Over $300k in student loans - help.

Nurses General Nursing

Published

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.

Specializes in orthopedic/trauma, Informatics, diabetes.
On 8/19/2020 at 9:27 AM, Hoosier_RN said:

Something is not right about this. $255k in federal loans (?) to a minor (?). Parents are not co-signors?

Max federal student loan amount is less than a third of that for undergraduates, half that for grad.

Then things have changed, when I was in undergrad the first time, I was able to borrow more than 1/3 of 225K. I have 2 BS and 2 masters.

1 Votes
Specializes in orthopedic/trauma, Informatics, diabetes.
On 8/19/2020 at 7:00 AM, Jedrnurse said:

You have $150K in loans and you're (I infer) taking on more debt because you have to put your oldest through college? I don't understand this way of thinking.

Not sure how you inferred that I am taking on more debt. I am paying cash for my son to go to community college (and he is living with us, and he can get insurance through my husband until he is 26).

I was just hoping he could get a little money for tuition (I got a Pell grant).

1 Votes
Specializes in anesthesiology.

good expert advice isn't and should not be free, that' s how you know you're not being sold up the river. Any financial advice should be fee for service not commission based to avoid conflicts of interest, otherwise you're speaking to a salesman. Basic financial principles can be learned and put into practice. The intricacies of specific tax laws as they apply to the IRS tax code is not basic Dave Ramsey elementary advice. To have that much debt and not be making >300k on a physician's salary I'd be willing to wager you'd save tens of thousands of dollars by speaking to a specialist in this area. The debt to income ratio here is enormous and every loophole one could find may end up saving you a ton of money. There are specifics to how you file your taxes being HOH and married and how that affects your IBR program among other things that an expert could use to save you many thousands over the life of your loan. I can tell you they will most likely have you go for debt forgiveness after 20 years with the goal of reducing your payments as much as legally possible. Which strings they pull to achieve this goal is the question. Good Luck. The pdf book I posted is a great start if you're just looking for general advice and how the different programs work.

Specializes in anesthesiology.
20 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.

none of this addresses the question nor is it anything that's not obvious to someone who is old enough to hold an actual job, whether or not they put it into practice is different.

2 Votes
Specializes in oncology.
1 hour ago, murseman24 said:

The pdf book I posted is a great start if you're just looking for general advice and how the different programs work.

Thank you for the reference. It is helpful to have a reference to refer to.

1 hour ago, murseman24 said:

Basic financial principles can be learned and put into practice. The intricacies of specific tax laws as they apply to the IRS tax code is not basic Dave Ramsey elementary advice. To have that much debt and not be making >300k on a physician's salary I'd be willing to wager you'd save tens of thousands of dollars by speaking to a specialist in this area. The debt to income ratio here is enormous and every loophole one could find may end up saving you a ton of money. There are specifics to how you file your taxes being HOH and married and how that affects your IBR program among other things that an expert could use to save you many thousands over the life of your loan.

When you get into dealing with taxes, I think it would be best to have a tax accountant or tax lawyer who can explain everything thoroughly to the IRS if you get audited. I am not sure the depth of the CFP curriculum deals with tax law. Being married to a CPA, I have incidentally overheard the horrible trouble someone can get themselves into when they start interpreting the tax code to improve their financial situation!

I am very glad you are happy with the studentloanplanner as that is the main thing. To make financial decisions one needs to have confidence in their CFP. Thanks again for the PDF

1 Votes

Girl, you NEED Dave Ramsey. He will change your life, there is hope.

as far as the 10 year working for a nonprofit and them forgiving your loan, thousands of people have applied for that and I believe it is like less than 10% are being excepted. It is literally a scam. Do not rely on that at all! $300,000 is a crazy amount of debt, however once you’re done with NP school you will have a really big shovel to dig your way out of the mess you made. As an NP you should be making around $100,000 a year. If you live frugally, you should be able to pay that off in about 4 years. This means not owning a brand new car, not going out with friends every weekend, not taking vacations that you can’t afford, not buying clothes or nice things, because you don’t have the money to do that. But once that weight is lifted off your shoulders and you’re debt free, it is an amazing feeling. It is so worth it and I know you can do it.

4 Votes

Holy cow. All the interest racking up on $300K! ? ? Are you sure you want to tack on more debt to become a NP?

4 Votes
Specializes in Peds ED.
1 hour ago, Hopesandsdreams said:

Girl, you NEED Dave Ramsey. He will change your life, there is hope.

as far as the 10 year working for a nonprofit and them forgiving your loan, thousands of people have applied for that and I believe it is like less than 10% are being excepted. It is literally a scam. Do not rely on that at all! $300,000 is a crazy amount of debt, however once you’re done with NP school you will have a really big shovel to dig your way out of the mess you made. As an NP you should be making around $100,000 a year. If you live frugally, you should be able to pay that off in about 4 years. This means not owning a brand new car, not going out with friends every weekend, not taking vacations that you can’t afford, not buying clothes or nice things, because you don’t have the money to do that. But once that weight is lifted off your shoulders and you’re debt free, it is an amazing feeling. It is so worth it and I know you can do it.

Public Service Loan Forgiveness is a different program than the HRSA Nursing Corps Scholarship.

Specializes in school nurse.
8 hours ago, mmc51264 said:

Not sure how you inferred that I am taking on more debt. I am paying cash for my son to go to community college (and he is living with us, and he can get insurance through my husband until he is 26).

I was just hoping he could get a little money for tuition (I got a Pell grant).

Ah, now I understand. I just couldn't imagine having that much debt to service and then having enough money left over in the budget to pay someone's tuition. Best of luck to you and your son!

1 Votes
Specializes in orthopedic/trauma, Informatics, diabetes.
8 hours ago, Jedrnurse said:

Ah, now I understand. I just couldn't imagine having that much debt to service and then having enough money left over in the budget to pay someone's tuition. Best of luck to you and your son!

Thank you! As a T1 diabetic, I think there are grants and scholarships for kids like him. If he can get, and stay on track, he might get academic money. He is very smart, but the giftedness can sometimes come at the cost of common sense (he is very Asperger's like)

The plan is to NOT get into any more debt. If he needs some for his last 2 years as a 4 year institution, it will have to be grants or the like. We are lucky here in NC, there are a lot of good schools in Eastern NC (UNC, Duke, NC State, ECU, etc) that might allow him to live at home.

17 hours ago, Hopesandsdreams said:

Girl, you NEED Dave Ramsey. He will change your life, there is hope.

as far as the 10 year working for a nonprofit and them forgiving your loan, thousands of people have applied for that and I believe it is like less than 10% are being excepted. It is literally a scam. Do not rely on that at all! $300,000 is a crazy amount of debt, however once you’re done with NP school you will have a really big shovel to dig your way out of the mess you made. As an NP you should be making around $100,000 a year. If you live frugally, you should be able to pay that off in about 4 years. This means not owning a brand new car, not going out with friends every weekend, not taking vacations that you can’t afford, not buying clothes or nice things, because you don’t have the money to do that. But once that weight is lifted off your shoulders and you’re debt free, it is an amazing feeling. It is so worth it and I know you can do it.

People not following directions because they can't read thoroughly doesn't make it a scam.

Johnny Tsunami and his 60k of debt tied to a B.A. in Community Wellness Studies that resulted in his working for a non-profit surf academy that fosters wave appreciation in the marginizlized sea-horses of color community was never going to make the cut.

The OP def needs a CPA.

Figure out the IRA situation - which is best for your circumstances. I believe traditional contributions reduce AGI, which would lower monthly payment amounts under IBR.

Specializes in oncology.
37 minutes ago, DannyBoy8 said:

People not following directions because they can't read thoroughly doesn't make it a scam.

99% of those turned down can't be because they did not read the directions.

Quote

The department's recent report card for PSLF, the program's first, was a revelation, describing a scale of dysfunction that surprised many in the loan industry. It found that, over the past year, nearly 29,000 applications for Public Service Loan Forgiveness were submitted and processed. Of those, 99 percent were denied, the vast majority for "not meeting program requirements."

https://www.npr.org/2018/10/17/653853227/the-student-loan-whistleblower

Could you elaborate on your statement? I know you meant it to be funny, but I am assuming you based it on accurate examples or info you have.

1 Votes
+ Add a Comment