LOANs... a good idea?

Jules A, MSN · Jul 8, 2010

thanks guys for the advice. what i'm getting is half of you say go for it and the other half is against it. I understand both sides. loans can be a scary thing, especially right now. But i'm one of those people that needs the loans to make it happen. I wouldn't have minded getting my ADN but i'm hearing alot of people saying that BSN is prefered when hiring (that's even if they are at this moment or near future) but i just don't want to hear "oh, we're looking for BSN" ever once i finish school and put all the work in. I honestly don't even know if it's the truth, is it? Does it really matter, honestly, if you have an ADN on paper when they consider you for the job? I do want to get it over with (ABSN) if the price is right, but if it's crazy money, i would go for the ADN

You would have to crunch the numbers and also factor in the time frame before you could start working as a RN. In my experience as a nurse with only their ADN I was hired by a well known magnet teaching hospital in the speciality of my choice so spending only about $6,000 for my ADN was so worth it and then I worked full time with tuition assistance from them toward my BSN. Good luck with whatever you decide.

MInurse.st · Jul 8, 2010

i will graduate with about $25k in loan debt but I dont care because i'm going to move back home and work at the hospital and work full time and over time. With no rent, no desire to buy a new car and car paid for, no desire to own a house, no current desire to have children. I'm going to pay my entire loan off in about 4-5 month and then I will save my money up for grad school. Live simple so when you finally do graduate you can BALLLLLLLLL!!!!!... it makes no sense to graduate and go buy a brand new mercedes and a put a down payment on a nice house unless you got the finances. Thats how poor people live, spend all their money up and never have anything. Learn from them to live better. CONSERVE!

Not everyone has the luxury of living with their parents rent-free..

Your comment about "poor people" is a pretty offensive, not to mention false, generalization.

raianne · Jul 8, 2010

What I really don't understand are the second degree students being willing to quit work and go into more debt. Imvho as an adult there are times when you should delay gratification and that may mean working in a field that isn't your passion while you save enough money to pay your tuition for a second career opportunity as well as not quitting your job to "focus on school".

Ouch. You sound exactly like my father. I was accepted to an ABSN program that begins at the end of August. I currently work in a hospital as a lab tech, and I make enough money to support myself, but definitely not enough to save the money to completely pay my tuition. It would take me years to save that kind of money.

I currently have no loans from my first degree, thank goodness, my car is paid off, and the only expenses I will have are rent, food, gas, and car and health insurance. I am terrified about going into debt, especially since I only get $9500 in federal loans and will have to take out private loans to cover the rest. However, I am going to do whatever I have to do to complete this program. I didn't want to have to quit my job, but my advisor informed me that it would be impossible to work full or part time. I would LOVE to be able to work, but there's just no way to do that and earn a BSN in one year. I'm going to stay casual, and hopefully make enough money each month to at least pay my rent. I feel like I'm jumping off a cliff.

The thing that scares me the most is health insurance. I'm going to buy student health insurance, but the coverage won't be as good as the insurance that I have now. I've been in complete remission for a little over two years now (Non-Hodgkin's lymphoma) and I'm going into this hoping that nothing bad will happen in the next year.

Anyway, I personally think that there is nothing wrong with taking out loans to pay for school as long as you are reasonably certain that you will get a job and be able to pay the loan back. I like to think of it this way: The total amount of debt that I will be in will be far less than the cost of a luxury car. Did you know that a Porsche 911 costs $78,000??? My debt will be less than half of that, and it will be worth it in the long run.

Jules A, MSN · Jul 9, 2010

Ouch. You sound exactly like my father. I was accepted to an ABSN program that begins at the end of August. I currently work in a hospital as a lab tech, and I make enough money to support myself, but definitely not enough to save the money to completely pay my tuition. It would take me years to save that kind of money.
I currently have no loans from my first degree, thank goodness, my car is paid off, and the only expenses I will have are rent, food, gas, and car and health insurance. I am terrified about going into debt, especially since I only get $9500 in federal loans and will have to take out private loans to cover the rest. However, I am going to do whatever I have to do to complete this program. I didn't want to have to quit my job, but my advisor informed me that it would be impossible to work full or part time. I would LOVE to be able to work, but there's just no way to do that and earn a BSN in one year. I'm going to stay casual, and hopefully make enough money each month to at least pay my rent. I feel like I'm jumping off a cliff.
The thing that scares me the most is health insurance. I'm going to buy student health insurance, but the coverage won't be as good as the insurance that I have now. I've been in complete remission for a little over two years now (Non-Hodgkin's lymphoma) and I'm going into this hoping that nothing bad will happen in the next year.
Anyway, I personally think that there is nothing wrong with taking out loans to pay for school as long as you are reasonably certain that you will get a job and be able to pay the loan back. I like to think of it this way: The total amount of debt that I will be in will be far less than the cost of a luxury car. Did you know that a Porsche 911 costs $78,000??? My debt will be less than half of that, and it will be worth it in the long run.

It sounds like you have thought things out and I wish you all the best with your plans. Thanks for the compliment about sounding like your Father the older I got the better my Dad's advice seemed.

coffee and toast · Jul 20, 2010

There is also the opportunity cost of taking the "long route" that at first seems cheaper, both in the immediate and long run.

There will be the immediate salary difference (if your current job pays less than entry level nursing does - may be more true for some of us than others). There will be the longer range delay in advancements in salary, particularly important for those of us looking at MSN/NP/advanced practitioner in the long run. Delaying yourself entry to a BSN program now (for say 2 years of saving up) could mean pushing back 2 years of 70K eventual NP salary 7 years down the road....

I realize thats a long time from now, but consider you are trading 2 years at your current job salary for 2 years down the road at the advanced practitioner salary. This kind of calculation is speculative of course, but I think its important to consider the "long range picture"

Also consider your career development, and whether trading "wait time" in an alternate career for clinical time (when you become an RN) really serves your future plans well.

My vote: borrow conservatively, live conservatively, but don't let the idea of borrowing STOP you from proceeding

Make a five year plan, or 10 year plan to payoff, whatever suits and makes YOU comfortable. Know what kind of salary you need to make yourself "worth" your debt (certifications/externships to prep/even specialty area), know what kind of living budget you need to abide. And then after delineating these things - make sure your plan is YOURS and makes YOU comfortable (I reiterate this because I think its so important in financial planning to opt for something YOU can follow through with). Some of us wanna payoff REALLY fast and move on debt free, some of us are OK with pay 200 bucks a month until X date in order to keep taking annual family vacations. It's up to you, but I think there are ways to accomplish your career goals with a loan burden to deal with.

I'm taking out loans, not excessively, but it sure feels like a lot of money! (Esp. when you look at loan cost with interest - and DO look at that!). A career is an investment, a new porshe is not - and as someone pointed out - this is half the price, what a deal really :)

coffee and toast · Jul 20, 2010

Ouch. You sound exactly like my father. I was accepted to an ABSN program that begins at the end of August. I currently work in a hospital as a lab tech, and I make enough money to support myself, but definitely not enough to save the money to completely pay my tuition. It would take me years to save that kind of money.
I'm going to stay casual, and hopefully make enough money each month to at least pay my rent. I feel like I'm jumping off a cliff.
The thing that scares me the most is health insurance. I'm going to buy student health insurance, but the coverage won't be as good as the insurance that I have now. I've been in complete remission for a little over two years now (Non-Hodgkin's lymphoma) and I'm going into this hoping that nothing bad will happen in the next year.

First of all, I have all my fingers and toes crossed that your past health problems are PAST and do not become a financial, emotional, or physical burden to you in your upcoming schooling!

I replied generally, but I wanted to reply specifically to your quote above.

I too am starting in late August for a BSN, am quitting a career as a lab tech (academic though, not hospital), just received a loans only financial aid package that DOESN'T meet my tuition due, and am feeling that "free fall" into the unknown you describe :)

Just wanted to let you know you weren't alone, I'll let you know if I figure out any magic bullet to take care of it all, but for now, I'm just living conservatively - not eating Ramen though! - and keeping strong about planning out the debt repayment in the long haul :)

mfrancisco · Jul 20, 2010

There is also the opportunity cost of taking the "long route" that at first seems cheaper, both in the immediate and long run.
There will be the immediate salary difference (if your current job pays less than entry level nursing does - may be more true for some of us than others). There will be the longer range delay in advancements in salary, particularly important for those of us looking at MSN/NP/advanced practitioner in the long run. Delaying yourself entry to a BSN program now (for say 2 years of saving up) could mean pushing back 2 years of 70K eventual NP salary 7 years down the road....
I realize thats a long time from now, but consider you are trading 2 years at your current job salary for 2 years down the road at the advanced practitioner salary. This kind of calculation is speculative of course, but I think its important to consider the "long range picture"
Also consider your career development, and whether trading "wait time" in an alternate career for clinical time (when you become an RN) really serves your future plans well.
My vote: borrow conservatively, live conservatively, but don't let the idea of borrowing STOP you from proceeding
Make a five year plan, or 10 year plan to payoff, whatever suits and makes YOU comfortable. Know what kind of salary you need to make yourself "worth" your debt (certifications/externships to prep/even specialty area), know what kind of living budget you need to abide. And then after delineating these things - make sure your plan is YOURS and makes YOU comfortable (I reiterate this because I think its so important in financial planning to opt for something YOU can follow through with). Some of us wanna payoff REALLY fast and move on debt free, some of us are OK with pay 200 bucks a month until X date in order to keep taking annual family vacations. It's up to you, but I think there are ways to accomplish your career goals with a loan burden to deal with.
I'm taking out loans, not excessively, but it sure feels like a lot of money! (Esp. when you look at loan cost with interest - and DO look at that!). A career is an investment, a new porshe is not - and as someone pointed out - this is half the price, what a deal really :)

I agree about looking at the opportunity cost. I definitely took this into account when deciding to take the ADN route instead of the ABSN route. First, let me just say that in my area the ABSN is $50k and my particular ADN (at a school with a good reputation) is $5k. I know other people have mentioned that there is not much of a difference in cost where they live. In that case, I would go for the ABSN as well.

I am able to work part time and network while I am in school. You cannot work in ABSN 12 month programs.

I will not take out loans and will not be throwing money away in interest.

Around here, there is no difference in pay for a staff nurse if you have a different degree.

With the way the job market is out here, people are waiting a long time to get a job. It is easier for me to swallow waiting while not having any loans.

In the long run, it costs me more to go for the ABSN. I don't have loans for my BA in Economics, and won't have loans now. I do think if you have to take out loans to finish your education, do so. Like the previous poster said, education is an investment. When there are more cost effective routes available, however, I think it's smart to weigh the options. Everyone's situation is different, and I say go for wherever you get in first. If I had not gotten into the ADN program, I would have continued to apply to every other program in the area including ABSNs and Entry Level MSN programs. The opportunity cost of not going right away is high, so I say go wherever you get in first if it's not a huge tuition difference.

Good luck to you. No matter what, you are still going to be a nurse!