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.
I am in favor of this as long as the OP enjoys good health, 10 years employment in applicable companies/positions, makes 120 separate on time payments and that Congress does not substantially change the program or eliminate it. As always, Congress is the wild card.
the IBR schedule is 20 years, not 10, that is PSLF. Mathematically you just pay less this way, plain and simple.
I made an account here just to comment on this. It breaks my heart and makes me angry as hell.
I was an emancipated minor and I went through hell- twice- at the hands of horrible people. My parents did the same sort of thing to me financially as OP, but on a waaayyyyy smaller scale. There was also physical and verbal abuse, among other things. I got a lawyer, moved out and was on my own at 15.
I moved into an “apartment” (it was bad) and had an agreement to work for the person who owned it in exchange for really cheap rent- it was hard to find a place to rent so young (early 90s). I had a good relationship with this person and the arrangement went well, until they got into drugs. VERY long story short- I moved out of state as soon as I was out of high school. In the process, some of my credit cards and personal checks were stolen and thousands in debt was racked up in my name by the “landlord.” This person was a single parent and I didn’t have the heart to file criminal charges (much like OP), so I paid most of it back and the bank actually helped me with a lot of the fees that were incurred (back when Wells Fargo was a great bank). I somehow maintained good credit through all of this crap, working three jobs and making payments until I got it ALL taken care of.
A few years later, my spouse was diagnosed with cancer (married at 23). Being young and working crappy jobs, we had no insurance. We didn’t have any savings and he couldn’t work for a year during chemo and surgeries and radiation. In the end there were hundreds of thousands in bills. We paid every extra dollar for a couple years and then a wise financial counselor called us idiots and marched us to a bankruptcy attorney, and we filed at the age of 26. It was terrible, having crawled out of so much debt, just to be defeated in the end.
Morale of the story- it all worked out, we have owned three homes, we have great credit scores and a happy life. Bankruptcy isn’t the end. Go file! Get rid of what you can. Get into a loan forgiveness program in a small, inexpensive place to live and ride it out. Most people don’t buy homes until their mid to late 30s anyways! Immediately after filing, get one of those prepaid crappy credit cards and get right back to building credit. Buy gas, pay it off, repeat. It goes by fast! Don’t live so frugally that you don’t live at all. Take a cheap vacation every year or two and go do inexpensive things Iike camping and hiking. You can’t let this define your life. You need to have something to look forward to.
Side note: I owe a lot in student loans as well, due to all of the above. I couldn’t go to school until I was 26. I live in a small town and am doing the same as you. Chipping away. Not everyone has awesome parents and inheritance and college funds. Some of us come from nothing and are broken, but somehow find a way to pick up the pieces and move on into better lives. Be proud of yourself! You are breaking the cycle. You have lived through so much more than most and are likely one tough cookie because of it.
Everyone: this is not OPs fault. There are so many crappy, manipulative parents in this world. She did what she could with what she had. Questioning her circumstances doesn't help her with anything. Be supportive!
For those wondering: I have little-to-no communication with my parents or the “landlord.” My husband has been in remission for just over 20 years. We are still married.
I made an account here just to comment on this. It breaks my heart and makes me angry as hell.
I was an emancipated minor and I went through hell- twice- at the hands of horrible people. My parents did the same sort of thing to me financially as OP, but on a waaayyyyy smaller scale. There was also physical and verbal abuse, among other things. I got a lawyer, moved out and was on my own at 15.
I moved into an “apartment” (it was bad) and had an agreement to work for the person who owned it in exchange for really cheap rent- it was hard to find a place to rent so young (early 90s). I had a good relationship with this person and the arrangement went well, until they got into drugs. VERY long story short- I moved out of state as soon as I was out of high school. In the process, some of my credit cards and personal checks were stolen and thousands in debt was racked up in my name by the “landlord.” This person was a single parent and I didn’t have the heart to file criminal charges (much like OP), so I paid most of it back and the bank actually helped me with a lot of the fees that were incurred (back when Wells Fargo was a great bank). I somehow maintained good credit through all of this crap, working three jobs and making payments until I got it ALL taken care of.
A few years later, my spouse was diagnosed with cancer (married at 23). Being young and working crappy jobs, we had no insurance. We didn’t have any savings and he couldn’t work for a year during chemo and surgeries and radiation. In the end there were hundreds of thousands in bills. We paid every extra dollar for a couple years and then a wise financial counselor called us idiots and marched us to a bankruptcy attorney, and we filed at the age of 26. It was terrible, having crawled out of so much debt, just to be defeated in the end.
Morale of the story- it all worked out, we have owned three homes, we have great credit scores and a happy life. Bankruptcy isn’t the end. Go file! Get rid of what you can. Get into a loan forgiveness program in a small, inexpensive place to live and ride it out. Most people don’t buy homes until their mid to late 30s anyways! Immediately after filing, get one of those prepaid crappy credit cards and get right back to building credit. Buy gas, pay it off, repeat. It goes by fast! Don’t live so frugally that you don’t live at all. Take a cheap vacation every year or two and go do inexpensive things Iike camping and hiking. You can’t let this define your life. You need to have something to look forward to.
Side note: I owe a lot in student loans as well, due to all of the above. I couldn’t go to school until I was 26. I live in a small town and am doing the same as you. Chipping away. Not everyone has awesome parents and inheritance and college funds. Some of us come from nothing and are broken, but somehow find a way to pick up the pieces and move on into better lives. Be proud of yourself! You are breaking the cycle. You have lived through so much more than most and are likely one tough cookie because of it.
Everyone: this is not OPs fault. There are so many crappy, manipulative parents in this world. She did what she could with what she had. Questioning her circumstances doesn't help her with anything. Be supportive!
For those wondering: I have little-to-no communication with my parents or the “landlord.” My husband has been in remission for just over 20 years. We are still married.
“Breaking the cycle” wisest words ever. Thank you for your post. ❤️
Good Lord! I thought I was bad with my $150K. I have started the Public Service Loan Forgiveness Program.
I am 56. It will take me 10 years to complete this program, which, ideally, would let me retire at 66 with no loan payments. My issue is that I have been a professional student for 20 years and one bad mistake going to a private university (a different field). The saving grace is that all of mine are federal loans which can be included in PSLF. I am not sure if your private loans would be.
For private loans, can you claim bankruptcy. I cannot with the Fed student loans.
I was able to get a reduced payment by filing married/separate. I wish they would educate students better about the consequences of student loans.
I am trying to raise 2 special needs kids and I am having to put the oldest through college as he doesn't qualify for any help b/c I make too much money. It's all a racket.
Good Luck! I wish you all the best
WOW! It almost sounds like you wrote MY story, or I wrote yours. LOL. I too thought mine was bad. Mine may be slightly different than yours, but very similar. I currently owe 108k. I too made the same mistake, as a young adult, of going to a private university for a degree in another field. I also feel that, not only do they not educate you about the perils and pitfalls of student loans, but they actually encourage young people to take out as much as possible. They say, "don't worry about that now. When you get your degree, you will be making enough money to pay that back, and the interest rates are practically nothing." Practically nothing!!?? Mine is 8.5%!! That's a LOT!! And the interest capitalizes so it becomes part of the principal, like a credit card, and it just keeps going up and up. Add that to all the deferments and forbearances, and my balance just kept getting bigger and bigger. I see no way out of this right now. I owe more in SLs than I do on my house! I will have to look into the PSLF. I work in an inner city, low income, school district as a school nurse.
Good luck to you mmc and to the OP. We've all got a tough road ahead. It's definitely designed to keep you in debt.
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.
I totally agree with you caffeinePOQ4HPRN. Not everyone can ONLY take out what they need to pay for school. I got pregnant at 19 and my son was born right when I turned 20. I worked 32 hrs per week, 3rd shift as a CNA, then went to school when I got out of work in the morning. I had to pay rent, food, car insurance, utilities, health insurance, etc. You all don't need me to tell you about the cost of living, and caring for an infant, as a single mom, on the salary of a CNA, while going to school. So yes, it was VERY tempting to take that extra money to help out with my bills, clothing for my child, medical expenses, child care costs, etc.
My guess is that OP also deferred some of her loans, which means that interest kept accruing and capitalizing. That's what happened in my case. And I don't know where anyone gets the idea that the interest rate on student loans is good. Mine is 8.5%. I don't consider that good at all. So, yes, it's easy to sit behind a computer screen and judge, because that's not what YOU would do, but unless/until you are in someone else's situation, you have no idea what you would do. Thank you for your compassion CaffeinePOQ4HPRN.
After paying rent, car expenses, health insurance, food and debt payment from the net income I am not sure there would be anything left for retirement planning and home ownership. It depends on where the OP lives. Income based repayment with the PSLF may be the only option. Let's hope that the 10 years passes with good health, secure employment and the continued existence of the PSLF. When the OP is in her late 30's she would still have time to address her retirement and building equity.
Expecting that debt to be paid off in 10 yrs is crazy. That's 2500.00 per month on a monthly salary of 5k before taxes. That leaves her almost nothing to live on. Now, for the PSLF program, we have to assume she can get a job that meets all the criteria. It can be done, but man. I think I would go see a lawyer and see what my options are. In fact, my SL debt is far less and I think that's exactly what I am going to do.
Expecting that debt to be paid off in 10 yrs is crazy. That's 2500.00 per month on a monthly salary of 5k before taxes.
I specified an income based payment plan in my post. Hopefully that will be less.
We are in a higher ED crisis. These high tuition costs are going to hurt anyone who goes to college except the rich. I remember when the competition for students made a sophisticated sports center a must. Other luxury perks have been added. Surely graduating from these universities must cause a real let down on the living conditions of its graduates!
After teaching in a private BSN college, I joined a community college. There were very different living situations between the two student bodies. Those in the CC worked almost full time during school with child care a necessity. Most had a time lapse from when their prior education stopped and then they began taking the pre-requisites.
The BSN program was the final 2 years of a nursing program (a 2+ 2 program). Students could go to CC, 4 yr public college or 2 & 4 yr private college. The final price tag for all 4 of their years tuition did vary depending on where they did their pre-reqs. Many students were living at home with their parents and many were applying right out of high school.
Things are getting difficult for the colleges who do not have a good donor base or endowment. A college in the next town/city just permanently closed. It was known it had money problems for years but it had an excellent academic reputation. It's nursing program was purchased by a another college in the town (they bought everything (sim lab etc), accepted all the students and gave contracts to the faculty). It is great that the students will be able to continue in the curriculum they started.
I worked all through school and paid for my first three Associates degrees out of pocket. I took out small loans for my RN-to-BSN to cover what my employer didn't, and I paid the loans off quickly. I joined the Army and used Army tuition assistance for my first MSN while on active duty and my GI Bill for my second MSN after I left the service. I am so grateful to not have student loan debt! My husband is another story, haha. He did save his GI Bill for much of medical school to minimize his loans, but at least his earning potential will increase out of residency.
I know others have mentioned military service with loan repayment, and that would probably erase a good chunk of the debt. Definitely worth looking into because active duty would also come with a housing allowance and free health coverage, so you keep more of your pay and can put it toward the loans.
This thread is full of excellent information! Thanks to everyone who contributed.
headofcurls, BSN, RN
136 Posts
Girl go take these Covid contracts!