Student Loan Debt

roser13, ASN, RN · Jan 17, 2016

Never mind - did not read the OP clearly.

Editorial Team / Admin · Jan 17, 2016

I didn't even have that much debt for both my BSN and MSN combined.

I went to a small private college where I was offered a 1/3 tuition scholarship, commuted from home (still living with my parents at the time), worked part time (on the books, anyway, but picked up enough partial shifts to be full time).

When I did my masters degree, I was working full time plus taking a lot of call. My employer paid tuition reimbursement up to $4800/year. I never took out more in loans than I absolutely had to- between the 10% discount because my employer partnered with the school, the tuition reimbursement, and my savings set aside specifically for school, I did not need much of a loan. Currently, my loan payments for both undergrad and grad are slightly over $300/month.

Personally, I'd never take out more in loans than I could reasonably expect to make in a year. These new grads coming out of school with over $100,000 in loans is just mind boggling.

joanna73, BSN, RN · Jan 17, 2016

I'm a Canadian educated RN, and the private school tuition fees that are common in the US do not exist for us.

Our education is regulated both federally and by the Provinces, but the curriculum for nursing is fairly standard across the country. The average tuition fee for our 4 year BSN is 45,000 (not including books). There are approximately 20 nursing schools across Canada, and that is it.

I'm astounded when I read that some schools cost 80-100k for nursing. I borrowed 48,000 and paid this back within 2.5 years.

In addition, I worked full time through years 3 and 4. I also cut my expenses (no cable, no cell phone, ate cheaper food).

Prior to taking the loan, I calculated all of my expenses and made a budget. Everyone should realize in advance the cost of borrowing, and understand how debt will impact your lifestyle.

Can you really afford to borrow 80k or more? No one can. Do you want to pay high loan payments for 20 years? If there are cheaper options, use them.

My frugal ways work for me. I'm content and I have only a mortgage debt now, which I plan to pay off within 10 years.

When I was paying my loans, my take home pay was 4100 per month. I paid anywhere from 1000-1700 towards the loan. My actual minimum payment was 340 per month. However, I had no intention of paying interest for 10 years.

dishes, BSN, RN · Jan 17, 2016

I doubt that debt of $100,000 is common, $35,000 or less is probably more common.

joanna73, BSN, RN · Jan 17, 2016

Actually Dishes, according to the various posts I've read here about student loan debt, it seems that unfortunately, 80-100k is becoming more common.

Part of the reason for that is the inflated cost of many of these schools. I never would have believed it either.

crazin01 · Jan 17, 2016

100K??? wow. i think it would depend on a few things: BSN right away, or diploma program, then BSN (with significant tuition reimbursement through employer? Public or private university? Pay against loans while in school (I only recently even found out about this, which amazed me that a work-study college student would be able to after tuition, books etc).

While attending nursing school (2003-2006) student loan interest rates were obscenely low and before they increased to like 6%, I consolidated mine to lock in at like 2% and because of this consolidation, I was not eligible for tuition forgiveness through the state. (it was a perfect time to be completing RN school and there were horrible shortages especially locally, so I had good timing in that respect).

I went to a small private university for undergraduate studies (biology/pre-veterninary major after high school. however, after I had health concerns of my own, I dropped out of undergraduate and decided to go to nursing school). I did a 3 year diploma program. After two and a half years of undergrad and 3 years of an RN diploma program, my total student loans were about 20-25K. I never thought we were poor or anywhere close to poverty level, but my parents combined made just under my starting RN salary in a year. So, I'm sure that the family income & an older sibling already in undergraduate studies was a large factor.

After I was working as an RN, I attended an accelerated BSN program (actually offered at the hospital I was employed through) via a small private catholic university. They had adjunct & retired professors just for the on-site programs, versus the professors teaching at the physical campus. I received 80% tuition reimbursement from my employer, given my GPA was 3.0 or higher and completing 12 months of employment after finishing the bachelors program. Of course they taxed reimbursement and capped it at so much a credit, but I averaged paying about 12K a year upfront to the university and received 80% back after my paperwork was signed by all appropriate committees and such. As far as picking the program/school for BSN, it was essentially a no-brainer: 10 minute drive to hospital/work, one four hour class a week (each class usually 5-10 weeks) and lots of paper writing, community projects, easy high GPA and almost essentially paid for. It would have been difficult to sway me to decide against the convenience of that program.

I hope that's of some assistance. I imagine to get to the 100K mark it goes much quicker than you think. One of my best friends from undergraduate is a veterinarian and her loans (after working for about 4 years) are still just under 200K. I do not envy her in that at all. My monthly loan payment is broken down into two separate loans, but totals a minimum of $150/month, to which I add more. I know student loan debt is really the only 'good' debt but still, will feel better once paid off and extra goes into 401K and other good stuff.

I'm not sure what current tuitions are, compared to 6-7 years ago when I was enrolled. But I imagine it cannot be any less costly and probably less convenient, as places are seeming to think there really is no shortage, despite everywhere being minimally staffed and OT being so prevalent.

Sorry, I don't think I've helped much, but interesting question. I'm curious to see some other replies. And I certainly hope it is far from the norm, to accumulate that much debt from an RN diploma or BSN.

KeepItRealRN, BSN, RN · Jan 18, 2016

Thank you everyone for sharing your stories. I have read them all so far and appreciate your input. Sometimes I wonder if people turn to expensive private and (ugh) for profit schools because it is easier to get in due to decreased competition as a result of cost. I can totally understand it is difficult to get into reasonably priced State Universities and Community Colleges because there is a larger pool of applicants. Could some of the huge debt be a result the attendee being impatient to get into nursing school and therefore of attending a school that is essentially unaffordable?

jadelpn, LPN, EMT-B · Jan 18, 2016

This depends.....

IF one is a high school graduate and is immediately going into a bachelor's program of any sort, the actual debt that the STUDENT has is nominal. There are government loans that are given, but usually capped at less than $10,000 a year.

Their parents, however, can either apply for "plus" loans (and if denied, the student gets a little more in their loan money from Uncle Sam) or are needed to co-sign on a private student loan. (Unless the student is working full time, has a credit history, and can obtain one on their own which in my experience is rare)

So the parents end up with 100K of debt, and the kids somewhere around 20K or so.

This can all change if the kid gets a nice financial aid package from the school, scholarships, or have grades to get "free tuition" (which is literally the smallest cost of college) in a state school.

But there's many, many entitled kids who are under the impression that:

1. They have worked too hard to get good grades to "settle" for a state school.

2. That they have a "better chance" at a "good" job by going to a name brand school.

AND my personal favorite:

3. Parent's should not have PLANNED on HAVING kids if they were not going to provide a college FUND for them!! Like, Uhm, SERIOUSLY WHO doesn't DO that?!?!?!?!?!?!

If one is an adult, then they can get loans, and there's many one can get as they have a credit history. If we are talking an 18 year old, then we are talking about parental debt.

Until such time as the kid gets their masters. Then it is on them. And the hiring rate in this country for new college grads with bachelor's degrees, I would dare say for the same $$ you could get a really nice condo. and work at an entry level job.....

NurseGirl525, ASN, RN · Jan 18, 2016

I will graduate with my ASN in May with zero debt and then will be obtaining my BSN with zero debt.

My ASN is coming from a community college. Total of about $11k. My ex was ordered in the divorce decree to pay for it but I'm also getting Pell Grants to pay for most of it.

My BSN all told will be under $10k. I should get some tuition assistance from the place I am going to work, use my Pell Grants, and use the rest of what my ex will owe me.

I woukd have have never of gone back if I had to take out any loans.

TheCommuter, BSN, RN · Jan 18, 2016

Here's my educational trajectory...

1. Private nonprofit LVN program, $19,995...graduated in 2005 and paid the student loan debt off in 2007.

2. Private for-profit LPN-to-ASN transition program, $19,000...graduated in 2010 with $12,700 in student loan debt and paid it off in 2013.

3. Private nonprofit online RN-to-BSN program, $5,800...graduated in 2015 and paid the tuition with cash along the way, thereby avoiding debt.

4. Public regional state university online MSN program...still attending. The cost is $230 per credit and I am paying as I go.

KeepItRealRN, BSN, RN · Jan 18, 2016

I will graduate with my ASN in May with zero debt and then will be obtaining my BSN with zero debt.
My ASN is coming from a community college. Total of about $11k. My ex was ordered in the divorce decree to pay for it but I'm also getting Pell Grants to pay for most of it.
My BSN all told will be under $10k. I should get some tuition assistance from the place I am going to work, use my Pell Grants, and use the rest of what my ex will owe me.
I woukd have have never of gone back if I had to take out any loans.

You are doing it in a very wise and financially sound way. Congrats.