Student Loan

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What are some of the strategies to effectively lower your student loan. I have 8 more months before graduating from nursing school. I am making plans for the foreseeable future. I need concise and constructive advise, recommendations, and suggestions are welcome. I am on a 100K student debt, federal with private loans.

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Specializes in Critical Care Transport.

Work as much as you can to accrue overtime hours, live a very frugal lifestyle, and dump all of your extra money into your loan debt. Unfortunately, you have a long road ahead of you. It might not be conducive to a social or luxurious lifestyle, but that is a good plan of attack. Hopefully you dont get burned out before paying off that debt.

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You have student debt of 100K? Then I second PP. Live as frugally as you can. Drive the same beat up car till it literally dies on you. Do not waste your money on manicures, Starbucks coffee, eating out everyday...the little things you don't even think about add up-big time. Do your own nail, brew your own coffee, meal prep and bring your lunch to work, etc. Also, look into those programs that help you payback some of your loans. And believe it or not, there are actually still hospitals out there that will help with that as well. It isn't going to take care of the whole 100K, but anything will help.

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After you obtain the necessary experience, travel nursing, strike nursing, and cruise nursing, are options that will pay handsomely and lessen the time it would take to pay that down on a staff wage.

I get by just fine on $20K a year income as a student. If you really want it bad enough, you will discover feasible options to dig out of the debt pit.

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Specializes in Pediatrics, High-Risk L&D, Antepartum, L.

Wait 100K and you will be an RN? Ouch. Please tell me there were previous degrees. I don't know where you live and what salaries are like build if it is like my area you need to maximize your income and minimize spending.

No eating out unless it's free or crazy cheap.

Make food in larger quantities so you have leftovers.

Cut your cell phone bill to a minimum.

Don't have a high car payment.

Live with your parents if they will let you stay cheap or free.

Sell what you don't need.

Apply for combo loans to reduce interest rate.

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Specializes in Prior military RN/current ICU RN..

100 grand? I would find out starting salaries where you will be living. Can you live at home for a few years? If not you are going to have to go hardcore frugal. Pay every dime towards that balance you possibly can. I owed 20K when I graduated and I thought that was a ton! You may get better info from a financial advisor.

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Specializes in Geriatrics, Dialysis.

Different degree but the idea is the same...my son is a PT, graduated with $140,000 + debt. He took a job as a traveler. Not only does he get to see different parts of the country before he settles down somewhere, the money is pretty great. The housing allowance helps minimize his expenses and as he travels he doesn't like to accumulate too much stuff to move around so he keeps his discretionary spending pretty low. In 3 years he's almost halved his debt and hopes to be paid off within another 4 years. If travel nursing is an option for you I strongly recommend trying it.

Also when you start paying down, if you can't consolidate loans definitely get rid of the higher interest loans first. Pay as much on them as you can as fast as you can. With several loans out you may want to talk to a pro for advice on this one.

As an aside..holy smokes! 100k in student loans for a nursing degree? Tell me it's not so!

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Specializes in Critical Care, Med-Surg, Psych, Geri, LTC, Tele,.

I have over $50k in student loans. I've been in college off and on since the 90's.

I applied for the extended payment plan. My payments are under $200/mo. I refinanced (consolidated) my loans thru the federal govt student aid website.

https://studentaid.ed.gov/repay-loans/understand/plans/

I kept my same bills that I had while in nursing school- no new car, I stayed in same low cost apt. I added very few expenses to my household expenses even though my income has basically tripled.

I am only finished with my Lvn degree- income over $40k / yr. if I wanted to I could afford the standard repayment plan on my current income.

I will take a more aggressive approach to paying off my loans after my RN degree is finished.

Hope this helps!

You will get a 6 month grace period after you graduate before payments are due.

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Specializes in Informatics / Trauma / Hospice / Immunology.

Get your RN, get a couple years of 'real nursing', and apply for an RN Medical Device Educator or representative job with a company doing well on the stock market. If you find the right spot and they give you enough options, you could be making enough to pay off that loan in just a year or two. Or specialize (nurse anesthetist), it will add more loan but could get you to $200k or more but it also takes a few more years.

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Thank you guys! I am in a process of making a monthly budget plan, minimizing expenses, lowering cost of daily living, and selling unused items. Yes, I am looking into hospitals that may help pay loans as well as being a travel nurse. Fortunately, my car is payed off. I won't be living a luxurious life. I still have a lot of researching that needs to be done. I appreciate all your help and insights.

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How do you eat an elephant? One bite at a time.

You have a huge mountain ahead of you, and no matter what you do, you're going to be dealing with this for a long time. But you're at this point, and there's no reason to dwell on the past. Just understand you're in a tough situation.

Let me put some numbers out there for you. The average student loan is re-payed in ~16 years and carries an average ~6% interest rate. That means you'll have a $811 monthly payment. You'll get a smaller monthly payment if you qualify for an income based re-payment plan, but this only costs you more in the long run because you're paying less on the principle each month.

Now, if you're making $25 an hour as a new grad, that equates to $45,000 a year after taxes (your taxes will vary depending on your state, this is just a nice round number for illustration) before OT. If you pick up one extra shift a pay period, and get lucky with double time, you can grab an extra ~$1000 a month. Most loan holders will allow you to place extra payments directly on the principle. That's $12,000 a year EXTRA you can use to knock down the principle amount. If you make sure you're resting, eating, and hydrating adequately, you can go crazy and pick up extra shifts every week for a short period, and really make a dent in your balance.

There are two ways to pay a debt faster: reduce your spending or increase your income. As an RN, increasing your income is easier because of the possibilities of picking up extra shifts. If you can't get extra shifts at your primary place of employment, try adding a PRN job elsewhere. You won't be getting double time, but your base rate will be higher.

Let's say you pay your loans off 5 years early and then invest those payments you're not sending to the loan company into a conservative mutual fund or 401k. In twenty years, that 5 years worth of payments could be worth $250,000, conservatively!

Keep a written budget, give every dollar a name, work extra hours, and make sure extra payments go toward the principle. Doing this may reduce your total repayment from 16 years to 8 years, but every extra dollar counts in the long term.

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