Scared of loans

Asystole RN · Aug 12, 2016

When I did the cost/benefit analysis of education I considered my current average annual earnings compared to my potential average annual earnings.

At the time as a CNA I was making about $25,000 on average a year. I figured that on the lower end I would be making about $60,000 a year as an entry level RN. My school cost me about $20,000. In the first year of working as a registered nurse I would be +$15,000 not including interest to be paid back. I have sense gone back to school but my income increases have been well worth the investment.

Run the numbers and see where you fall.

EllaBella1, BSN · Aug 12, 2016

I've literally been in your exact position. I started out in an expensive ABSN program (NYU to be specific), and after one semester I had a "what am I doing" moment and withdrew. I applied to several state schools, and finished my BSN in another accelerated program that cost me $18,000 total. I have several degrees though and loans from each, so my loan balance ended up being high too. I would suggest running a loan repayment calculation to see roughly what your monthly payments would be, and then looking at that vs potential income. Also, would they be federal loans or private? It makes a big difference in repayment options. I can tell you that my loan balance is higher than that and it sucks to see so much of your monthly income go to loans. That said I make enough to comfortably pay it, save for retirement, put some in savings and have spending money left over.

tanac · Aug 12, 2016

Hi Asystole RN, BSN,

Thank you for your input! I was running some of the numbers for loan repayment and depending on how much I got paid it seemed doable but hard, like my standard of living would not improve much and not be able to save. But you are right it is well worth it, just trying to minimize the expense if I can/should.

tanac · Aug 12, 2016

Hi EllaBella1, BSN,

Wow, 18k that's great! I wish I could find a program that cost that much! I'm glad that I'm not alone in this predicament. The loans I've been approved for are federal so far and with the the 10 year repayment calculator was like 700-800 dollars a month í ½í¹. But I guess depending on my salary it's not too bad. Yours isn't so there's hope!

CrunchRN, ADN, RN · Aug 12, 2016

That is pretty high. Regular programs are much less expensive and you may be able to get an employer that helps pay for getting an advanced degree.

joanna73, BSN, RN · Aug 13, 2016

If you're only making 2500 a month and it took you 6 months to find full time employment, paying 800 a month is high.

Consider all of your expenses, ability to save and have a life when deciding on the cost of borrowing.

SteelGrey · Aug 13, 2016

Life advice: go for the least amount of debt possible.

Even if it means starting your journey in an RN program at a community college. You can work while making your way through the various degrees and hoops by distance and have your employer help fund it.

Asystole RN · Aug 13, 2016

Life advice: go for the least amount of debt possible.
Even if it means starting your journey in an RN program at a community college. You can work while making your way through the various degrees and hoops by distance and have your employer help fund it.

Life lesson. Run the numbers.

Sometimes it is better to invest big and early for bigger gains later. For example, no point throwing away an income difference of $30,000 a year for 2 additional years of school resulting in a $60,000 loss just to prevent an additional $20,000 in loans. 2 additional years is also 2 additional years of experience either gained or lost.

In the long run time is your most valuable asset, sometimes it is better to pay more to gain more time to make more money.

AnnieOaklyRN, BSN, RN, EMT-P · Aug 13, 2016

Hi,

I am so glad to hear you are the thinking about the long term consequences of high student loan debt, as many people do not.

I can tell you that when I was in my early 20s back in 2001 I was going to go to a four year state university for my BSN, but after putting some thought into it and realizing I would accumulate about 70K in student loan debt I had decided against it. 1) I didn't feel I would earn enough as an staff RN to make that much debt worth it. 2) I wasn't even sure I would like nursing, turns out I am not that crazy about it. 3) I had other career options that were lower cost.

I made the right decision not to accumulate that much debt, but that was just the right decision for me at the time. I was working as an EMT and had a lot of flexibility (that job is the ideal job to get yourself through college). I decided to take some classes at community college and eventually I did my associates degree in paramedicine, and graduated in 2004. I went immediately into the ADN program in the fall of 2004, so all my gen eds were current, which saved me money and graduated in 2007 (I had to leave the program for a year because of a terminally ill family member). Fast forward to now, I have my RN-BSN, and work as a per-diem RN and a full time Paramedic. I make 92 K a year if you include OT and have 2500.00 left in student debt which will be paid off in about a month. I was able to work full time as a medic while putting myself through my RN-BSN, which meant I could do most of my school work at work during our down time AND I could adjust my income by working overtime in order to pay for the RN-BSN as I went along (total cost for that was around 11K). In the end I ended up with around 13K in student loan debt after I finished both associate degrees, but that was partially because I applied for as many scholarships I could get. That totaled around 8K over the course of both degree programs, and again that debt will be gone in about a month.

I am an advocate for people doing there ADN before BSN because nursing isn't for everyone and why invest 60 K or more in something you may not like when you can do it for about a 3rd of that by going to a community college. Yes, it may be harder to get a job with an associates, but it is possible. Work as an RN BEFORE you invest that much money and then you can go for your RN-BSN and chances are if you work in a hospital they may help pay for it.

As another poster eluded to, your take home pay after taxes and benefits may only be around 2500, maybe a little more. if you minus the 800 student loan payment that leaves you with 1700 for living expenses. Let's say you decide to rent an apartment, average rent will be from 800-1200 depending on the area, that leaves you around 700. Don't forget food and transportation costs (gas, car payment, repairs), clothing, utilities, hobbies/social life, retirement, etc.

Only you can decide what the best sequence is for you, but I hope my advice helps! I will say this board is full of people who went to nursing school, accumulated insurmountable amounts of debt, and now regret it! I have read it time and time again!

Good luck.

Annie

Ruby Vee, BSN · Aug 13, 2016

So I was accepted into entry level master program here in California. Pre-licensure portion is 18 months and tuition is $45k. Well with living expenses, I'm looking at having to borrow about $65-70k. Now that it's time to sign on the dotted line and accept the loan I'm getting cold feet. The cost is really making me struggle and I'm now wondering if I should've looked for less expensive schools. Maybe they won't be combo BSN/MSN but they may be cheaper. I'm just not sure what to do. I'd probably have to move out of state in order to pay less. For instance I found a ABSN program in Sioux Falls that costs $20k for tuition. But I'm nervous about getting in! For nurses, that are currently working, do you think the loan repayment I would on a 65k-70k is doable as a nurse?
Thank you! Any insight you can give would be appreciated!

I'm not sure I understand having to borrow money for living expenses. Can you not work during your program? Can you find less expensive living accomodations? Rent a room, move in with friends or family, whatever? I'd hate to start off with that much debt!

SororAKS, ADN, RN · Aug 13, 2016

If you do get loans, avoid private loans if possible. Instead look into Federal loans. You have much more flexible repayment options with Federal Student Loans than from a private institution.