$100,000 in student loan debt?

Jolie, BSN · May 14, 2009

It costs around 20-30K a year or a private school. Valparaiso University charges $29,020 a year for tuition and university fee's. Forget about living expenses, that's $116,080 for four years of classes alone. Add on books, and you are looking at $120k+. My brothers girlfriend went there for a degree in English, and ended up with 65k worth of debt (she was lucky to have a scholarship, and a great deal of grant money). Education is not cheap.

I don't ask this to be critical; I am genuinely curious as to the mindset: Why would one incur hundreds of thousands of dollars in debt in order to go to an expensive private school, when public universities offer the same degree, the same credentials and the same NCLEX pass rate at a fraction of the price? If one's reasons for going are to avoid a 2-4 year wait list, is the debt worth the earlier entry into the job market or does the overwhelming loan payment obligation negate that advantage?

And as a related question: Should the taxpayers underwrite hundreds of thousands of dollars in federally-guaranteed student loans for such an education when less expensive alternatives exist. I compare this to Fannie Mae andFreddie Mac mortgage programs which were intended to enable homeowners to enter the housing market at the entry level, not finance houses that cost millions of dollars. Should the taxpayers guarantee $100K in loans to a single student when that same amount of money could fund an identical education for 4 students at a public university or community college?

~Mi Vida Loca~RN, ASN, RN · May 14, 2009

I don't ask this to be critical; I am genuinely curious as to the mindset: Why would one incur hundreds of thousands of dollars in debt in order to go to an expensive private school, when public universities offer the same degree, the same credentials and the same NCLEX pass rate at a fraction of the price? If one's reasons for going are to avoid a 2-4 year wait list, is the debt worth the earlier entry into the job market or does the overwhelming loan payment obligation negate that advantage?
And as a related question: Should the taxpayers underwrite hundreds of thousands of dollars in federally-guaranteed student loans for such an education when less expensive alternatives exist. I compare this to Fannie Mae andFreddie Mac mortgage programs which were intended to enable homeowners to enter the housing market at the entry level, not finance houses that cost millions of dollars. Should the taxpayers guarantee $100K in loans to a single student when that same amount of money could fund an identical education for 4 students at a public university or community college?

That is an excellent point about weighing the (wait time) to the Debt time to avoid the wait. If one is racking up over 100,000 dollars for a simple RN degree (not saying it's simple to get just meaning not talking about a Masters or PhD) to avoid a wait at their CC I am guessing the debt isn't worth it.

I am already not happy about the fact that I will have about 30 thousand dollars of debt without a new car and boat to show for it :stone LOL but thankfully it should only take us about 5 years to pay it off if that, we have most of all of our debt paid off except my Student loans and 2 car payments. So we will be able to start nailing out the SL debt in the next year or so.

ParkerBC,MSN,RN, PhD, RN · May 14, 2009

I am looking at around 45-50 K and it was for a private BSN degree. Out of school for about 1 1/2 years. Like a previous poster, having three kids paying for school at 595.00 a credit hour and what did my loans go for? Tuition, books and my property taxes and small amount to daycare and not to mention gas. When someone is not used to paying $300.00 a month in gas to travel the 45 miles round trip approx 4-5 times a week it added up. (gas was close to $4.00 remember) so, I do take a little offense to those that say that we used it for non necessities. I couldn't work and go full time. I had 3 kids. Now I am paying and will be paying for 10-20 years. I am in my late 30's with no prior educational debt. If my DH passed tomorrow, could I survive on my salary, YES. Could I have even with his life insurance, not for long. If your salary is close to your debt per year, it's worth it. Think of it like this ..... would I like a new suburban? Sure, cost.... 45,000 ..... education debt for a lifetime of security..... worth it. It's realtive. However, I have a question for any of you, I need to consolidate and haven't started the process. I have no idea how to do this, can anyone help me???? Thanks!

Go to http://www.ed.gov/offices/OSFAP/DirectLoan/calc.html The website explains how the interest rate is calculated and there is a link on the site if you're interested in consolidating.

ParkerBC,MSN,RN, PhD, RN · May 14, 2009

i don't ask this to be critical; i am genuinely curious as to the mindset: why would one incur hundreds of thousands of dollars in debt in order to go to an expensive private school, when public universities offer the same degree, the same credentials and the same nclex pass rate at a fraction of the price? if one's reasons for going are to avoid a 2-4 year wait list, is the debt worth the earlier entry into the job market or does the overwhelming loan payment obligation negate that advantage?
and as a related question: should the taxpayers underwrite hundreds of thousands of dollars in federally-guaranteed student loans for such an education when less expensive alternatives exist. i compare this to fannie mae andfreddie mac mortgage programs which were intended to enable homeowners to enter the housing market at the entry level, not finance houses that cost millions of dollars. should the taxpayers guarantee $100k in loans to a single student when that same amount of money could fund an identical education for 4 students at a public university or community college?

i think you pose a good question. first, federally backed student loans and mortgages are completely different animals. federally backed mortgages can be included in a chapter 7 or 11 bankruptcy whereas student loans, unless proof of hardship (disability or death) are not dischargeable. i tried to find an article i recently read but was not successful in finding it. the article was about several lenders who have begun going after customers who have defaulted on their student loans. the article indicated assets (homes, car, savings) were frozen and liquidated to settle the outstanding balance. it also stated that the lenders garnished wages. what is even more interesting is that the article mentioned that many of the customers affected by this were both doctors and lawyers. i have heard that students went through medical school and never paid their loans back. i have always wondered about that. ohh i almost forgot, the article also mentioned that the federal government is also working on an amendment to suspend a professional license until an arrangement has been made and a minimum of three payments were made on time. anyways, i understand your question, but if a customer has a student loan, he/she will pay it back unless they die. i will continue looking for the article and get it posted. it was quite interesting.

ParkerBC,MSN,RN, PhD, RN · May 14, 2009

That is an excellent point about weighing the (wait time) to the Debt time to avoid the wait. If one is racking up over 100,000 dollars for a simple RN degree (not saying it's simple to get just meaning not talking about a Masters or PhD) to avoid a wait at their CC I am guessing the debt isn't worth it.
I am already not happy about the fact that I will have about 30 thousand dollars of debt without a new car and boat to show for it :stone LOL but thankfully it should only take us about 5 years to pay it off if that, we have most of all of our debt paid off except my Student loans and 2 car payments. So we will be able to start nailing out the SL debt in the next year or so.

People who have that amount in debt while obtaining an RN degree normally already have undergraduate degrees and are going back to school as career changers. Good lord...I couldn't imagine paying 50K/yr for a degree:cry:

~Mi Vida Loca~RN, ASN, RN · May 14, 2009

Me either, my 30 grand will be for the total of 4 years I went to school. Like I said, majority of it went to and will go to child care. Which is almost as much as my rent, while the workers make min. wage. but that is a whole other discussion LOL

TexasPediRN · May 14, 2009

This is not true. I would encourage you to visit different school's financial aid websites and see what percentage of students receive financial assistance. The percentages are not at 100. Also, take into account how much a person pay per credit hour for tuition. For example, I paid $425.00/hour for my undergraduate degree (124 credits), then I paid 776.00/hour for my masters (39 hours) AND I had no financial aid available. Now can see how someone can incur that level of debt?

Actually, where I went to school, the vast majority did NOT pay the full tuition price.

Nor did anyone in the area. Financial aid was readily available to all of us. I dont know of one person who attended my school, or schools in the surrounding area that paid full price. They sent out pamphlets as well stating the vast majority of their students received financial aid, statistics provided.

And, I never said the percentages were 100%. I said the majority...

ksrose1 · May 14, 2009

When you pass your boards and get your license it doesn't state where you went to college.....you just become LVN, RN, BSN and MSN......I stated before I wouldn't pay extra for a certain college. Right now my husband and I are both in college and I like another writter envy those students that can spend time sleeping and studying all night long. I work weekends to pay the bills that have to be paid to live in an apartment and drive. My husband works full time at night stocking to pay for our classes. We are paying for the classes we take as we take them and hope to finish with no debt. I am an LVN trying to get my RN and he is finishing up his bachelor's in business. I can tell you I have had to repeat two of my classes because of things going on at work and home that would not allow me time to study. Yes education is expensive.....but No I would not recommend anyone borrow that much for it.

GomerPyle · May 14, 2009

i'm hoping there will be a government bailout of all healthcare worker student loan debt. :yeah: how much could it cost? a few billion? that's chump change when we're currently spending trillions :smackingf i think i'll send a letter to obama:idea:

sunray12 · May 14, 2009

when you pass your boards and get your license it doesn't state where you went to college.....you just become lvn, rn, bsn and msn......i stated before i wouldn't pay extra for a certain college. right now my husband and i are both in college and i like another writter envy those students that can spend time sleeping and studying all night long. i work weekends to pay the bills that have to be paid to live in an apartment and drive. my husband works full time at night stocking to pay for our classes. we are paying for the classes we take as we take them and hope to finish with no debt. i am an lvn trying to get my rn and he is finishing up his bachelor's in business. i can tell you i have had to repeat two of my classes because of things going on at work and home that would not allow me time to study. yes education is expensive.....but no i would not recommend anyone borrow that much for it.

look at it this way. if you were willing to invest a few thousand dollars (i.e. borrow, yes investing usually means borrowing), you would have had the time to study adequately. you might have done with your schooling and practicing as a nurse by now. you and your husband would have at least one full time professional salary in your household. surely that's worth the investment.

and some additional comments

1) private schools can usually deliver programs more efficiently than state u. seating at state u and cc is often limited so not everyone has that option or is interested in waiting around while making minimum wage for a seat to open up. i've looked into state u many times, but never yet attended one because i always find a private school to can give me what i'm looking for well before state u could.

2) no one gets any extra brownie points in heaven (or on earth for that matter) for not having student loans. you get dinged if you don't pay or default on them - but there's no penalty for having them.

gt4everpn, BSN, RN · May 15, 2009

I go to Long Island University school of nursing :down: :down: and the total cost of the school for 4 yrs is $ 100,000 and counting :crying2: why so expensive??? nobody knows.

imalilteapott · May 15, 2009

I have 130,000 in loans. I switched majors late in the game. I went to two 20,000 grand a year schools, and I was in school for 6.5 years. I'm middle class so I didn't get any financial aid. Trust me, no one sets out to aquire so much debt. I feel like some people are implying...I purposefully wasted my time and money. I just wanted the best education for my first major and then the best nursing education. Sometimes it just happens. However, Im not really worried about it. I make 55,000 a year and I graduated in dec. Single no other debts....... should be paid off in a few years.

I also want to go back to NP school and the maybe get a Phd.... so maybe I'll have a few years of deferment!