take out school loan even if I do not need to?? - page 3

Hello, I am wondering I can afford to go to college without taking out school loans. I would be going for my associates' degree. However, I have been wondering should I take them out anyways and... Read More

  1. by   New CCU RN
    I don't agree. Loans are out there for everyone. It is not the same as taking out a grant or scholarship that only certain people qualify for. Even if you can pay for school on your own, I am sure it is stretch. For most of us it is.

    The majority of facilities participate in some sort of tuition reimbursement. What you need to decide for yourself is if you are willing to spend whatever amoutn of years working for a certain hosp so they can pay back ur loans..... that only u can answer based on the facilities around u.

    One other thing.....if u have no credit at all....like many college students do..the gov't loans can help in the long run... they have low interest rates and many of them don't require u to start paying or accumulating interest til after u graduate and are working. This will help build ur credit in a positive manner if you pay ur loans responsibly.

    Go for it.
  2. by   New CCU RN
    Oh one other thing... the interest u pay on a student loan is tax deductable...why not have more things u can deduct to get money back from the gov't that you earned
  3. by   fergus51
    Loans are not there for everyone, trust me. There is only so much money out there for loan programs. They are there to help those with limited financial resources, not to be used as an investment fund or credit line. I seriously doubt most people would defend a rich person getting a loan they didn't need, so I don't see why it is ok for someone of a middle class income bracket.
  4. by   llg
    Dear back2school: and I mean this kindly ...

    You seemed to have missed the point. Many of us who are advising the original poster NOT to take out the loan are doing so not because he/she would not benefit from it ... but rather, we believe that it is UNETHICAL for someone to take the money out of the hands of someone else who really does need it.

    A financial advisor (or financial aid counselor) will probably not consider the ethics of the situation. They will simply tell you whether or not you are eligible for the loan and details about it. It is true that, if you don't need the money, you can simply invest it and make a profit on the interest. But you may be making that profit by hurting other people. By taking money that you don't need, that money becomes unavailable for use by others who may really need it.

    From an ethics standpoint, the question switches from, "Can I make a profit this way?" to "Is that the kind of person I want to be?" For some of us, the answer to that second question in "No" and we believe the world would be a better place if more people said "No" to the practice of making money by hurting other people.

  5. by   maureeno
    This is off-topic but related to the 'ethics' of our times... several economists estimate the 10,000 largest coporations are defrauding us all out of tax revenue of least $50billion each year........huge fees are paid to accounting and law firms to facilitate such cheating.....
  6. by   back2school
    I wasn't advocating taking money from those less fortunate. I assumed from looking at the Financial Aid forms that the government would know who to give the money to. They require your previous years tax forms and information on everything you own.

    The loans, on the other hand, are different. Some are subsidized and once again you must submit all your financial information to receive them. They don't give to people with high incomes. OR ... You can get loans on your own from a bank or lender which are not subsidized. I was thinking of the latter.

    Whether or not to get a loan truly depends on each individual's financial situation. Definitely try for all the scholarships!

  7. by   colleen10
    I'm not going to get in on the discussion regarding the "ethics" of taking the money because after reading the posters original message I don't think they would take the money to invest it and make a profit, I think their stand point is "why should I pay for my education now, when I can take out a loan, have it or the bulk of it paid for by the government or future employer there by in the long run saving me money." While it may not be ethical I can't blame anyone for trying to figure out a way to save a buck.

    I wanted to add, though, that like my first post, I still would stay away from getting a loan unless I really had to.

    The reason I feel this way is because my first time around college (B.S. Agricultural Science) I had to take out a $17,000.00 loan from the Feds. By the time I finish re-paying it, it will be more like $26,000.00. Right now the payments are somewhat manageable but they get a little larger every couple of years and by the last two years they will be about $350.00 a month. I have no idea how I am going to be able to afford that when I am having difficulty affording the half of that that I pay now every month.

    Was the loan worth it? Not in my opinion. At least where I live, if a college educated person can even find a job they aren't going to make more money than a person with no education, yet they are going to have huge loans to pay back.

    And, when I was laid off and the economy was allready into it's downward spiral I deffered my loan for the max. 6 months that you are allowed to if you are laid off, pregnant, ill, etc. After those 6 months when I still hadn't had a single interview the loan office didn't care, they just wanted their money, they were not going to cut me any more breaks no matter what situation I was in.

    Now that I am back in school for an ASN I am trying to pay as much of my expenses out of pocket as I possibly can but know that I am still going to have to take out a loan. Once I graduate I will certainly try to have loans reimbursed if at all possible.

    However, if I end up working in a facility that is deemed "needy of nurses" by the state or for an employer that will re-pay my loan I won't risk my new license or my sanity if it is understaffed, unsafe, etc. just to get some money reimbursed.

    Remember, nothing is free, most of the time when a place offers big bonuses, etc. it is because they are desperate for people. And, there is usually a reason that they can't people there. I'm not saying that every place is like, but, it is something to consider.

    So, I guess the point of all of this is that no one knows what the future holds. Years from now when you are an RN and have those loans hanging over your head you may have difficulty paying them back, maybe you will have started a family, run into some sort of financial difficulties, be sick and un-able to work, who knows?

    Maybe you will find a place that will re-pay your loans but at what expense to yourself and your career? Will you want to work on a floor that you are not all that interested in on a shift that you don't really like with management that doesn't really care about ratios?

    Maybe you will get lucky and find a great place to work, but who can say for sure?

    That's just my opinion and the #1 reason I have stayed away from getting more loan than I need and going through a hospital run program that will pay for your educaiton if you stick around for 2 years.
  8. by   maureeno
    unsubsidized loans start accuring interest immediately; though payment is deferred the cost of the loan begins ticking at time of issuance.
  9. by   Agnus
    sounds too much like a gamble. A lot can happen and you might get stuck with paying not only the loan but intrest on a loan you didn't even need.

    I can think of a thousand reasons this could go sour for you. Instead concentrate on getting the job you want after graduation with the freedom to move if you don't like that job after all. Count your blessings. Trying to get something for nothing seldom works.
  10. by   Agnus
    Advising people to take out unneed loans is foolhardy. If you don't need it and you have it there is the terrible temptation to use it. Ideally such a loan should not be spent. It should only be held in reserve until such time that you need to repay it or until it is completly repaid. I can almost guarentee that your good intentions to put it away until this happens will not hold out. You will find a "good reason" to use it. Don't do it.
    Just because a counselor or advisor at school says to do it does not make it good advice. THEY ARE NOT THE ONE GETTING STUCK WITH IT. Remember the interest also.
  11. by   hapeewendy
    maybe I'm the only one
    but to me this is such a no brainer
    if you don't need the money don't take out the loan
    besides all the ethical stuff, I can tell you firsthand that its a pain in the butt to be paying off a loan , interest is a B---h
    I paid my own way thru nursing school entirely , from working and also a student loan which I am still paying off..
    there was no other way around it, my father wouldnt help and my mother couldnt help...
    I had a "friend" In nursing school who was ripping off the student loan ppl big time, said she was an independant student, got tons of cash for that ,meanwhile her mom was paying for everything , she bought a new stereo and car with her student loan
    and all I could help thinking was someone didnt get as much money as they could/should have because she decided to apply for a student loan and spend it frivirously..
    peeves me off...
  12. by   -jt
    Take the student loans now because by the time you have to repay them, the Nurse Reinvestment Act will have been funded by Congress and you could apply for that to repay the loans while you are still in school if you agree to work in a facility or area that is experiencing a shortage. Through this new law, once you have your RN, if you still have outstanding loans, 85% of the amount can be paid through the Nurse Education Repayment Loan Program under the same conditions. (hapeewendy, you still have time to apply for that assistance - deadline is 3/31)

    also, borrowed from the sticky: Funding Nursing Education:

    check with your state nurses association for state-sponsored educational grants for nurses and students nurses. Thanks to the hard work & political activity of a lot of pro-active RNs, many states now have legislation to compliment the federal Nurse Reinvestment Act and Nursing Education Loan repayment Program.

    Legislation passed in 2001 to help fund nursing students:

    Illinois legislation amends the Nursing Education Scholarship Law. Rhode Island legislation allows interest on student loans to be forgiven. Texas law makes grants to nursing programs to increase enrollment, so check with the individual schools on that. Oregon legislation repays student loans for nurses practicing in nursing shortage areas. Two bills were passed in Nebraska - The first provides eligible students with a loan forgiveness program after practicing nursing for an agreed upon period. The second bill provides loan repayment to nurses who agree to practice in a shortage area (so a student takes out loans while in school & the state later forgives the loan or pays them back for her). Legislation passed in Virginia provides scholarships and loan repayment programs for nurses.

    In 2002, CA, CT, ME, MN, NV, NJ, NM, NY, and PA were also working on state laws to help nursing students go to school. Contact your state nurses associations for details.

    If you work in a healthcare facility, check with your employer and union about tuition reimbursement or loan forgiveness if are willing to commit to work at that facility for a certain period of time after you graduate. And dont forget to go to the online scholarship search engines & use keywords: Nursing, medical, health, sciences
    Last edit by -jt on Feb 14, '03
  13. by   fergus51
    I don't think hapeewendy can get the money, unless the America congress wants to start giving money to Canadians

    I would add a lot of places experiencing a real shortage and offering tuition reimbursement are complete hell holes. I worked at one such place for 3 months as a new grad and can say with all seriousness, a year or 2 commitment might as well be an eternity.