Student Loans

futureeastcoastNP · Jan 30, 2014

I am applying for FNP school and I am trying to think realistic about what kind of a monthly payment I will be looking at once I graduate. The programs I am looking at are $60,000, $44,000, and $80,000. What kind of monthly payment will I be looking at and for the FNPs out there how is it after school working and paying back loans? I do not have any loans for my undergrad. The programs I have chosen are based off of a good reputation, and pass rate and I am not basing my decision on cost. I just want to know what kind of payment I could be looking at and what everybody's experience has been.

Kind of difficult to answer - loans aren't as straightforward as that. There are limits on how much you can borrow each semester from the federal government, so if the 80K program, for example, is one year long, then you would have at least half of your loans from a private company and thus not be eligible for deferment or income based repayment.

Assuming you can get all federal loans, however, the payments would be:

44K: $475 per month for 10 years, or $268 for 25 years.

60K: $648 per month for 10 years, or $365 for 25 years.

80K: $864 per month for 10 years, or $487 for 25 years.

This does not include income based repayment or other payment plans available from the government. These are calculated based on the current direct unsubsidized graduate student loan rates from the US Government over standard 10 year or 25 year repayment plans.

mzaur · Jan 31, 2014

Kind of difficult to answer - loans aren't as straightforward as that. There are limits on how much you can borrow each semester from the federal government, so if the 80K program, for example, is one year long, then you would have at least half of your loans from a private company and thus not be eligible for deferment or income based repayment.
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This is incorrect. Since its a graduate program, Grad Plus loans can cover all costs, including living expenses if necessary. You can take out as much as you need with no limit. I know you just want to help but spreading misinformation does not help anyone.

http://studentaid.ed.gov/types/loans/plus

futureeastcoastNP · Jan 31, 2014

This is incorrect. Since its a graduate program, Grad Plus loans can cover all costs, including living expenses if necessary. You can take out as much as you need with no limit. I know you just want to help but spreading misinformation does not help anyone.
PLUS Loans | Federal Student Aid

You're correct - there is the Grad PLUS loan, which I forgot about. I do not, however, consider this a good option. It has a nearly 7% fixed interested rate, a 5% (!!) origination fee, requires a credit check and possibly a co-signer, there is no grace period upon graduation, etc. For all intents and purposes, it acts like a private loan with bad terms. The only benefit is the ability to participate in IBR and other programs with it, though an NP salary likely won't have lower payments under IBR than with standard or extended repayment. If you have excellent credit, there are private loans with much better terms than the PLUS loan, especially if you go through a credit union.

mzaur · Jan 31, 2014

Payment can be deferred for 6 months after graduation. No co signer is necessary if you have decent credit. It's not perfect but you will likely not find anything better from private lenders. Unless you apply with a cosigner who has a lot of income. Then you might get a good rate from a private lender. Also, I'd much rather have a fixed rate loan than the typical variable rate you get from a private lender which can go up whenever.

For most people, the Plus loan is the better option. For few, a private loan may be better. Depends on your credit score, whether you have a cosigner, and what rate your lender gives you.

BritFNP · Feb 3, 2014

My grad program cost me $40,000 and the minimum payment now is about $350/mo. That said, every loan will be different and interest rates will be different. Also, paying the minimum payment gets you no where fast in terms of pay off.

flipper628 · Feb 5, 2014

Also, whether you do private or grad plus you can't borrow as much as you want. Each student is assigned a budget dependent upon their status, i.e undergrad or grad, and if they are full time or part time. You can borrow up to that budget. So if your program is 24k/yr your budget might only be 36k/yr which will only leave you with a 12k refund (6k per semester). That is for fall and spring. If you take summer classes it will increase your budget so you can borrow for that semester as well.