To all nursing student with loans:

Nursing Students General Students

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What do you do with your refund check, if you get one?

I took out of my first big loan for nursing school this fall and now I have this refund check from the school. I was extremely blessed to go to college on a full scholarship, so I never had to worry about loans before. Now that I have this one loan to use for my nursing school (9 month AASN, so it wasn't huge, but a nice chunk) I'm not sure what to do with it.

I know this sounds silly but I'm torn between sending it back and using it for myself. By sending it back, it'll be 1/5 less that I have to pay back, which is good. But at the same time I've been in a school a month and have spent $150+ on nursing book supplements (Incredibly Easy, Fundamental Success, etc). I've seen people take their refund checks and go shopping at the mall, but also use it for groceries.

I'm just curious as to what other nursing students do with refund checks after financial aid has taken their share. Do you spend it on supplies, do you get yourself something nice, groceries?

Specializes in NICU.

And remember if you do the loan repayment thing it usually requires a 1-3 year contract (depending on the hospital and how much they pay back). That's a great idea if you plan on finding a great hospital that you like and don't plan on moving during that time.

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Specializes in Med/Surg, Tele, IM, OB/GYN, neuro, GI.

What I've done in the past with mine is got a laptop and some programs, got a PDA and some programs, stocked up on school supplies, paid bills, and if I have any left I but me something nice as a reward for doing so well in school.

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Specializes in Med/Surg, Tele, IM, OB/GYN, neuro, GI.
What's a refund check? I've never gotten any of those...

A refund check is when you get more loans or grants then what you've paid in school that semester. So if you grant/loans total up $5000.00 and you've spent $1500.00 for classes, books, or whatever else the school allows you to get with these loans before they come in. Then you'll receive a check for $3500.00 to do whatever you want with it.

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I applied for student loans early in the year, and later I found out I had been accepted to the program of my choice where everything is paid for. I plan on using my 1,500 in student loans to eliminate my remaining credit card debt and purchasing a few extra things I would like to have for school like a digital recorder for notes. I guess I can justify this because 1) the amount is really not a whole lot, 2) it is a subsidized student loan so it does not accrue interest as long as I'm in school, and 3) being able to pay off some debt and buying school supplies will help me get through school with peace of mind and the materials I need.

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Yep, I paid off most of my credit card debt this past semester. Now we have more money to spend on school supplies and groceries. We're going to try not to dig that hole again. I know I still owe the money, but the interest is much better on a student loan than on a Visa. I'll have one manageable payment when I graduate, and a lower interest rate as long as I always pay on time (easy to do with autodebit).

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Specializes in CNA; LPN Student.

I use it for bills, gas, and childcare. You're still gonna have to pay back part of the loan anyway (if you do give the refund check back) So I would use the money on things you need.

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What do you do with your refund check, if you get one?

I took out of my first big loan for nursing school this fall and now I have this refund check from the school. I was extremely blessed to go to college on a full scholarship, so I never had to worry about loans before. Now that I have this one loan to use for my nursing school (9 month AASN, so it wasn't huge, but a nice chunk) I'm not sure what to do with it.

I know this sounds silly but I'm torn between sending it back and using it for myself. By sending it back, it'll be 1/5 less that I have to pay back, which is good. But at the same time I've been in a school a month and have spent $150+ on nursing book supplements (Incredibly Easy, Fundamental Success, etc). I've seen people take their refund checks and go shopping at the mall, but also use it for groceries.

I'm just curious as to what other nursing students do with refund checks after financial aid has taken their share. Do you spend it on supplies, do you get yourself something nice, groceries?

The main thing you need to be aware of is that IF you use the extra monies for ANYTHING other than textbooks, course material, materials required for a class, YOU HAVE to report and pay taxes on those specific monies. At the end of the year your school will give you a report sheet showing what monies you paid out of pocket, or through school loans. The monies the school gave you as overage or monies you get from private loans or scholarships that are used the way aforementioned you pay taxes on. If you don't report these and you go to file for your next years federal loans uncle sam and the IRS can and will hold those monies that were not taxed. So, just be very cautious about not reporting.

I too have used extra monies for groceries, gas, etc. I DO report them at the end of the year and pay taxes on them, as instructed to by our CPA. These monies, that are extra, are considered INCOME for the year. Just be cautious and contact your local CPA or tax office to verify.

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Specializes in Geriatrics, Cardiac, ICU.
The main thing you need to be aware of is that IF you use the extra monies for ANYTHING other than textbooks, course material, materials required for a class, YOU HAVE to report and pay taxes on those specific monies. At the end of the year your school will give you a report sheet showing what monies you paid out of pocket, or through school loans. The monies the school gave you as overage or monies you get from private loans or scholarships that are used the way aforementioned you pay taxes on. If you don't report these and you go to file for your next years federal loans uncle sam and the IRS can and will hold those monies that were not taxed. So, just be very cautious about not reporting.

I too have used extra monies for groceries, gas, etc. I DO report them at the end of the year and pay taxes on them, as instructed to by our CPA. These monies, that are extra, are considered INCOME for the year. Just be cautious and contact your local CPA or tax office to verify.

Are you sure about that? This money is a loan, not income and you are paying it back, so isn't that like paying on it twice?

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One of my co-workers just graduated and received her bachelors in accounting, so when I saw this thread, having taken out a loan myself, I asked her about it. She said that a loan does not have to be reported on your taxes because it is just that: a loan and you will be paying it back. However, she did say that scholarships and grants that are above your expenses is considered taxable income, but loans are not. I hope this helps! By the way, I used my refund check from my loan to pay off some credit card debt as well!

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Specializes in NICU.

Also, you can't write off all the interest on your student loans, like you can on a mortgage. Which I never understood, but they only let you write off a small amount of the interest.

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Specializes in LTC/Skilled Care/Rehab.

I used what was left over to pay credit cards. I would like to pay off most of my credit cards before I graduate because we would like to buy a house. Interest on student loans is usually cheaper than interest on credit cards.

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I have used mine to update my school computer, buy supplies, or saved for the times I run into income not meeting expenses.

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