Save that $4,500 ($1,500 per year) on interest costs for your $50k school loans at say 3% interest? Or
B - Go ahead $55k (original $25k + $25k downpayment still there plus $55k in equity growth in the home) ????? That's about $50k difference without doing anything "extravagant" financially like investing in high risk options.
Please show me a better plan. I would LOVE to hear better ideas! I am being sincere - please give me some better insight into financial planning & management that I haven't thought of with regard to this matter!
That should pretty much explain my thinking on the matter. To me, trying to get an anesthesia group to pay off some of your school loans is simply not "smart" as far as increasing your net worth. Again, I am always eager to learn more and would be very grateful for any and all others to enlighten me on why or how paying these school loans off with sign-on bonus $$$ could be a good move.
Sleeepy (who sleeeeps very well watching the bank account/investment portfolio growing as the school loans are slowly being paid off)
Hey thanks sleepy. I hadn't really thought that this much about it. I was just thinking, boy it would be nice if someone else paid my loans for me. But I get your thinking and will keep that in mind. I appreciate your post and ideas.
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