Financial Aid Advice?

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hi,

i'm starting an accerlerated BSN program this summer, which means I'll quit working. my spouse will continue working, so we'll still have money coming in, which should sustain us through the 15 months of the program (we really won't have problems paying bills and such on one salary). but, we have a large emergency fund that we've been preparing for my eventual departure from the workforce, and we could, theoretically, pay for my schooling out of this fund, but i applied for loans anyway, and i've been granted several thousand dollars in unsubsidized stafford loans. so my question is, should i take them? it would give me some piece of mind knowing that we still have a pristine emergency fund in place, and i've heard of new hires getting their loans paid off as a sort of "signing bonus" after graduation.

so, what do you think. long and short: i have loans available, but don't NEED them to pay for school. should i take them and hope a future employer will pay them back when i graduate and get a job, or is that a myth to begin with?

thanks

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It sounds like you are I are in the same exact situation. We chose not to accept our loan offers from last years financial aid but this upcoming school year we have decided to take the loans for emergency purposes. It can't hurt to take out a loan. You don't have to spend it, or all of it anyway. You did say that you have saved an emergency fund for you leaving the workforce. I don't think you should touch that. Many people these days aren't lucky enough to have an emergency fund and you should hang on to it for dear life.

I really know nothing on the subject but I find it hard to believe that in this economy that any employer would pay off your school loans. I think it has happened before but may be a thing of the past once we all graduate. I wouldn't be optimistic about it anyhow.

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i think there are federal forgiveness programs available out there in exchange for working in a certain area or something, but i haven't yet had the time to do much research on the subject.

yes, we're very lucky to have a decent emergency fund and relatively few bills and no kids to worry about. it sure would be nice to graduate and still have that in place (we really worked hard to put it in place over the last two years), and at worst, if i need to i suppose i could pay off the loans from savings as soon as i get out and get employed.

let's cross our fingers that the economy will be in recovery by the time we graduate.

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The times of paying off loans as a "sign-on" bonus are history now. Some hospitals are offering loan payoff as a retention bonus (at the 12-month, 24-month, 36-month, etc) aniversary.

It is all a factor of economics --- hospitals payed sign-on bonuses when there were more jobs than new grads. Now it is the opposite. Think of supply and demand. The supply of new grads exceeds the number of new grad positions in most parts of the country this year.

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i had always heard these "bonuses" were essentially the retention type that you're talking about. like, they would pay off loans if you agreed to work for two years or whatever, but they would only pay at the end of the term. i guess we're really talking about the same thing.

my interpretation is that this is all very fluid, in terms of hiring and all the related issues that go with that. i'm just hoping in a more hospitable, stable economic environment that there will be a return to "boom times" for nurses. i won't be in the job market until late 2010, so hopefully the landscape will have improved by then.

thanks for the wisdom, UVA Grad Nursing.

does anyone know anything about this federal loan repayment program?

http://bhpr.hrsa.gov/nursing/loanrepay.htm

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I dont think u have to pay for stafford loans including the interest (doesnt start to accrue) until you graduate. So u can take the loans at no cost really (unless u feel like being a good citizen so other needy students get loans) and pay it off at the end of ur program with no interest accrued. It could be nice to have some of that emergency funds on hand just in case. But then again I would also like to have access to stafford loans....and I have no emergency funds. So...your choice.:D

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Hi fanshawe,

Are you doing TWU's fast track too? They have also offered me loans (and a grant:yeah:), both subsidized and unsubsidized.

Actually Agrippa, the difference between them is that the government pays the interest on your subsidized loans while you are enrolled at least half time in school. But with unsubsidized loans, they don't pay the interest while you are in school. You do have the option of paying the interest on the unsubsidized loans while you are in school. You don't have to though. That will end up making the loan even more costly in the long run with the extra interest payments.

Anyway, I also have a little money squared away, not enough to pay for all the tuition, but I'm saving that for some living expenses and books. The maximum we can receive for the year in Stafford loans is $5500 subsidized and $7000 unsubsidized. The problem is that we need those loans to pay for three whole semesters instead of the traditional two. I think that's why they gave me a grant to help out. Anyway, once you accept the loans you go through the TG loans by web, complete the entrance loans counseling and then select a lender. I chose Chase but there were many choices. I hate to have to take out loans, but I'm going to pay them off ASAP once I graduate. I believe you don't have to start repaying until 6 months after graduation though.

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thanks for the advice and input agrippa. the loan i've been offered are unsubsidized, so the interest starts accruing as soon as i receive the money, but i don't have to make payments until i graduate.

youphemism,

yes, i'm also doing the twu fast track program.

i got a scholarship and the unsubsidized stafford loans i already mentioned. my inclination is to take it and just make the interest payments during school. if i can't find some way to get the loans forgiven, then i could theoretically use the emergrncy fund that we've saved to pay off the loans immediately upon graduating, but then i would still have the peace of mind of having that money there while i'm not working. this plan is, of course, contingent on me getting a job pretty soon after graduating.

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thanks for the advice and input agrippa. the loan i've been offered are unsubsidized, so the interest starts accruing as soon as i receive the money, but i don't have to make payments until i graduate.

youphemism,

yes, i'm also doing the twu fast track program.

i got a scholarship and the unsubsidized stafford loans i already mentioned. my inclination is to take it and just make the interest payments during school. if i can't find some way to get the loans forgiven, then i could theoretically use the emergrncy fund that we've saved to pay off the loans immediately upon graduating, but then i would still have the peace of mind of having that money there while i'm not working. this plan is, of course, contingent on me getting a job pretty soon after graduating.

Well u can still take the loan then take the money you saved and put that into bonds or a cd or something. Make your money work for you. That way the actual cost of borrowing the money may be worth the liquidity you have with your savings. If im paying 1-2% on a loan so I can hang onto my savings or even make them work for me like in an ING account, id do that.

Or you can let your loans available to others in need.:)

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Or you can let your loans available to others in need.:)

guilt trip!! :sniff:

just kidding, agrippa. i decided to take the loans and give back anything i don't actually need.

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