Question about student loan-tuition reimbursement


OK, here's my question:

Should I finance my RN degree with a 2nd mortgage on the house, or should I take out a student loan? If I accept a job that offers tuition reimbursement, will they reimburse ME as opposed to my student loan?


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Specializes in ICU, ER, HH, NICU, now FNP. Has 23 years experience.

Tuition reimbursement generally only applies if you already employed by the company WHILE you are going to school. They pay as you go sort of thing in exchange for you agreeing to stay there another 6 months for every semester they pay for.

The way you get reimbursed as a new employee is through a sign on bonus or loan repayment agreement. There are also programs available through the govt for loan repayment if you agree to work in high need areas. A sign on bonus goes straight to you, other programs may work differently.

Specializes in Rural Health.

I've financed my education through rural health intitive loans through the state. I receieve a certain amount each fall. It comes directly to me, I can spend it however I would like. For this I am required to work full time for 4 years in a high need area as an RN, which is everywhere I live. At the end of 4 years, the entire amount owed is forgiven.

I also can apply through my employer for a scholarship. I can receive $2000 per semester, paid directly to my school. I also can receieve tuition reimbursement, which is $1500 per year, which is paid directly to me through my employer after I give them a reciept for schooling. I can also receieve, when I graduate, $167 per pay period for 2 years as a loan forgivness program. I can take all the above or any combination thereof for schooling from my employer. They'll also pay for furthering my education through any of the above routes (ie, it doesn't stop at just 1 degree).

The scholarship requires a contract to work (6 months for every semester they pay for), the tuition reimbursement does not (just requires that you work there when you ask for the $$$). The loan forgiveness program is new starting in Jan. and basically you work as as long as you want a payment (for 2 years), if you quit, the payments stop. The scholarship program is the only one that actually pays to the school, the rest pay to you.

There is another facility that is offering a monthly payment for schooling or living, etc (it's around $1500 per month).....the requirement is 48 hours per month while in school and then a 4 year contract when you graduate.

I'm no expert, but I believe that a student loan will be at a lower rate of interest than a second mortgage. Student loans also have other advantages over a second mortgage -- like they can be deferred if necessary and your home is not being used as collateral.

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