$100,000 in student loan debt?

[FireStarterRN]

I keep reading about new nurses saddled with $100,000 worth of student loan debt. I'm curious about this. Are these students using their loans to live off of while they attend school or are they attending very expensive schools? You could almost buy a house for that amount. How common is that level of debt?

[~Mi Vida Loca~RN, ASN, RN]

The economy isn't tanking because people borrowed money to go to college. You want to jump on the debt destruction bandwagon, be my guest! But there are far worthier targets than people who take out loans for their education.

How bout the idiots who paid insane prices for their homes and are now facing forclosure? Or the people who have racked up thousands in credit card debt they can't afford to pay? Those are the reckless and irresponsible folks who are now filing bankruptcy to get a clean slate without paying that money back. Student loans get paid back one way or another--the government will keep tax refunds and garnish wages (I know someone who was in this situation) if you don't pay voluntarily but one way or another, those of us with student loans are paying them back.

Ummm the economy is tanking because people borrowed way more then they could afford. People pulling out these private loans that go off your credit, those loans people can file BK on can they not?? I know not the federally funded ones, but I believe the private ones they can. Your second paragraph fits right in with the people that borrow way more on education loans than they can afford. One poster admitted they didn't even look what their payment might be. I would be willing to bet she isn't alone and that many kids did this. I have to seriously laugh at you calling people that borrowed to much for a home an idiot, (or CC) but than you justify someone having over 100,000 dollar debt for a BSN degree, when that same degree can be had for a FRACTION of the price.

How is CC debt any different than this??? Both are borrowing of money that isn't yours.

[pers]

No, I dont' need to do that. Please use common sense for Pete's sake.

We didn't have any specific instantances in housing until the economy fell either.

Weak argument.

I am using common sense, I see zero relationship between student loan debt and the current state of the economy. And if you believe there weren't warning signs regarding the housing market you weren't paying attention. That bubble had been yearning to burst and it was talked about long before it happened and it's not the first time we've seen it.

I get that you think it's a bad choice but I don't think you are qualified to make those decisions for everyone in their individual situations. You wanted a nursing degree and got it. I wanted more than that and I got it. All I'm seeing is win-win.

For those loving Dave Ramsey, good for you on working your way out of debt! I'm fortunate that I have no debt aside from my education. I imagine being faced with tons of credit card debt or a huge mortgage in this economy would be distressing to say the least.

[melmarie23, MSN, RN]

Edu loans (and I am referring to the federal type, and NOT the private bank edu loans) are not the type of borrowing that has hurt the economy. I think people are getting these two very different types of loans confused.

And I still dont see how borrowing for your education is reckless. Borrowing to further your education is not "frivolous." For some, its the only option. And its a personal one at that. One that I would venture to say most weigh very heavily.

[Boog'sCRRN246, RN]

Borrowing for your education isn't necessarily reckless...it's borrowing more than you will make in a year when you are done that is reckless.

[~Mi Vida Loca~RN, ASN, RN]

I am using common sense, I see zero relationship between student loan debt and the current state of the economy. And if you believe there weren't warning signs regarding the housing market you weren't paying attention. That bubble had been yearning to burst and it was talked about long before it happened and it's not the first time we've seen it.

I get that you think it's a bad choice but I don't think you are qualified to make those decisions for everyone in their individual situations. You wanted a nursing degree and got it. I wanted more than that and I got it. All I'm seeing is win-win.

For those loving Dave Ramsey, good for you on working your way out of debt! I'm fortunate that I have no debt aside from my education. I imagine being faced with tons of credit card debt or a huge mortgage in this economy would be distressing to say the least.

Well I do love Dave Ramsey, but from what you have shared, your debt far surpassed the CC debt I ever had including my car loans. I also never had a huge Mtg. We bought our house for 185, it was 2300 sq feet on half an acre of land in a good area at the end of a cul de sac. 3 years later we sold it for 255

Now my husband and I have minimal CC debt that will be able to be paid off in less then a year, my SL debt and a car debt for one of my cars. When the market tanked so did the value of cars, so now we owe more on the car than it's worth so we are sort of stuck with it for now. We should be able to be debt free, including my Student loan debt I have and will end up with over the next 2 years in 2-3 years. I might not have to pull out any SL debt for my second year of nursing school, but if I do it will be minimal.

I am not against having ANY SL debt. I totally get that sometimes you have to. What I think is absurd is the insanely high debts people are incurring for JUST a BSN degree.

That is all I have said.

[cardiacRN2006, ADN, RN]

I am not against having ANY SL debt. I totally get that sometimes you have to. What I think is absurd is the insanely high debts people are incurring for JUST a BSN degree.

Exactly!

Nobody here said "use absolutely no student loans" Nobody.

But 100k for a BSN? THat most people can get for free from their workplace? Silly.

[Boog'sCRRN246, RN]

I'm only 26, but my mother told me of a time when things were bought AND paid for at the same time. Everything wasn't financed like it is right now. People used to do crazy things, like actually save money to buy houses instead of financing them 110%.

[~Mi Vida Loca~RN, ASN, RN]

Edu loans (and I am referring to the federal type, and NOT the private bank edu loans) are not the type of borrowing that has hurt the economy. I think people are getting these two very different types of loans confused.

And I still dont see how borrowing for your education is reckless. Borrowing to further your education is not "frivolous." For some, its the only option. And its a personal one at that. One that I would venture to say most weigh very heavily.

Well someone already posted that because of the limits you can't borrow as much as people say they have for an Undergrad degree which would leave us to believe these people are pulling out private loans which can effect the economy very much so when they get out of school and have a 1400 a month payment to make on top of all their other bills so they might end up going BK on the amount.

Some of these posters could have gone through medical for the SAME amount and make 3 times as much on the job.

If I spend 90 thousand dollars to get a teaching degree, and once I am done I am a teacher making 35 grand a year, how is that smart??? Especially when I could have gotten that same degree for 15 thousand?? (talking about a regular teaching degree here, like to teach elementary school, not a Masters or PHD to teach at Universities)

It all boils down to common sense. Some people have it, some people don't.

[~Mi Vida Loca~RN, ASN, RN]

I'm only 26 but my mother told me of a time when things were bought AND paid for at the same time. Everything wasn't financed like it is right now. People used to do crazy things, like actually save money to buy houses instead of financing them 110%.[/quote']

It's a crazy notion indeed LOL

I will say though, I can justify a house debt. It would take a long time to save 250 thousand dollars, which is around the price for a decent house in a good area in my city. I think though the smart thing to do is save for 20% down though so you aren't financing at 110%. I had no one to show me good financial choices when I was young. I had a mother that was always writing hot checks, was feeding us kids bread and ramen while her and her boyfriends had steak and lobster. We went to school in second hand clothes while she was shopping at Nordstroms. Will never forget how embarrassing it was when we got school supplies and the manager of the store stopped us outside and took our stuff because my moms name came up on their hit list for hot checks. Or the rent a center people always banging on the door to take back her furniture while us 3 kids shared one room and slept on the floor. I vowed to never live like that and in that respect I haven't. I have never bounced a check on my own. I did have 3 checks bounce when my pay check from my boss BOUNCED!!!! I made her call the bank and get it sorted out.

But back when I was 19 and my husband was 20 we went from making 350 a week to him getting a different job and he was making 1100 a week. We racked up so much CC debt (well compared to some of these SL debt numbers it was chump change LOL ) but we started spending very stupidly. We were young and naive and had no guidance. We used to joke that we had more spending money when we were POOR than when we were living with a better an income.

Thankfully we are still young though (me 29 and him 30) and we finally get it, when it comes to money. We knew we needed a new car, my car that I am stuck with payments on doesn't seat us all so we have to take 2 cars everywhere (which is a lot in gas) it just isn't feasible for my big family. So my husband kept saving and went and paid cash for a 02 Yukon XL Denali with Low miles and in great condition for me. Paid UNDER blue book for it since now people are needing the money, he bought it in Cali, where people had them more for social status and not for practicality, so they were cheaper there. (here the AWD is practical with our CO winters). So anyway, it is so nice to walk out and get in my car that not only looks nice, but it runs nice and best of all it is MINE free and clear, no payments, I have the title. As for my other car we think we will just pay it off for my son. He will have a permit in 2 years. Rather then having to find a car for him.

Anyway, when it comes to debt and my mindset NOW I can justify financing a house and I can jusifity SOME student loan debt. (within reason) and that is about it. I can't even justify a CC for "emergency's" only. That is what a savings account is for.

[melmarie23, MSN, RN]

I've qualified for all I ever needed in federal aid to cover my tuition costs. Its based on need. If you can demonstrate a need for it, chances are you will qualify.

Is BK=bankrupt? I am sorry, I am not sure what that meant but hopefully that is right. Going bankrupt is not going to wipe out your student loan debt...at least not what is owed federally. That debt is there to stay until the moment you can pay it off. What WILL happen though is that they will work with you should you face such a situation, and help lower your payments for x amount of time, or defer them til you get back on better financial footing. Its all about I help you, you help me mentality, which IMO, is a good thing. Furthering ones education not only helps the individual, but has the impact to benefit society as a whole. The lenders lend because they expect and will get a return on that investment.

And $1400/mo in payments is a bit much and I really think its an assumption being made. There is this little thing called consolidation that can make your payments half that. You consolidate where you can, lock in low interest rates (for example, my undergrad loans I locked in a 2% interest rate which is next to nothing). Like I said before, I think most people weigh in the pros and cons of borrowing before they do so. The example of a few peoples idiotic mistakes is not by a long shot the norm, I assure you of this.

Also, you cant say that this nurse or this teacher could get their degree for $x. This varies regionally and CC or Public Universities, their tuition and COL are not the same, so in essence you are comparing apples to oranges here. So no, some people cannot get that nursing degree or teaching degree for $15k. For some, its much more costly than that.

Being "smart" about your debt it all relative to your particular situation. If you have a plan on how to tackle and pay back that debt, regardless how much it is, then thats all that matters. Who are we to judge anyone?

[cardiacRN2006, ADN, RN]

Yes, my husband and I have gone to a total cash perspective. We try to pay everything in cash. No more credit. I save for school, we make triple payments on our one car, the other car is free and clear. When we need a new car for the man, he will probably get another used on that he can buy outright again.

The main debt we have is the home. I love my home. I plan on living in it for a while. Bought it when the market was falling.

Today, in these times, it's just silly to waste so much money.

[cardiacRN2006, ADN, RN]

Mi vida~ I'm glad you didn't make the same choices as your mother. Some people could have easily fallen into that same path...