Over $300k in student loans - help.

[friendlyskies]

I am single, in my late 20s, and I have about $65,000 in private loans and $255,000 in federal loans. I was a minor when taking out the majority of those loans over 10 years ago, and basically at the behest of my parents, who said they needed the money for living expenses. I am no longer on speaking terms with them. I have consulted with a lawyer since, who was sympathetic but advised that legal costs and the drawn-out nature of the legal system would mean that I could end up with even more debt and it could easily take 8+ years to reach a resolution. I have decided against a lawsuit, especially since I have recently heard that my parents are in poor health (one has a terminal diagnosis).

I am a relatively new grad RN. The average starting salary here is about $58-60,000. I am completing an NP certification (paying out-of-pocket) and expect to complete it in 2 years, which will boost my earning potential. However, even if I live as a pauper, I will spend at least 10 years paying off the loans.

I have spoken to several advisors and PSLF is an option if I continue working for a nonprofit hospital or other organization for 10 years, which is still a long time, but at least it frees up some money for retirement/investment/etc. If PSLF fails, I can use that money towards paying off the loans. It's obviously a risk. Does anyone have any other ideas on what I could do? I've looked into the NHSC repayment option but I'm not sure it would help much, since most of my loans are not from nursing school.

I'm having a hard time dealing with the reality of this burden. I want to do normal things like save for retirement, maybe get married, buy a small house. It feels like I'll be losing 10 years of my life to loans that my parents used. It really sucks.

[MikeyD, BSN]

On 8/18/2020 at 10:32 AM, friendlyskies said:

I am single, in my late 20s, and I have about $65,000 in private loans and $255,000 in federal loans. I was a minor when taking out the majority of those loans over 10 years ago, and basically at the behest of my parents, who said they needed the money for living expenses. I am no longer on speaking terms with them. I have consulted with a lawyer since, who was sympathetic but advised that legal costs and the drawn-out nature of the legal system would mean that I could end up with even more debt and it could easily take 8+ years to reach a resolution. I have decided against a lawsuit, especially since I have recently heard that my parents are in poor health (one has a terminal diagnosis).

I am a relatively new grad RN. The average starting salary here is about $58-60,000. I am completing an NP certification (paying out-of-pocket) and expect to complete it in 2 years, which will boost my earning potential. However, even if I live as a pauper, I will spend at least 10 years paying off the loans.

I have spoken to several advisors and PSLF is an option if I continue working for a nonprofit hospital or other organization for 10 years, which is still a long time, but at least it frees up some money for retirement/investment/etc. If PSLF fails, I can use that money towards paying off the loans. It's obviously a risk. Does anyone have any other ideas on what I could do? I've looked into the NHSC repayment option but I'm not sure it would help much, since most of my loans are not from nursing school.

I'm having a hard time dealing with the reality of this burden. I want to do normal things like save for retirement, maybe get married, buy a small house. It feels like I'll be losing 10 years of my life to loans that my parents used. It really sucks.

If you eventually qualify for military service as a nurse I would do it. Active duty is 40K/yr in loan repayment. You do have to have experience to apply and work in certain settings but you could make a big dent doing one term of service. Either way best of luck to you, And I definitely prescribe to the Dave Ramsey plan which is a great plan for tackling debt.

[LovingLife123]

21 hours ago, CaffeinePOQ4HPRN said:

For everyone hung up on the costs... did your families help you, are you independently rich? Because to those of us who had to struggle on our own it's not surprising to rack up this kind of debt. For example, my brother is a Doctor of Chiropractic (D.C.) in Canada. The requirements to become a D.C. here are as follows:

• 4 year undergraduate in health sciences/natural sciences/STEM (domestic tuition approx. $50-65k total, not including books/lab/ancillary fees fees)...for reference, my BScN cost me over $65k in Canada
• 4 year Doctor of Chiropractic Program (domestic tuition approx. $30k/per year-$120k total)

When the 8 years of schooling is complete, you're well over $200k in student loan debt (not including interest rates, living/medical expenses...rent, food)...

Give the OP a break.

There is a huge difference between the debt of a DO and student nursing debt. My sister is a PT and has her doctorate. She owed over $200k when she graduated college. Her earning potential vastly outweighs mine.

I think what all of us are curious about is how did her parents get their hands on money intended to go to a college. It sounds like there was fraud involved. What BSN program costs that much money?

[rzyzzy]

21 hours ago, CaffeinePOQ4HPRN said:

This is what I am talking about when I say give the OP a break. This isn't curiosity, comments like this are completely judgemental and reeks of privilege.

I live in Canada... but from some exhaustive research (because I almost attended school in the US) and interviewing nursing colleagues in the US... I know domestic tuition fees for US citizens to earn a Bachelor of Science degree in nursing (BScN) can range anywhere from $40,000 to well over $100,000 each year and typically takes four years to complete. The OP also has an MSN degree, plus the OP would have had other things to pay for like living expenses (food, clothes, medical), rent, books, supplies, etc...

All things considered: $300k in debt unfortunately makes sense. It's really not that difficult to comprehend. I feel sorry for the OP, and I hope they pull through.

It’s possible to incur insane levels of debt in the US, but not “normal”, and it’s also entirely possible to graduate without spending money anywhere like that. Your cost range of “$40-$100k” per year - completely blocks out community colleges - and my community college had dual-enrollment plans and articulation agreements so no money or time are wasted. Or dollars.

I got my ADN for about a grand a semester in tuition, and a grand in books. Every class would transfer to every college in the state without a hassle & out of state colleges aren’t that big of a deal either.

my point here isn’t to beat on the O.P., just to counter the ”HGTV syndrome” where statements like “a basic kitchen remodel should cost $50,000, if you just paint the cabinets “.

Most Americans don’t live like that, and most RN’s don’t have anywhere near the kind of debt mentioned here.

[HiddencatBSN, BSN]

10 hours ago, rzyzzy said:

It’s possible to incur insane levels of debt in the US, but not “normal”, and it’s also entirely possible to graduate without spending money anywhere like that. Your cost range of “$40-$100k” per year - completely blocks out community colleges - and my community college had dual-enrollment plans and articulation agreements so no money or time are wasted. Or dollars.

I got my ADN for about a grand a semester in tuition, and a grand in books. Every class would transfer to every college in the state without a hassle & out of state colleges aren’t that big of a deal either.

my point here isn’t to beat on the O.P., just to counter the ”HGTV syndrome” where statements like “a basic kitchen remodel should cost $50,000, if you just paint the cabinets “.

Most Americans don’t live like that, and most RN’s don’t have anywhere near the kind of debt mentioned here.

This is true. But the OP’s parents were also abusing them financially. So in the context of being in an abusive situation, which isn’t “normal” it makes sense that their educational expenses were exorbitant. I spent $50k on a liberal arts degree because I was advised a Bachelor degree would be worth it by people who got Bachelor’s degrees 40+ years ago when the cost of a private school education compared to entry level jobs with any old BA was very different. No one was taking advantage of me and pushing me to take out loans for their living expenses and they thought they were giving me good advice.

[TT IS]

If consolidating your loans or going forward with a lawsuit is not possible and you still are at odds on what to do...you may want to look into RN military service to pay off all students loans.

Joining the Airforce or Army reserves as a RN and fulfilling your years of service required, the military will pay off all your student federal loans. You will be a medical officer fulfilling RN and military job duties to servicemen and their families. Greay sign on bonuses, officer pay and federal student loan repayment.

[londonflo]

On 8/18/2020 at 9:32 AM, friendlyskies said:

I am single, in my late 20s, and I have about $65,000 in private loans and $255,000 in federal loans. I was a minor when taking out the majority of those loans over 10 years ago, and basically at the behest of my parents, who said they needed the money for living expenses.

Friendly skies,

I am sorry you owe so much. Was it for an undergraduate degree (you said you were a minor and am now in your late 20's)? You mentioned you just completed an MSN entry into nursing practice. Did you have a lot in unsubsidized undergraduate loans and defer payment? There definitely is a cap on student loans so, either you deferred payment and/or added to it for graduate school tuition. Either way you are going to have to increase your earnings to have any kind of lifestyle other than abject poverty. You are going to need to seek out OT - and I would suggest you rethink NP plans. Time you are working on school can be spent making money. Believe me, I love education and maneuvered to stay in an educational environment as long as possible. But if you have any chance of moving ahead you need to pay big time on those loans - Aren't you paying interest currently?

I have watched Dave Ramsey on you tube and he does make sense for some things, I really feel he is negative on higher education beyond an entry into practice it seems to me. But I think his advice (increase income and pay down ASAP would be best)

I did see in April you got sick and were unable to work. Can you give us an update? I sincerely hope you are well and working on your "debt snowball."

Aren't the loans figured into your credit report? And where are you getting the tuition money now for your NP certification since your gross salary is $60,000? And if you are considering a consultation service to get advice for handling your finances, please do not consider a service with a fee upfront.

[londonflo]

On 8/19/2020 at 5:23 PM, murseman24 said:

I would set up an appointment with Travis at studentloanplanner.com.

I love learning about new resources because I still hear from students. So I wanted to learn about thestudentplanner.com. There was little information on the website besides what it cost for their service but I watched the video ....it is an advice service for investing. I watched a preview video and he never spoke about how to pay off loans -- only "go from 6 figure debt to 6 figure savings". Or did I miss how you pay off your loans?

[Hoosier_RN, MSN]

2 hours ago, londonflo said:

Friendly skies,

I am sorry you owe so much. Was it for an undergraduate degree (you said you were a minor and am now in your late 20's)? You mentioned you just completed an MSN entry into nursing practice. Did you have a lot in unsubsidized undergraduate loans and defer payment? There definitely is a cap on student loans so, either you deferred payment and/or added to it for graduate school tuition. Either way you are going to have to increase your earnings to have any kind of lifestyle other than abject poverty. You are going to need to seek out OT - and I would suggest you rethink NP plans. Time you are working on school can be spent making money. Believe me, I love education and maneuvered to stay in an educational environment as long as possible. But if you have any chance of moving ahead you need to pay big time on those loans - Aren't you paying interest currently?

I have watched Dave Ramsey on you tube and he does make sense for some things, I really feel he is negative on higher education beyond an entry into practice it seems to me. But I think his advice (increase income and pay down ASAP would be best)

I did see in April you got sick and were unable to work. Can you give us an update? I sincerely hope you are well and working on your "debt snowball."

Aren't the loans figured into your credit report? And where are you getting the tuition money now for your NP certification since your gross salary is $60,000? And if you are considering a consultation service to get advice for handling your finances, please do not consider a service with a fee upfront.

Student loans, both subsidized and unsubsidized, show up on a credit report

[murseman24, MSN, CRNA]

On 8/23/2020 at 12:54 PM, londonflo said:

I love learning about new resources because I still hear from students. So I wanted to learn about thestudentplanner.com. There was little information on the website besides what it cost for their service but I watched the video ....it is an advice service for investing. I watched a preview video and he never spoke about how to pay off loans -- only "go from 6 figure debt to 6 figure savings". Or did I miss how you pay off your loans?

If you're looking for a resource you may want to check out the pdf book I posted previously. He is a widely cited expert on student loans and has been featured on whitecoatinvestor and financial independence groups. He's generally thought of as trustworthy. If you owe a lot and make a little it would probably be prudent to pay for a consultation

[londonflo]

14 hours ago, murseman24 said:

If you owe a lot and make a little it would probably be prudent to pay for a consultation

what struck me is that you have to pay right after your "consultation". They know you're probably broke and don't want to until you try their suggestions and get back on your feet.

Quote

Consult Policy: The 0-200k household debt consult rate is $395. We email you an invoice after the call that's due on receipt. You can pay right in your inbox by ACH or credit card. Please give us 24 hrs notice if you need to reschedule or cancel. *

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Do you throw everything you have at your debt, and

Push off buying a house for ten years

Convince your spouse to move to a studio apartment in a sketchy part of town

Decide not to even talk about having kids until you’re well into your 40s...

Just so you can put all your money toward your student loan debt?

Or Hire Student Loan Planner to Figure it Out For You

And if you want to invest too, they are CFPs and pay $399 for that program. I'm leary.

[Kooky Korky, BSN, RN]

13 hours ago, londonflo said:

what struck me is that you have to pay right after your "consultation". They know you're probably broke and don't want to until you try their suggestions and get back on your feet.

And if you want to invest too, they are CFPs and pay $399 for that program. I'm leary.

There is no need, IMHO, to pay someone to tell you what you can likely figure out on your own.

You cut way down on your expenses and you pay off your loans.

You get roommates to share the rent. You eat things like peanut butter and other inexpensive but nutritious things.

You do not have kids before you can really afford them. You use public transportation or have a very inexpensive car. 2nd hand clothes.

You do not lend or give money to other people, especially your parents, who seem to have done you dirty.

You talk to a couple of lawyers to see if you can make your parents repay you. Not saying you will take legal action, but it would be interesting to know. Maybe you will take action against them.

You perhaps consolidate your debt.

You get a no-interest credit card. Just Google this topic.

You work some overtime. Don't kill yourself with work, just work a little OT.

Consider the military, PHSC, IHS, perhaps Peace Corps.

Read the recommended authors for free via your public library. Or perhaps the library at a local church.

Good luck. You can overcome.

[Hoosier_RN, MSN]

7 hours ago, Kooky Korky said:

There is no need, IMHO, to pay someone to tell you what you can likely figure out on your own.

You cut way down on your expenses and you pay off your loans.

You get roommates to share the rent. You eat things like peanut butter and other inexpensive but nutritious things.

You do not have kids before you can really afford them. You use public transportation or have a very inexpensive car. 2nd hand clothes.

You do not lend or give money to other people, especially your parents, who seem to have done you dirty.

You talk to a couple of lawyers to see if you can make your parents repay you. Not saying you will take legal action, but it would be interesting to know. Maybe you will take action against them.

You perhaps consolidate your debt.

You get a no-interest credit card. Just Google this topic.

You work some overtime. Don't kill yourself with work, just work a little OT.

Consider the military, PHSC, IHS, perhaps Peace Corps.

Read the recommended authors for free via your public library. Or perhaps the library at a local church.

Good luck. You can overcome.

Yes, there are many ways to reach ridding yourself of debt. They're not popular or fun, but worrying constantly about finances isn't either. @Kooky Korkyhit the nail on the head