Was Taking a Loan Out, Worth It?

Nursing Students General Students

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Hi Everyone.

I was just wondering and actually asking for some advice. For those of you out there that has already been through this, I was wondering on a couple of things regarding student loans. I applied for a loan of $15,000 to cover what I couldn't cover for school and partial living expenses. I'm actually independent of my parents and could not get a single soul to help me co-sign my loan because of various reasons. My question is... do you think it will be worth it?... The reason I ask is because the way my loan is setup, 20 years repayment means around $70,000 after everything. That's over 4 1/2 times of what I borrowed. My interest rates are really high because I am actually fairly young with not a strong credit established yet with no cosigner, but they did approve me for the loan. I have a couple days left to cancel if I wish for them to not disburse my loan. I'm wondering if it will be worth it in the end.

I really want to go to nursing school though. I've waited 2 years for this chance. I do not want to pass up the opportunity, but that loan seems a little steep for me. What do you think?

Sorry if the post is long, but any advice is much appreciated.

~nphan2

Specializes in RN- Med/surg.

Yes- it was well worth it for me. It will increase the standard of living for the rest of my life. My education will provide for my family...and my retirement. If your monthly payments are less than the increase in your income....it's worth it.

If your interest is too high....refinance it once you have a better income and good credit. Good luck to you!

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Specializes in LTC, Nursing Management, WCC.
I used student loans to pay for my BSN/MSN to the tune of $40,000. However, I figured in my earning power and it was still well worth it.

Geez I am over $60,000 for just a BSN. I hope I find a job soon. Graduate this Saturday and we are soooo saturated in the area. No more nursing shortage by us.

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Do you qualify for any federal student loans?

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Specializes in NICU.

If you're independent of your parents, then you should be able to get quite a bit of government financial aid. Did you fill out your FAFSA (http://www.fafsa.ed.gov/)? Whatever isn't provided in grants, the rest should be covered in government loans (i.e. Stafford loans). If you qualify for government loans, that's the way to go because not only will the interest rate be a bit lower, it'll be fixed.

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Think for a second: if you repay that loan over TWENTY years, you will be paying a total of $55,000 for the privilege of borrowing money. Divided by 20 years, that's $2750/year. Is your nursing license worth that to you (or the $3500/year with the actual amount borrowed figured in)? Will your income increase by at least that much? Also, remember that with inflation being what it is, $2750 in loan repayment in 2028 (or even 2018) isn't likely to seem like too much money, so while it might seem hard to pay any over the minimum right now, it'll get easier as your income increases. Chances are you'll have it paid off within 10 pretty easily.

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Geez I am over $60,000 for just a BSN. I hope I find a job soon. Graduate this Saturday and we are soooo saturated in the area. No more nursing shortage by us.

Where are you located?

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Back in 2004 I was 23 years old, living in my own home, and independent of my parents when I applied for a $20,000 private student loan. Since I had a 5-year established credit history, the loan was approved with good terms, no cosigners, and no questions asked. Back then, I was working hard labor at a factory and felt the desire to escape that dead-end job.

Obtaining a loan was worth it, since the dollar amount has repaid itself several times over. 2006 was my first year working as an LVN, and I earned just under $47,000. I have already earned $45,000 during 2007 (my second year as an LVN), and the year is not even over yet. In 2 years, I have earned nearly $100,000 on an initial investment, which was the $20,000 student loan. By the way, I paid the loan off early.

If you don't mind...

1. What was your monthly payment?

2. Interest rate?

3. How many years did it take you to pay off the loan? (from what I've read it seems like it took you 2-3 years)

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Specializes in Case mgmt., rehab, (CRRN), LTC & psych.
If you don't mind...

1. What was your monthly payment?

2. Interest rate?

3. How many years did it take you to pay off the loan? (from what I've read it seems like it took you 2-3 years)

My monthly payment, if I recall correctly, was about $270 monthly with an interest rate of 7 percent. The loan was originally scheduled to be paid off in 10 years, but I paid it off early in less than 3 years. If I would have stretched it out to the entire 10 years, I would have ended up paying back nearly $29,000 for a $20,000 loan. In other words, I'd have paid almost $9,000 to borrow $20,000 if I didn't pay it off early.
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My monthly payment, if I recall correctly, was about $270 monthly with an interest rate of 7 percent. The loan was originally scheduled to be paid off in 10 years, but I paid it off early in less than 3 years. If I would have stretched it out to the entire 10 years, I would have ended up paying back nearly $29,000 for a $20,000 loan. In other words, I'd have paid almost $9,000 to borrow $20,000 if I didn't pay it off early.

My hats off to you! You encourage me. I already have significant debt from a B.S. and MBA degree that I have to pay off once I get out of my ADN program and start working. I am very hesitant to add to that load, but I'm thinking about taking out a loan when I start my ADN program in March 2008 so that I don't have to work so much.

I know that some organizations will pay off nursing degree loans, but my credit score has already taken a nose dive due to my high debt to income ratio. I hate to pile it on even more :o.

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Specializes in Family Practice, Primary Care.

Are you sure you're doing the math right?

I have 30k in student loans, but over the length of my repayment of 20 years the total repayment will only be 40k.

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If you're independent of your parents, then you should be able to get quite a bit of government financial aid. Did you fill out your FAFSA (http://www.fafsa.ed.gov/)? Whatever isn't provided in grants, the rest should be covered in government loans (i.e. Stafford loans). If you qualify for government loans, that's the way to go because not only will the interest rate be a bit lower, it'll be fixed.

I'm independent of my parents in real life... but according to my school, as long as I'm under 24/25, the government will still see me as a dependent upon my parents... it was complete BS.. my parents do not give me a cent.. they do not claim me on their tax returns, and yet I'm still "dependent" upon them (according to our government).. so I don't qualify for grants, and my federal loans is still not enough to cover school.. none the less counting living expenses..

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Are you sure you're doing the math right?

I have 30k in student loans, but over the length of my repayment of 20 years the total repayment will only be 40k.

with my interest rates (trust me, don't ask, it's ridiculous)... twenty years repayments equals about $70K.. I am jealous of everyone else who has low interest rates..

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