Sign On versus Loan Repayment?

wonderbee, BSN, RN · Mar 1, 2008

Loan repayment is taxed too, all taxes due taken out during the first year of employment.

LaeDeesNP · Mar 2, 2008

I agree with the above poster, loan repayment is taxed as well. I would always verify all of that information and get all of your questions answered before you sign or accept ANY bonus or loan repayment. Most have a number of years required for you to work, also, so I'd be sure you're willing and able to stay those years. I was offered (and took) a loan repayment and had to work two years at the hospital as my commitment. If I defaulted I would have to pay it back. Well, since life is as unpredictable as it is at times... a lot changed in my life in the first year of employment and I was married and moving to another country with my husband (who's in the Army) before my commitment was up. They made me pay back everything because I defaulted in my contract. They didn't have a military clause (which I should have looked into prior to accepting, but marriage wasn't even in my realm of thought when I signed on). I would have been happy to pay all that I still hadn't "worked off" but it was the entire amount they wanted back. "Thanks for your service to our hospital and our country, but yea...pay us back."

Anyways...I certainly went off on a tangent there! In summary (lol), I would thing long and hard before accepting any sign on bonus or loan repayment. Personally, I probably would never do it again. Good luck to you!

kydanzer · Mar 2, 2008

I interviewed with 2 different places. One offers a 20,000 sign on for 3 years, paid upfront. The other asked me what I wanted. I wasnt sure if I should ask for a sign on or loan repayment and how much to ask for. Of course, I want all my loans paid for, but that is slightly unrealistic...

gasmaster · Mar 3, 2008

I am starting school this fall, and I know it seems really early, but I am already checking out places that will do loan repayment. I'm 42 now so you can do the math on how old I'll be when I finish! I really do not want to still be paying off loans with my social security! It's very important to me to find a place that will pay them. Where are you guys located? And are these places willing to pay off total loans or just a portion? I was looking at Gaswork.com and found a few that advertise total loan payment, and I think to myself "how would Dante classify this location if he were alive today?" because it must be pretty bad if they are that desperate! Any info you can give will help!

ready4crna? · Mar 6, 2008

I assume you are looking at a W-2 position. You might be better to negotiate an increase in hourly rate rather than take any bonus up front. Loan repayment is great, but unless you had to take a commercial private loan at >10% to pay for school, loan repayment is something that can be done over time without being obligated to an employer. The increase in base rate can pay dividends should you take extra call and/or work overtime. Really take the time to evaluate your value to the employer to negotiate from strength. Remember, you are in demand and in the driver's seat. Check out the AANA website for other professional tidbits/links.

Bdawg · May 3, 2008

I signed on with the anesthesia group at my hospital. They are giving me a monthly stipend, paying all tuition and books, and stipend for equipment/license fees for anesthesia school. I was very lucky, right place at the right time. You need to look what is the best situation for yourself. I did what was best for my wife and daughter. The monthly stipend is substantial. I will pay the taxes at the end of the year, they will submit a bonus check to me and I just give it back to them. I had to sign a 3 year contract. I have to pay my own health insurance.

I found out about this through a friend who worked in the PACU, she got into an anesthesia school and received the same package as myself.

TexnRN · May 18, 2008

BDAWG...where did you find such an awesome deal..if you don't mind me asking....? I have checked with local anesthesia groups around DFW and austin areas, only to have met with no luck for a deal such as yours. I would appreciate the input! thanks!

Bdawg · May 20, 2008

I got really lucky. I live in Massachusetts at a level I Trauma Center. I signed a three year deal and I did not lock into a salary. The business manager that I have dealt with has been great. She sends me all of my reimbursements in a timely manner. In my class, I am the only one that has done this. My program director talked to us about it, and he talked about weighing the options. I weighed mine, and my deal is great for my family. I would have had to take mega loans out. Good luck