$100,000 in student loan debt?

Nurses General Nursing

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I keep reading about new nurses saddled with $100,000 worth of student loan debt. I'm curious about this. Are these students using their loans to live off of while they attend school or are they attending very expensive schools? You could almost buy a house for that amount. How common is that level of debt?

Specializes in M/S, Travel Nursing, Pulmonary.
I think people are confusing federal loans ,private loans and grant money. Federal loans (Stafford for example) have limits and 100k exceeds what you can get for an undergrad. Those limits are for everyone and the school doesn't "run out" of money to give, the loans are available to all eligible students. My taking out the max every year has no influence on someone else's ability to also get a loan.

There are a variety of private loans available that a financial aid office may help a student set up that don't have the same requirements or limits.

Grant money however, does run out but it's an entirely different beast. That's money that isn't paid back and is almost always based entirely on financial need.

Found a link for those curious about federal loans that has an easy to read chart regarding the different types. Just keep in mind that while you may not get 100k in federal loans, you certainly can get that much (or more) once you add in other loan sources available to students. http://studentaid.ed.gov/students/publications/student_guide/2008-2009/english/typesofFSA_loans.htm

Sure it has an effect. Not today, right now, but eventually it does. As you borrow the max. over and over needlessly, the powers that be that set the limits and requirements to qualify for said loans are going to take notice. They'll see people are borrowing not for school but to.................oh, say, go back to my former post about the 20somethings who have both Xbox and PS3 and have no job. They decide they dont like it and tighten the restrictions for getting the loan in hopes of avioding it happening again. I seem to remember an awful lot of students complaining about the restrictions when I was in school (cause, I come from lower middle income and hence for the most part so were my friends). The restrictions can get to the point where..........you dont own a car, rent an efficiency and work at Denny's on the weekends BUT YOU MAKE TOO MUCH.......cause of some clause about what your parents (who you barely see and certainly dont send you money) make or because an uncle sent you $500 as a gift. Those restrictions got there because of reckless borrowing.

And those private loans..........well, thats a step in the right direction towards being on the "I have 100K in debt but dont make enough to make my payments. Why?" side of this arguement.

Specializes in M/S, Travel Nursing, Pulmonary.
No one should have to incur $100,000 in debt for any degree. But not everyone equates education with a pay check or a credential. Some people incur heavy debt to attend a school that offers an excellent education -- along with a nursing degree -- because it will enhance their quality of life and leave the door open to greater opportunities in the future. Boston College, for example, comes to mind. There's a big difference between a four-year degree at BC and a two-year degree at a community college. Yes, we all sit for the same boards in the end. But not all of us go to college strictly to earn a nursing license. It's about the bigger picture, and it's an individual choice.

I actually get your meaning here. I got my ADN at a CC, and happen to understand that there is just............that little something four year colleges offer. I loved my time a my CC and met the best instructor I will ever meet there. But I do know there is just that...............something else........at a four year college. I attended Pitt for one semester and took english and some other courses. The english class at Pitt just.............had a depth to it that I didnt get at the CC. Thats why I want to go back to school for my BSN. Part of the reason anyway. But I'll do it in a reasonable/responsible manner.

Case in point, my first choice for school would be LaRoche. They have a very attractive RN to BSN program. The campus is outstanding, like something out of a Disney movie. But if it turns out I can not afford it, I'll go elsewhere. There is a limit to what I am willing to sacrifice to experience that nostalgia. Not fair to ask my wife to work OT just so I can appreciate the architecture of my college more.

Specializes in ICU.

My point was that not everyone goes to school only to earn an RN's license. Some go to attain an education that helps them to become well-rounded, broad-minded citizens, not only wage earners.

I get your point and it all sounds great in the written word on a message board, but in real life, people need to take account of their own situations and be realistic in how much "quality" education they can afford. I know this will chaffe some people the wrong way, but truth is, some people will come from backgrounds that have the financial "back up" support in the event that life happens (s/he can't work or looses significant income) and those massive student loans still have to be paid. These people can enjoy the college ride in a way you describe, but others must be more wise with their money. You may down play the whole "school to become wager earners" mentality, but it is why most people pursue college degrees. ***I'm not arguing agaisnt education or a reasonable price tag on quality education*** I'm suggesting people think twice before putting themselves in a large amount of debt for a RN program. Since this post IS about obtaing your RN and at what price, that is where I choose to focus my comments.

I think we can just agree to disagree. I personally think people have been a little oversold on what a valuable education is and isn't. If you want to be exposed to culture, travel to the country/city of interest and really learn about it. Feel your language art skills are inadequate? For the cost of one college english class, you can hire a private tutor and get hours of one-on-one interaction and then you will really see a difference. You can be a well rounded, educated citizen w/out the hefty tuition.

Sure it has an effect. Not today, right now, but eventually it does. As you borrow the max. over and over needlessly, the powers that be that set the limits and requirements to qualify for said loans are going to take notice.

You might check out the link I posted to help you understand the limits and requirements of financial need. If you choose to work at Denny's while going through school, have a good time, but it's your choice to lessen your financial need by doing so. If you choose to not work, your financial need is greater and thus you'd qualify for more loans. It's not "needlessly" borrowing when you have a financial need to do so.

And those private loans..........well, thats a step in the right direction towards being on the "I have 100K in debt but dont make enough to make my payments. Why?" side of this arguement.

Well if you can't make your payments, that's certainly a problem but that's not an argument I've seen in this thread. It mostly seems to be those who are appalled at that amount of debt with only an education to show for it versus those who understand how it happens. When I took out my loans, they told me how much my payments would be and what the interest rates were as well as my options for repayment. My eyes were wide open then and in hindsight I still feel it was the best choice for me. I traded experiences then for money now and I still feel I got the better end of that deal and don't regret it at all.

Nobody's saying loans are the right choice for everyone, just that they can be the right choice for some people.

Specializes in Cath Lab, OR, CPHN/SN, ER.
The recommended monthly payment to pay it off in 10 years is 620 dollars, and I would rather be pumping that into a savings account.

Check out Dave Ramsey- we started doing that in August of last year. We've paid off four debts and will be moving this weekend. Once we get settled, we'll be able to pay off a vehicle. We've also been able to save for my tuition so we're not going into debt to pay for my school.

I am currently going through the motions to get my ADN.....we have not borrowed one dime for it. If we can't pay for a class, I don't take it until I can. This fall it will get harder, but are doing our best to get by.....
Wonderful idea! Like I said before, we follow a modified Dave Ramsey system. We figure up how much tuition and books will be, and then divide that by the number of weeks until tuition is due. We then know how much money to go ahead and set aside each week. We actually put it into savings so it'll grow interest while we wait to use it.

I don't ask this to be critical; I am genuinely curious as to the mindset: Why would one incur hundreds of thousands of dollars in debt in order to go to an expensive private school, when public universities offer the same degree, the same credentials and the same NCLEX pass rate at a fraction of the price?

Same reason people buy $120 sneakers when they could buy $30 shoes instead.

Specializes in M/S, Travel Nursing, Pulmonary.
You might check out the link I posted to help you understand the limits and requirements of financial need. If you choose to work at Denny's while going through school, have a good time, but it's your choice to lessen your financial need by doing so. If you choose to not work, your financial need is greater and thus you'd qualify for more loans. It's not "needlessly" borrowing when you have a financial need to do so.

Well if you can't make your payments, that's certainly a problem but that's not an argument I've seen in this thread. It mostly seems to be those who are appalled at that amount of debt with only an education to show for it versus those who understand how it happens. When I took out my loans, they told me how much my payments would be and what the interest rates were as well as my options for repayment. My eyes were wide open then and in hindsight I still feel it was the best choice for me. I traded experiences then for money now and I still feel I got the better end of that deal and don't regret it at all.

Nobody's saying loans are the right choice for everyone, just that they can be the right choice for some people.

Teach me that quote thing. Everyone does it. I want to too.

So, it doesnt urk you a little that a simple weekend job (instead of being out partying or...........again, my example of the kids with a car loan's worth of home video games) makes one unqualified for education loans?

Thats backwards to me. Seems like the restrictions encourage...............abuse. Like the prefer you to overspend, rely on loans completely. Why punish someone who says "I'll work the weekends, spend less time out being social, but borrow less because I want things to be simpler after I graduate"? I dont get that philosophy at all.

Specializes in School Nursing.
check out dave ramsey- we started doing that in august of last year. we've paid off four debts and will be moving this weekend. once we get settled, we'll be able to pay off a vehicle. we've also been able to save for my tuition so we're not going into debt to pay for my school.

wonderful idea! like i said before, we follow a modified dave ramsey system. we figure up how much tuition and books will be, and then divide that by the number of weeks until tuition is due. we then know how much money to go ahead and set aside each week. we actually put it into savings so it'll grow interest while we wait to use it.

same reason people buy $120 sneakers when they could buy $30 shoes instead.

the dave ramsey "financial peace" program is awesome !!

Specializes in Cardiac.
If you choose to not work, your financial need is greater and thus you'd qualify for more loans. It's not "needlessly" borrowing when you have a financial need to do so..

.

Yes it is needless! If you have the ability to work for yourself, instead of borrowing money to eat, then it's needless and reckless! God forbid anybody work when there is perfectly good money to borrow~!

And yet, we wonder why we are all in the economy that we are in today. Right, your recklessness with money has nothing to do with anybody else....sure.

Everyone here who spent their right kidney and justifies it with 'having a great time' or 'meeting new people' or, 'experiences' is using a sad, tired argument.

You can vacation, work (gasp), travel, and meet the same interesting people without having to mortgage your future on it.

Life it what you make of it. And I certainly met fantastic people in my CC. Even MORE fantastic people at my workplaces, and have seen/experienced/enjoyed many parts of this world while traveling.

All for under 100,000. Go figure.

Specializes in LTC, Med/Surg, Peds, ICU, Tele.

What type of 'interesting people' will you meet in high-priced schools? Either those from wealthy families or those incurring tons of debt to go to school. How cool is that? :rolleyes:

Teach me that quote thing. Everyone does it. I want to too.

At the bottom of each post there is a "quote" button--hit it instead of reply.

As for the mindset, I get what you are saying. However, the restrictions and requirements are the same for everyone and you have to remember everyone isn't coming from the same situation. Not everyone can get hired at a job that will accomodate their school schedule or family obligations. Or perhaps they simply don't have the means to get to and from a job.

The videogame thing doesn't bother me, again it comes down to choices. If I choose to live off campus and use money that should be applied to rent and food to purchase an xbox, beer, computer, whatever, then I have that much less money to use for essentials. The school won't give me more money just because I spent what I was given, I'll just have to make other living arrangements or not eat till the next semester.

And that's not to say people who don't qualify for need based aid can't get loans they just don't get the same loans. They can get private loans and there are federal loans that aren't need based (per the link I posted).

I think it's great that some have worked their way through school. If I were to go back to school now, I would most likely do the same. However, there are situations where that really isn't feasible. What's the alternative to allowing people loans? Remove the need based aspect? That already exists with certain loans. Force everyone to work? I think that would be difficult to do considering the current job market! Plus, not everyone is in a situation where they can't work for a variety of reasons (family obligations, transportation issues, whatever).

Also, I don't think the system punishes those who choose to work. They graduate with less debt! You chose to work through school so you payed then and don't have the debt now. I chose not to work through school and now I'm paying for that choice. I didn't feel bad for people who chose to work through school instead of getting loans nor do I expect those people to feel bad for me now that I've got a loan payment. But I also don't think it makes me reckless or irresponsible because I made a different choice. I don't own a car or a house because financially, those would be poor choices that aren't worth the trade off to me but I certainly don't think less of folks who do!

Specializes in Neuro.

I'll have about ~$12k when I'm done and that is for four years. I've taken out every loan I could but get lots of grants and scholarships too.

Yes it is needless! If you have the ability to work for yourself, instead of borrowing money to eat, then it's needless and reckless! God forbid anybody work when there is perfectly good money to borrow~!

The economy isn't tanking because people borrowed money to go to college. You want to jump on the debt destruction bandwagon, be my guest! But there are far worthier targets than people who take out loans for their education.

How bout the idiots who paid insane prices for their homes and are now facing forclosure? Or the people who have racked up thousands in credit card debt they can't afford to pay? Those are the reckless and irresponsible folks who are now filing bankruptcy to get a clean slate without paying that money back. Student loans get paid back one way or another--the government will keep tax refunds and garnish wages (I know someone who was in this situation) if you don't pay voluntarily but one way or another, those of us with student loans are paying them back.

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