New RN w/$99k debt - Pay Off Plan

[sozo]

FYI - seems like good advice; agree or disagree? anything left out one should consider?

Financial planner Deborah Levenson designed a three-part plan that would help newly licensed registered nurse Amanda Johnson pay off her $99,000 school-loan debt more quickly while still having enough money to build an emergency fund and save for retirement.

http://www.boston.com/business/personalfinance/articles/2010/04/25/three_part_strategy_should_ease_nurses_student_loan_debt/

[llg, PhD, RN]

Geez, lots of negativity on this thread. If the lady met with a financial planner and she thinks it's doable, then it might be....doable.

Perhaps some of the Negative Nellys should invest in a personal financial planner and figure out a way to pay their loan instead of stating how impossible it is. You shouldn't be comparing your situation to this woman anyway. Everybody is different. This lady could be living in a shack with her boyfriend for all we know or she's living in a nice place and her boyfriend is footing the bill. Who knows? She has no kids and if she's disciplined she can do it.

Nothing's impossible if you put your mind to it.

People aren't saying that it's impossible -- just that it is not going to be as easy as this article suggests. This article doesn't talk about the sacrifices the subject is going to have to make at all. The article makes everything seem wonderful -- boyfriend, new car, great job with tremendous security, etc. It makes it seem like a very desirable lifestyle. Young people reading such an article are likely to get an overly optimistic picture of the subject's situation and be totally unprepared for the realities of the sacrifices that will have to made to pay off that debt.

Yes, for some people, it is do-able ... but only with great discipline and sacrifice. Not everyone can do that and the article did not discuss that all.

What happens if she finds herself in a job that is not working out and faces a few weeks (or months in this economy) of unemployment? What happens if she and her boyfriend break up and she finds herself without a roomate to help pay for an apartment? What happens if she gets married and wants to start a family -- and move to part-time employment? Or the boyfriend gets a job elsewhere and she has to move if they want to stay together - and she has trouble finding a good job in the town they move to? etc. etc. etc. Life happens. Her financial situation doesn't give her much ability to handle any of the setbacks that typically happen in life.

Not all financial planners are created equal. Hers seems to think that nurses are virtually guaranteed good jobs, which shows you how ill-informed she is. Keep in mind that it was a lot of financial planners who said it was OK to buy a house with no down payment, get an interest-only mortgage, and have undiversified investment portfolios. People who followed the advice of "those" financial planners lost big time in the current recession. Those people who have been more conservative with their financial affairs and weathered this crisis much better.

[Katie5]

Why would anybody buy a new car if you're in debt?You cannot keep up with the Joneses if you're going to be miserable.

[surferbettycrocker]

it surprises me how quickly the posters are to judge this person. its her debt, not yours. its also funny to me how people are so quick to balk at 'student loan debt' as irresponsible--for what its worth that degree got her into a career with many pathways. people sign on the dotted line for six figure mortgages they cant afford but thats called 'home ownership' an 'investment' not 'debt' or irresponsibility.

some people see education as investment and dont want to go the adn route necessarily. is that so wrong? dont flame me its just my 2cents:down:

[Jules A, MSN]

it surprises me how quickly the posters are to judge this person. its her debt, not yours. its also funny to me how people are so quick to balk at 'student loan debt' as irresponsible--for what its worth that degree got her into a career with many pathways. people sign on the dotted line for six figure mortgages they cant afford but thats called 'home ownership' an 'investment' not 'debt' or irresponsibility.

some people see education as investment and dont want to go the adn route necessarily. is that so wrong? dont flame me its just my 2cents:down:

i do see education as an investment however that doesn't justify making what i feel are irresponsible decisions by racking up debt and "don't want to go the adn route" is all well and good if you can afford to get your bsn and miss several years of rn work in the meantime. like you said it is her business except when she files for bankruptcy or whines about how rough her life is while driving that brand new car. sorry i can't muster much sympathy. fwiw i absolutely do think taking out a mortgage for a home you can't afford is irresponsible. part of growing up is making sacrifices.

[want2banurse35]

it surprises me how quickly the posters are to judge this person. its her debt, not yours. its also funny to me how people are so quick to balk at 'student loan debt' as irresponsible--for what its worth that degree got her into a career with many pathways. people sign on the dotted line for six figure mortgages they cant afford but thats called 'home ownership' an 'investment' not 'debt' or irresponsibility.

some people see education as investment and dont want to go the adn route necessarily. is that so wrong? dont flame me its just my 2cents:down:

Plus some people cannot get into ADN programs. I know the ADN programs in my area have so many applicants, you are lucky to get in. I know people that have been trying to get into them for 5 and 6 yrs.