Financial Aid and $165,000.00 debt

BrendanO, MSN, RN · Sep 20, 2016

I would recommend you speak to the Financial Aid office at Chamberlain. Have you used the FAFSA estimator on the Dept. of Ed website? That might be helpful.

In general, your current eligibility for aid depends on the type of loans your existing debt came from and what the original amounts borrowed were, your income last tax year (2015), and your current financial assets and liabilities. There are lifetime limits on all subsidized and unsubsidized Federal loan programs (including Perkins and Stafford programs), and there are also limits on the number of years you can borrow under those programs (e.g. for a 4-year undergrad program, you can only borrow for 6 years). If you already have a Batchelor's degree, you are not eligible for most Federal grants.

The limit for private loans depends on the lender, but you're already towards the top end of what many will allow.

If you already have a Batchelor's degree, have you considered direct-entry MSN programs instead? These would change your loan eligibility (there are different lifetime caps for undergrad vs. grad study). You'd also finish faster (2 years vs. 3) and your total cost of attendance might end up being lower.

Good luck!

britta89 · Sep 20, 2016

I'm in a slightly similar situation. I earned my bachelor's degree in biology, and I have about $35k worth of debt.

The route I'm taking to save money and time is completing the concurrent/dual enrollment program (CEP) through a community college. I'll basically have my BSN after 2.5 years in the program. I'd be taking the clinicals through the community college while completing the university coursework online. It might be worth it for you to see if a similar program is offered in your county. I'm only going to pay about $12k for 2.5 years which is very little compared to the amount I'd be paying at either a public or private university.

elkpark · Sep 20, 2016

Taking on additional student loan debt when you already owe $165k sounds like a really bad idea to me. There are few nursing jobs that are going to pay enough to enable you to pay off that debt and also live any kind of reasonable life, and most of the (comparatively) few jobs that would require even more schooling.

Pdxstudent · Sep 20, 2016

That's a crazy amount of student loan debt to have not mention adding to it! I am also a second degree student and I had the option to go to a well known university which would have cost an arm and a leg so I chose a local community college program and then I'll bridge over to the university my last year to get my BSN. That will save me thousands in additional loans. Do you have any cheaper options?? In my opinion I would do some thorough research and go with the cheapest option available given your situation. Or put it off for a couple years and work hard to save up enough money to help you through it.

verene, MSN · Sep 20, 2016

That is a LOT of debt. I would be very leery of taking on more in your position until you are able to pay down some of what you already have. Nursing pays reasonably well, but not well enough to quickly pay down 100K+ in loans (presumably 200K+ if you take out loans for chamberlain and accrue interest on that as well).

As a second career nursing student I am taking out loans to pay for school. However, I had no debt going into the program and am attending a state university. Based on local RN wages vs. cost of living I can very easily pay off my loans in 5 years. If I'm willing to commit to a frugal life-style and be aggressive in repayment, I can get that time down to just under 2 years.

I'd advise you to do a lot of research into you options of schooling, including comparative costs. Also go through your past loans, have you already maxed out on federal loans for education? Will your current loans continue to accrue interest while you are in school and do you have to continue making payments on them while in school? Do you qualify for private loans? What would the interest rates on those loans look like? How much would you end up paying over the life time of the loan? What are nursing salaries like in your area or areas you are likely to work? What is cost of living? Use a loan calculator to figure out monthly repayment. How much of your nursing salary would have to go towards paying down loans? What would your life style look like on what is left? Could you afford to live where and how you want to? How much would you ultimately end up paying in interest? Is the program you are going to worth that amount in interest down the line? How much might you save (or not) over your life time if you went elsewhere?

Livelaughlove72 · Sep 20, 2016

Hi there! I grew up in Katy TX but moved away in the late 80s.

I agree with the others that is ALOT of student loan debt. How much of that is federal and how much is private? Assuming you are talking about private loans, they are based on your credit report and rating, and most lenders will not loan to you after you have accumulated a certain amount of student debt.

If you aren't sure how much you've used in federal loans, check http://www.nslds.ed.gov to see how much of it is in federal loans. If you are independent and have used less than $57,500 (or $31,000 if you are dependent) in federal loans, please use your remaining eligibility first because you will pay less interest and have some government loan benefits.

I would personally look at paying off a large amount of that debt before pursuing a second career. If that isn't an option, look at scholarship opportunities as if you were looking for a job. And of course complete the FAFSA, which will open soon on 10/1/16.

Chamberlain also has a great area on their website with suggested outside scholarships. Definitely give it a look. Good luck!

secondlifenurse, MSN, RN · Sep 21, 2016

Ouch. As the above ^^^ posters noted, that is truly a LOT of debt. Honestly, that's more debt that I've ever had, even when I had a mortgage, car payment, *and* student loans combined. Were I you, I would absolutely *not* accrue more debt through an expensive nursing program. Truthfully, all told that may end up feeling like a debt you could never dig yourself out of.

Instead, look at a local community college program, if you really do want to change careers. In many places you can go start to finish for $7-8,000. Have a community college do a transcript review of your former degrees/courses taken to eliminate duplicating anything.

Another option is to use that business degree for a few years and pay down your debt so that it is significantly reduced and *then* go back to school at a community college.

Best of luck :)

Mavrick, BSN, RN · Sep 21, 2016

thats with interest that has acrued through the years.
I want to get my BSN with Chamberlain and know there program is expensive, but at this point its my only choice. Is it possible to get additional loans?

You just keep making one bad decision after another.

Your business degree led to your not only not being unable to pay down your loan but now have additional debt of interest "through the years"?

Chamberlain is not your "only choice". Everyone knows these for-profit schools prey on the desperate and uninformed. You are either unqualified or too impatient to wait for a cheaper program.

As stated above though, a typical nurses' salary will not pay for the massive debt you have already accumulated.

I would also disagree with a plan to cheat the system by going for an advanced degree that allows another ill-prepared MSN degree-holder to walk the earth.

Buyer beware, BSN · Sep 22, 2016

You just keep making one bad decision after another.
Your business degree led to your not only not being unable to pay down your loan but now have additional debt of interest "through the years"?
Chamberlain is not your "only choice". Everyone knows these for-profit schools prey on the desperate and uninformed. You are either unqualified or too impatient to wait for a cheaper program.
As stated above though, a typical nurses' salary will not pay for the massive debt you have already accumulated.
I would also disagree with a plan to cheat the system by going for an advanced degree that allows another ill-prepared MSN degree-holder to walk the earth.

Den, there's no solace in what I'm going to say but you have to know there are many, in the tens of thousands, at least, who are in what I call terminal college loan armageddon. As you may know, many of those students have gone to a variety of post secondary colleges but it seems as though the for-profits specialize in creating what has been called debt peonage extraordinaire.

So, I worked some numbers: I'll use 3.6% yearly simple interest assuming that's the present Department of Education Title IV loan rate on your outstanding debt. So roughly.

$165,000 x 10 years (120 months) x 3.6% = $1,639.91/month

or

$165,000 x 20 years (240 months) x 3.6% = 965.43/month

Partial solution: Yes, you have to do the nursing thing on the cheap. No Chamberlain. That will tack on another $100,000. That would be self-defeating. Yes, community college. Get an ADN and later BSN if feasible and you feel like it.

Student loans backed by the DoED can not be discharged through bankruptcy. You could make a deal with your loan servicing entity through the DoED to see if you're eligible for their income based payment plan among others they offer. The problem is that no matter how you pay this money back, interest will accrue. But, if you do nothing, regarding payment for whatever reason, the loan will be forgiven (so they say) in 20-25 years. The problem with that is then the IRS steps in and issues you a 1099 informing you that the balance on the forgiven loan is now considered earned income and you have to pay taxes on the outstanding balance. If you're on SS, they will take a percentage out of your monthly check.

So there is no real solution except to pay what you can and have the small satisfaction that you are doing what you can to keep this wolf from your door.

secondlifenurse, MSN, RN · Sep 22, 2016

I would also disagree with a plan to cheat the system by going for an advanced degree that allows another ill-prepared MSN degree-holder to walk the earth.

Luckily, this statement isn't a generalization. :facepalm:

For all kinds of people and their situations, the direct-entry MSN is a good way to enter the field of nursing; however, the issue at hand here for Den1978 is whether or not it's wise to take on further debt in addition to the crushing $165k.

*If* s/he wanted to change careers and nursing is definitely the desired path, then significantly paying down debt first and choosing a less expensive means to get to the degree that allows her/him to sit for the NCLEX would be wise.

FNP2bMRL3 · Sep 23, 2016

One option is to take 6 hours for 1 semester and then take 9 months off repeatedly for the rest of your life so that your loans are continually in deferment......... When you are 65 what the hell can they do to you if you can't pay? By then the U.S. will be either socialist or communist or taken over by NATO anyway and all our education will be free, right? Screw it......Do what makes you happy now.