Should I take out loans for nursing school?

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Here's my story: I have completed all the nursing pre-reqs, and am (hopefully) awaiting entrance to nursing school beginning early January 2011. I have been working full time and saving up money, and I am nearing the point where I have enough saved to pay tuition out of pocket for the next two years. However, I know that there are many other expenses (books, fees, car insurance, gas, medical insurance, etc) so I know that this money will not cover all of it. I am still living at home with my parents to keep expenses low. There is a good chance that I will work part time during the course of nursing school.

My question is this: I have heard that most hospitals will forgive loans of new graduates if you agree to work for them for a specified period of time - and if the hospitals agree to pay them off, wouldn't it be financially smart to max out the loans? (Since they would, in effect, be free money that I don't have to pay back.) Is there any reason not to have loans? (For example, can you get sign on bonuses that you wouldn't get otherwise, or raises or something of that nature?) I already talked to my financial aid office at my school, and they said I don't qualify for grants, only loans. If I did take out loans, they would most likely only be in the $5,000-7,000 range.

Would it be financially sound to take out these federal loans that I may or may not need, or to just try and scrape by on a part time job completely debt-free?

Thank you for reading my post, and I look forward to hearing everyone's responses!;)

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I've had loans throughout my whole time in school....without them I wouldn't be in school right now. Around here, you have to already be working for such hospital that has tuition reimbursement before they'll pay for your schooling. Also I believe you can take out any loan needed, meaning if you only need extra money for books, you can. Good luck!

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I think it makes sense to have a little cushion for books and unexpected school expenses, but I haven't heard of hospitals offering loan repayment in my area for a while. My state also canceled their loan repayment program too, so no, it doesn't make sense to max loans just because you think they will get paid back by your future employer.

Take what you need but don't go nuts.

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I think it makes sense to have a little cushion for books and unexpected school expenses, but I haven't heard of hospitals offering loan repayment in my area for a while. My state also canceled their loan repayment program too, so no, it doesn't make sense to max loans just because you think they will get paid back by your future employer.

Take what you need but don't go nuts.

Thanks, that's pretty much what I expected to hear. I really appreciate the advice of someone who has already been through it all!

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Specializes in Hospice / Ambulatory Clinic.

It depends on the rate really. Fortunately/Unfortunately federal loans now have fixed rates so what ever the rate is now is what it will always be. Mine from last year are 6.8% but the ones I took in 2004 have adjusted to 1.83% When the rate is that low its hard to argue against them so look at the rate for this year

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Can you get subsidized loans? If you can, I'd recommend those first and foremost. When I did my undergrad (5 years - 1 year extra due to change of major/school), I took out a total of 12k in subsidized stafford loans. I paid them back within a few years. As I had no parental support/couldn't live at home, loans mixed with the grants I got helped me get through school.

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If I were you, I would save my money. I just want to work at a hospital and help patients, that's all I want to do.

I don't care if they take out a lot of money to pay my loan.. as long as I have enough to live, that's fine.

I would save those money and get loan because you won't live for ever. Save those for a house and get subsidized loans. ^_^

KEEP saving

Good luck!

PS: I assume you might quit your full-time job? If so, that's OK.

^^

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Yes, I would be moving to part time at my existing full time job

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Yes, I would be moving to part time at my existing full time job

I hope you have decided to do the loan. However, someone told me not to do a loan before. It's up to you.

I am going to do loan because I don't have money. If I were you, I wouldn't probably do loan. I don't know, that's a hard decision.

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Kudos for you for saving up so much already. I wouldn't risk doing well in school over a few hundred dollars of loan but it isn't because the loans are as financially smart as they usually look. Those looks are based on assumptios.

What if you meet someone who graduates the same time you do and gets a job 400 miles away? What if you could get a job paying three times as much in that town? What happens if the only opening for new grads is in a department you detest or under a boss no one can stand to work under (including you)? What if all of the above happens at the same time? You might be able to break the contract, but will you be able to afford the penalty for doing so? Or afford it even if there is no penalty?

What if the hospital agrees to pay your loans and then goes bankrupt just before you graduate? What if you get a major medical problem and can't finish school?

All debt comes with a price. At the very least you will limit your options later.

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Kudos for you for saving up so much already. I wouldn't risk doing well in school over a few hundred dollars of loan but it isn't because the loans are as financially smart as they usually look. Those looks are based on assumptios.

What if you meet someone who graduates the same time you do and gets a job 400 miles away? What if you could get a job paying three times as much in that town? What happens if the only opening for new grads is in a department you detest or under a boss no one can stand to work under (including you)? What if all of the above happens at the same time? You might be able to break the contract, but will you be able to afford the penalty for doing so? Or afford it even if there is no penalty?

What if the hospital agrees to pay your loans and then goes bankrupt just before you graduate? What if you get a major medical problem and can't finish school?

All debt comes with a price. At the very least you will limit your options later.

Wow! This was a very helpful and detailed answer! I appreciate all the good points.

Due to the answers I have read on here, I will not take out the loans. I will just work part time and squeeze my way througj. Thanks everyone!

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Specializes in Psych ICU, addictions.

Given that the job market for the future is very unclear (it may turn around for new grads, it may not), I'd avoid accruing any unncessary debt if you can help it. If it were me, I'd try to make it work through scraping and a job. I graduated debt-free due to a lot of budgeting, and it was a relief because I had nothing financial hanging over me.

If you do get a loan, get one that allows you to defer repayment for a while after graduation, especially if the new job doesn't happen right away. And borrow only what you need.

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