I know it's horrible to live off loans but...

ThatBigGuy · Jul 11, 2016

Do you want some acute pain now or a chronic headache later?

The pain now option is to take out the least amount of loans possible. Doing this means you will have no social life, because every waking moment will be spent in class, studying, or working. You'll eat nothing but ramen noodles, you'll live in a crappy apartment, and you won't party every weekend. After two years, you'll have a manageable amount of loans, assuming you have any. Studies have shown that students who work while in school make higher grades.

Or you can take out loans to live on. This is the long term headache. The average student loan takes 21 years to pay off. That means you'll be writing a check to a bank every month until your mid 40s. However, every month for decades, you'll be worried about the car payment, mortgage, food bill, electricity, oh and don't forget about yet another loan payment. Not least of all is the amount of extra money you'll pay in interest over time, about 90 cents extra for every dollar loaned. You will have paid $94,000 for your $50,000 education.

When it comes to loans, it is ALWAYS a better option to go with the short term pain, rather than deal with a headache for decades.

BeachsideRN, ASN · Jul 11, 2016

Agreed. As someone who did everything the "wrong way" the first time around. Take only the loans you need to survive. Make a strict budget, cut everything unnecessary. Find a reliable roommate. Whether you can work while in your program has a variety of factors - your class schedule, clinical schedule, flexibility of your current position, the time you need to stuff, etc etcetc. Do what you need to do, and accept the money you need to make it through the program, no more. Talk to your FA advisor about grants and other scholarships that may be available. Good luck!

Editorial Team / Admin · Jul 11, 2016

Another option would be to take a year off and work while saving up money. Loans are not the solution to everything.

NOADLS · Jul 11, 2016

Enjoy the free ride and move abroad. Don't communicate where you intend to go to anyone and you won't have to worry about those loans.

Search for "debt fugitives." Lots of people enjoy a free ride and then move abroad intending to not pay anything back. And the kicker? The vast majority get away with it.

Here.I.Stand, BSN, RN · Jul 11, 2016

I'm sorry to hear that, truly. Unfortunately though, it sounds like you'll either have to work through school or defer school until you have the $$$ saved up. ThatBigGuy made the perfect analogy with acute pain VS chronic headache. You really don't want to be one of those young people who is buried in debt from the time they graduate.

Cats&Tea&Climbing · Jul 11, 2016

Thank you, this is helpful. I'll really need to think about this.

llg, PhD, RN · Jul 11, 2016

How much are we talking about? That's a big part of the question. Most financial advisers say that you should never borrow more for your education than you will make in your first year after graduation. Find out what realistic salaries are like in your area for new grads in the types of jobs you are likely to get -- and be sure to stay under that amount.

But I generally agree with the "short term pain" vs "long term pain" discussion. It's better to make short term sacrifices now (make sacrifices now or postpone school until you have more savings) ... than to spend the next 20 years in financial trouble.

Cats&Tea&Climbing · Jul 11, 2016

How much are we talking about? That's a big part of the question. Most financial advisers say that you should never borrow more for your education than you will make in your first year after graduation. Find out what realistic salaries are like in your area for new grads in the types of jobs you are likely to get -- and be sure to stay under that amount.
But I generally agree with the "short term pain" vs "long term pain" discussion. It's better to make short term sacrifices now (make sacrifices now or postpone school until you have more savings) ... than to spend the next 20 years in financial trouble.

Starting salary is about 42k a year for new grads (it's a poor state). I did the math (many times) to figure out what school will cost with the scholarship, and it's pretty much 42k total, without the cost of living.

I'm sort of lucky because one of my best friends is a couple levels ahead of me and I'm getting a lot of inside information about externships, and my city is under served so I was going to do a loan forgiveness program for a year, but that's all I've got.

RNperdiem, RN · Jul 11, 2016

Is the $42k just for the school costs or does that include living costs? Is this a for-profit school?

If you live in and plan to work in an underserved area, would an ADN from the local community college be a cheaper option?

I lived at home with my parents, worked as a CNA and paid all of my school costs without needing loans. Financially I am free from loan debt.

Cats&Tea&Climbing · Jul 11, 2016

Is the $42k just for the school costs or does that include living costs? Is this a for-profit school?
If you live in and plan to work in an underserved area, would an ADN from the local community college be a cheaper option?
I lived at home with my parents, worked as a CNA and paid all of my school costs without needing loans. Financially I am free from loan debt.

Not for profit, it's a state school. That's just school alone, but includes all fees and supplies. I am at this school because I have a scholarship. Community college here wouldn't be cheaper when all is said and done. 10k of that number is from my first 3 years as a pre-nursing student. I changed my major my sophomore year.

SororAKS, ADN, RN · Jul 11, 2016

If you do decide on accepting loans, don't go the private loan route. Federal Student loans offer repayment options and repayment doesn't start until you have been out of school for 6 months. No private loans offer these options, and I'm not aware of any of them offering any repayment flexibility.