Take at least 6 units and never repay loans?

Nursing Students Student Assist

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A friend in my class says as long as you keep enrolled in 6 units of classes you need never repay your student loans, even after you graduate. Is this true?

Gordon

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Specializes in Diabetes ED, (CDE), CCU, Pulmonary/HIV.

I hope not! This makes me think of the lawyers and doctors who declared bankruptcy after graduation to escape this responsibility.

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Specializes in Anesthesia.
A friend in my class says as long as you keep enrolled in 6 units of classes you need never repay your student loans, even after you graduate. Is this true?

Gordon

Your student loans will be defered while taking classes, but unless they are subsidized you still will be accumalating additional interest during that time.

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There is a way to not repay your federal loans- its called loan forgiveness. The government will forgive loans for nurses, teachers who will be working in a area with a shortage of teachers (like dangerous urban schools, rural schools, etc.) and other "in need" professions. There's a long list of requirements that you have to meet, and even if you meet them its still not guaranteed to have your loans forgiven. It's best to plan to pay back your loans, and then if they are forgiven its a nice surprise.

Here are some links:

http://bhpr.hrsa.gov/nursing/loanrepay.htm

http://studentaid.ed.gov/students/publications/repaying_loans/2003_2004/english/loan-discharge-cancellation.htm

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It has been the policy for years now that once the student stops attending school, they must begin a repayment schedule 6 months later. Failure to pay federal loans results in the government getting its money through confiscation of federal tax refunds, just like federal tax refunds will be taken for unpaid child support. As for private loans that any student plans on not payting back, I suggest they look at the ramifications of the newly enacted bankruptcy laws.

I had federal loans out for school and when I left school they came after me for payments. I had been paying while I was in school and continued to pay as agreed, even though unemployed. I paid both of my loans off early and even today, almost 20 years after the loans have been paid in full, they still show up on my credit report. I highly advise anybody who takes out loans for education not to foolishly think they don't have to pay. There are big differences between deferment, forgiveness, and refusing to pay.

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Specializes in Float.

I wonder if you graduate with an ADN but stay in school at least part time for BSN would they stay in deferment? I am fortunate in my area employers offer loan repayment.

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Ok. My friend is very young and therefore likely not savvy on matters of student loans. Thank you.

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Specializes in Med/Surg <1; Epic Certified <1.

You can request a deferment while you are in school at least 1/2 time (which would be 6 units)....I have student loans from my BS in Business and am currently in deferment -- these were subsidized, so they are not accumulating interest at this time. I had to submit a request form to my admissions office with which they verified my enrollment and forwarded to my lender. They will begin being due again 6 months after graduation from my ASN program. How long and how many times they would continue to grant a deferment after that is anyone's guess.

However, if the loans are not subsidized, they will probably continue to collect interest as mentioned above.

I agree that student loans are not something to mess with. If I was making money right now and could continue to afford the payments, I would not hesitate to do so. These government loans are not something to mess with and are exempt from any kind of bankruptcy proceedings. I don't know how anyone gets away with ignoring them, but you can be sure I won't be on that list!!

In my opinion, if someone can afford to keep registering for 6 units of classes AND pay for the books for the purpose of deferring their loans, they can afford to make payment arrangements as well. When we mess with this system, it will ultimately affects students that come after us and need this money as badly or worse than we do.

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Specializes in Med/Surg <1; Epic Certified <1.
Ok. My friend is very young and therefore likely not savvy on matters of student loans. Thank you.

Tell your friend to check directly with her lender. If she's got an ASN, I would think she could work some hours to be able to make payments on her loan. I would also suspect the institution where she would be working would assist with her BSN education.

If that's not the case, and she's attending school full-time for a BSN, she should be allowed to request a deferment. As I mentioned above, there is paperwork that needs filled out and submitted. All of that information is located on my lender's website. She can check hers easily enough or make a couple of phone calls. Get the word straight from the horse's mouth just as you would for any serious financial decisions, which this definitely is.

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Specializes in AGNP.

Whenever you return back to school at least 1/2 time federal loans are put back into deferment, meaning you do not have to make payments. The unsubsidized loans would be collecting interest but you would not be making payments on it.

As long as you are taking 6 credits (1/2 time) they will stay in deferrment. So if you take out loans for your ADN then go back for your BSN half time then they would go back into deferrment. If you continued on with your MSN and a PhD or switched professions and went to school for something else, as long as you are 1/2 time your payments are deferred. When you are done going to school then you make your payments.

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It IS true that as long as you are enrolled for at least 6 credits your loans can continuously be deferred. But, as someone said, your loans will continue to accrue interest, so I'm not sure it's wise to continuously take 6 credits just to keep deferring (and therefore never repaying) your loans. Just my 2 cents.

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Specializes in Med/Surg <1; Epic Certified <1.

Just make sure if your friend truly qualifies and wants a deferment, that they get the paperwork or whatever in order....

When I first returned to school to take prereqs, I got notice that my lender was notified by the school and automatically put me in deferment.

This time around when I'm actually in nursing school, they did not. I submitted the paperwork prior to my starting last fall, but didn't realize that I had to complete this every semester, so had 2 payments drafted out of my checking account before I knew it!! That hurt -- a LOT!!

I was told that as long as the school completed the paperwork indicating my graduation date of May '08, then the deferment will be continuous; otherwise, I will have to make payments over the summer when we don't have classes. I am waiting to see if my school will do so; they were debating the issue a week or so ago when I was there!! :idea:

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