Help! Money! In a pickle!!!

[Epona]

hey everyone! here is the scoop. i got into a bsn rn program at a private university. i already have a bs so i thought getting the bsn would be a good route for me.. i already have a lot of the prereqs. done which will go toward the bsn degree. the other public (and cheaper school) is around 70 miles one way.. so that is out. here's the deal... for $20,000 for school, it will cost me over $100,000 to pay back over 20 years!!!! the payments will be around $423 a mo. for 20 years!! and that is only for $20,000. i will need around $60,000 to go. gggggeeeezzzzzz! so that means for $60,000 my monthy payments will be $1,200 a month for 20 years!!!! that is horrible! ahhh!!! [color=olive]what do you all do!!! how do you do it!!??aaaahhhhh!! i am really discouraged. i can go, but it will cost a fortune... my husband said that is the cost of a mortgage payment! i am going to apply for scholarships, but oh boy!!!

help! help!!!

e

[NICU_Nurse, BSN, RN]

Yay! Good luck!:cheers:

[Kayartea]

you are awesome!!

ok.. i followed up too after reading all the great posts here. you guys are the best and i credit alot of my nursing advice to you!!! :thankya:

i called the school to see what else i could qualify for. i discussed the high sallie mae loan. i got another girl in the actual college loan dept. (who came recommendded from the head of the fin. aid dept.). she told me that yes.. i could qualify for additional stafford loans as i used to make $40,000 and now only make around $20,000. she said this was a drastic income drop and changes my situation. she told me to contact the head of the fin. aid dept. and ask if they could adjust my efc number from fafsha. i have contacted the head of the dept., and i am waiting to hear back. i may be able to get an additional $5 grand in the form of stafford loans.

also.. she gave me other lending institutions to call to see what their apr rate is. most of the others i called have rates that go to 10 percent. better then what i am paying, but not a lot. they said their private loans are credit based too... so i could end up in the same pickle and the rates go up and down i was told.

i finally called sallie mae back and got a rep. who seemed to know what he was talking about. he explained to me that the $100,000 amount was based on a four year program and not paying anything on it for like 5 years. i said 'well i hope to be out in 2 years.' and he said 'well then that basically cuts the repayment in half.' he said this note was based on one being in school for four years and not paying a dime for years. i was like 'oh... ok.. that made sense then.' so the $100,000 is actually $50,000 and if i pay some of the interest on it while in school ( i have decided to work a little part time job)... that will help cut the payments too. the $100,000 was based on four years. geezzz.. i will not be in school that long. the paperwork did not explain any of this. this rep. seemed to know what he was talking about and it made sense.

so... i went to the school today and paid a deposit on my nursing seat. yeah!! so the sallie mae is coming, but i have learned (thanks to you and the knowledgeable gal at the school finally) more about loans from stafford to private... apr rates and so forth. i am applying for a number of scholarships once i am "in the door." this loan will at least get me in the nursing door and then i will have time to check around once i am in.

yeah! thanks again for all your help!!!! you are the best!!!!

:loveya:

one other place to check is your state board of nursing. due to the nursing shortage they now have federal money to use as nursing school scholarships. they are available for masters programs, too. but they only have so much, so apply early.

[Jo Dirt]

Oh... and my interest rate on the loan is almost 15 percent.

Please, stay away from that scene.

There are much better ways to go about this. Even as around the bush as it sounds (and I don't expect you to do this), the route I went was fairly cheap and I got through it with absolutely no debt. I went through a year long LPN program (I don't care what anyone will tell you, becoming an LPN is not a waste of time. 10 to 1 people who tell ou this have never been LPNs) and when I was ready I took a job as a private duty nurse on the 7pm-7am shift, which allowed me more than enough study time. I enrolled in a distance nursing program and with my job making $18-$21.00 an hour I was able to pay my way through RN school out of pocket. No, it wasn't cheap (about $6000 total) but it didn't break the bank, either. And no, my degree isn't a "pedigree" but it has not affected my ability to get as good a job as the next RN. In fact, other than the application, my employer never asked about how I got my license.

This is just an example. There are other ways, I know.

You are asking for a life sentence with this deal. It isn't worth it.

[Jo Dirt]

i finally called sallie mae back and got a rep. who seemed to know what he was talking about. he explained to me that the $100,000 amount was based on a four year program and not paying anything on it for like 5 years. i said 'well i hope to be out in 2 years.' and he said 'well then that basically cuts the repayment in half.' he said this note was based on one being in school for four years and not paying a dime for years. i was like 'oh... ok.. that made sense then.' so the $100,000 is actually $50,000 and if i pay some of the interest on it while in school ( i have decided to work a little part time job)... that will help cut the payments too. the $100,000 was based on four years. geezzz.. i will not be in school that long. the paperwork did not explain any of this. this rep. seemed to know what he was talking about and it made sense.

[/b]

:loveya:

that is still an obscene amount of money. i don't want to be negative but with some patience you could still find "other" ways. remember the tortoise and the hare: the tortoise is ugly, he's slow, but he wins the race everytime. don't just pounce on this deal because you feel it's urgent you hurry up and get in.

i'm assuming you don't have children (but if you do, this would be all the more reason to stay away from this bum deal), but what about work study? i know people who have gotten through school without much financial burden this way.

i don't care what anyone says, $50k is not going to be easy or convenient to pay back. 50k for a school loan is stupid. i know people who have gone $20k+ in the hole for a degree then try to rationalize it as being a good investment because their "big" nurse's salary (ha ha) will pay it off in a few years.

get real.

[TAMCDIVA]

I'm not so sure about your numbers. I have 30,000 out and my payment is around 200.00-- YOu need to recheck or get a second opinion.

[BSNtobe2009]

I was going off of the fact that she said it was a 21,000.00 loan at 15 percent interest

Oh, I knew that, but I was just trying to point out that when lenders are running scams, there are all kinds of ways for them to hide it, and the Federal Government does very little to protect the public.

There is something called an APR (Average Percentage Rate) that is required to be on every loan, regardless of what kind of loan it is. Many loan officers will tell people, "Oh, that isn't the interest rate you pay" or "Oh, you don't need to worry about that."

It's the most important figure in your entire stack of papers and so-called "lending professionals" have no idea of what it's really for, or how to explain it to the general public.

It reflects the TRUE cost of financing, fees, origination, yield spread premium, junk fees. This is how everyone gets paid, and the vast majority of it is fully negotiable and it would blow your mind to know what the gov't will legally allow a lending institution to charge.

When most people get quoted an interest rate, what the LO is quoting is either a teaser rate or the rate for the first year. The general public assumes that most interest rates are fixed, some are, some aren't, it just depends on what you were quoted.

The details of how your loan works is explained in your NOTE. When I mean fully explained, I mean FULLY explained. There is a reason why that section is anywhere from a paragraph to a couple of pages long. It tells you how your payments will be calculated and on what interest rate it will be based on. Most people just look at the bold faced number in the first sentenced and soldier on. The LO is counting on the fact that you are doing that.

Most Adjustable Interest Rates have a "cap" rate, and this is something that you need to pay very close attention to, it is the maximum rate that your loan CAN go to, in the event that the interest rates get out of control. 10 years is a long time folks, and NO ONE can predict what will happen. They can either skyrocket (1986) or crash (9/11/2001).

There are all sorts of crazy ways the rate can adjust in between, and that is where your note is important.

The law requires for a lender to quote you the worst case scenerio when estimating long term ammortization, sometimes, what is reflected is NOT what you will pay, but reflects what you MAY have to pay.

[HitmanCFYA]

You have a bachelors already in another field?

You're wanting to take a student loan for living expenses?

I don't think I could jeopardize the financial security of my family to change careers. Stay working in your current field while you lay the groundwork for a more prepared push which involves no loans.

You cannot borrow your way to prosperity.

[Jo Dirt]

You have a bachelors already in another field?

You're wanting to take a student loan for living expenses?

I don't think I could jeopardize the financial security of my family to change careers. Stay working in your current field while you lay the groundwork for a more prepared push which involves no loans.

You cannot borrow your way to prosperity.

THANK YOU!!!!!

[sunnyjohn]

I think "stupid" is a bit harsh.

I have a BSc in another field. I have 1/4 of a Masters. I worked my way through school to get my last certitifcate in Surgical tech.

I have worked in financial services as a stockbroker and an advisor. I like to think I am good with money matters. Because of the hits I've taken due to terrible money mistakes in undergrad, I've learned to ABHOR debt.

I have been working like mad for some time to save enough to pay for nursing school AND rent, food, utilities, car insurance, etc. I am EL CHEAPO SUPREME and even if I live on macaroni, ramen, bread, peanut butter and an occasional pack of ground beef, it will be tight.

Yes, I will get scholarship money, but federal aid and the scholarship won't cover it all.

I have worked out a plan to utilise my saving, my 5.05% HSBC saving account rate and a loan to pay for school.

I have also worked out a payment plan to pay back all my loans in 24-30 months. I recognise I will have to continue to live frugally for a time after get my nursing degree if I intend to reach my goal.

I don't the OP plan to borrow so much at such a high % rate is sound, but I do not think it is "stupid" to borrow to get an education. Yes, the best laid palan can go awry, but as long as you have one (and don't blow you first year of nursing paychecks on expensive things because you felt deprived during school) you CAN do it.

I fully intend to use my RN degree and subsequent pay as seed money to pave my way to multi-millionaire status.

[Jo Dirt]

I think "stupid" is a bit harsh.

I fully intend to use my RN degree and subsequent pay as seed money to pave my way to multi-millionaire status.

Yea, it is a bit harsh but that is because I feel so passionate about avoiding debt. No, taking out school and other loans doesn't mean a person is stupid, but it is a stupid thing to do. And of course, we have all done stupid things, but no sense in willfully walking into it.

There is no reason a person should have to take out 50k or even 20k to get an education. An education is important but there comes a point when it doesn't make sense to go into that kind of debt for the kind of job you will get with your education. Sure, med students and attorneys will rack up that kind of debt plus some but you are talking about high-paying professions. How will it feel when you have to say, "I took out a 50k loan for my BSN" when other people will be able to say, "The cost to get my BSN was less than $10,000." Even if they took out a 10k loan (which I don't suggest) that is tons less than 50k.

I tend to preach here because I've done it and I feel certain anyone can do it. My family and I lived on hamburger helper and ramen noodles and scratched and saved and paid for school as I went along. Now I hate being a nurse and feel like I'm about to go around the bend but that's not the point...boy, what if I found out I hated nursing after tens of thousands of dollars in debt???

If you are an unencumbered person you can get through school with no debt. Don't try to be intellectual and play with numbers to justify the debt. Most all your money issues are related to financial behavior, not intellect. There isn't any reason why you can't work and pay for school as you go along.

[sunnyjohn]

Motorcycle mama,

I agree with you. I do think that there is too much debt in this country. I also think that people overestimate the amounts they need to live off.

Everyone want to be comfortable, but do you really need DSL to be comfortable? Turn the thermostat down to 65 and wear a sweater/socks. Shop at the cheap grocers. Get only basic telephone service.

I am a surgical tech and I intend to work PRN through nursing school, but there is NO way I could pay tuition, buy books, pay rent, eat and still make the grade to stay in my accelerated nursing program. I have no kids, have lived in my car (while in school) off dry ramen and cold noodles. It was rough.

Remember everyone won't get in the local ADN/BSN prgram. I am not saying borrow up to your eyeballs. I am saying is try to save as much as you can, work a little and watch, watch watch what you borrow.

[BSNtobe2009]

Yea, it is a bit harsh but that is because I feel so passionate about avoiding debt. No, taking out school and other loans doesn't mean a person is stupid, but it is a stupid thing to do. And of course, we have all done stupid things, but no sense in willfully walking into it.

There is no reason a person should have to take out 50k or even 20k to get an education. An education is important but there comes a point when it doesn't make sense to go into that kind of debt for the kind of job you will get with your education. Sure, med students and attorneys will rack up that kind of debt plus some but you are talking about high-paying professions. How will it feel when you have to say, "I took out a 50k loan for my BSN" when other people will be able to say, "The cost to get my BSN was less than $10,000." Even if they took out a 10k loan (which I don't suggest) that is tons less than 50k.

I tend to preach here because I've done it and I feel certain anyone can do it. My family and I lived on hamburger helper and ramen noodles and scratched and saved and paid for school as I went along. Now I hate being a nurse and feel like I'm about to go around the bend but that's not the point...boy, what if I found out I hated nursing after tens of thousands of dollars in debt???

If you are an unencumbered person you can get through school with no debt. Don't try to be intellectual and play with numbers to justify the debt. Most all your money issues are related to financial behavior, not intellect. There isn't any reason why you can't work and pay for school as you go along.

Just remember that the key word here is "family" may be the reason you have been able to not had to take out loans. Some of us are single, and don't have that other income to rely on that will allow one to work while the other one quits and the food magically appears on the table every day and the lights mysteriously stay on.

When you are the only income earner, and the only school is full-time, you don't have a choice.

PART-TIME NURSING SCHOOLS are about as rare as the white-elephant. That's sad, but it's the truth. If someone has to take out a large loan in order to be an RN I say so be it....work to find your cheapest route (get a roommate is a MUST! Get rid of your car payment! Set yourself up!), but not everyone can move, because that takes money too!

Just remember not everyone has the same circumstances, and if you are a single parent with a non-school age child you have to PAY for someone to watch that child while you are at school AND at work.