take out school loan even if I do not need to??

Lausana · Feb 14, 2003

Personally, I can't imagine asking an employer to pay for a loan I didn't need to take in the first place? :confused: If the money isn't for books, tuition or living expenses due to not being able to work during school then why should I ask someone to pay for that?

In all honesty, I haven't even thought about tuition reimbursement a great deal yet, it's a nice option if you can get it but when I took my loan I knew I needed it and was grateful for the amazing rate I got.

I think you mentioned before you may be laid off in the future from your current job--maybe you should hold off on worrying about loans now & keep it open as an option if you need it in the future--it is nice to know they're there!

Anaclaire · Feb 14, 2003

I'm in agreement with the "DON'T DO IT" group.

I feel it's unethical, underhanded, and selfish to borrow money one doesn't need... especially when considering attempting to use it to earn interest or somehow make a profit at someone else's expense...

While watching Suze Orman one night a caller asked the very same question and Suze calmly and concisely explained the reasons for not taking out student loans when they aren't necessary. Her comments echo many of the other "Don't Do It" groups comments on this thread.

My Grandmother used to say, "If you do someone/something wrong they/it will come back down the road meeting you." A very old Southern way of saying "What goes around comes around" which seems to be a truth in life even though we'd sometimes rather it not be.

I'd suggest taking the high road, being an honorable person in every way, and living a life that in the end will make you proud of yourself and honored among your friends and loved ones.

Good luck with your decision.

New CCU RN · Feb 14, 2003

I don't agree. Loans are out there for everyone. It is not the same as taking out a grant or scholarship that only certain people qualify for. Even if you can pay for school on your own, I am sure it is stretch. For most of us it is.

The majority of facilities participate in some sort of tuition reimbursement. What you need to decide for yourself is if you are willing to spend whatever amoutn of years working for a certain hosp so they can pay back ur loans..... that only u can answer based on the facilities around u.

One other thing.....if u have no credit at all....like many college students do..the gov't loans can help in the long run... they have low interest rates and many of them don't require u to start paying or accumulating interest til after u graduate and are working. This will help build ur credit in a positive manner if you pay ur loans responsibly.

Go for it.

New CCU RN · Feb 14, 2003

Oh one other thing... the interest u pay on a student loan is tax deductable...why not have more things u can deduct to get money back from the gov't that you earned

fergus51 · Feb 14, 2003

Loans are not there for everyone, trust me. There is only so much money out there for loan programs. They are there to help those with limited financial resources, not to be used as an investment fund or credit line. I seriously doubt most people would defend a rich person getting a loan they didn't need, so I don't see why it is ok for someone of a middle class income bracket.

llg, PhD, RN · Feb 14, 2003

Dear back2school: and I mean this kindly ...

You seemed to have missed the point. Many of us who are advising the original poster NOT to take out the loan are doing so not because he/she would not benefit from it ... but rather, we believe that it is UNETHICAL for someone to take the money out of the hands of someone else who really does need it.

A financial advisor (or financial aid counselor) will probably not consider the ethics of the situation. They will simply tell you whether or not you are eligible for the loan and details about it. It is true that, if you don't need the money, you can simply invest it and make a profit on the interest. But you may be making that profit by hurting other people. By taking money that you don't need, that money becomes unavailable for use by others who may really need it.

From an ethics standpoint, the question switches from, "Can I make a profit this way?" to "Is that the kind of person I want to be?" For some of us, the answer to that second question in "No" and we believe the world would be a better place if more people said "No" to the practice of making money by hurting other people.

llg

maureeno · Feb 14, 2003

This is off-topic but related to the 'ethics' of our times... several economists estimate the 10,000 largest coporations are defrauding us all out of tax revenue of least $50billion each year........huge fees are paid to accounting and law firms to facilitate such cheating.....

back2school · Feb 14, 2003

I wasn't advocating taking money from those less fortunate. I assumed from looking at the Financial Aid forms that the government would know who to give the money to. They require your previous years tax forms and information on everything you own.

The loans, on the other hand, are different. Some are subsidized and once again you must submit all your financial information to receive them. They don't give to people with high incomes. OR ... You can get loans on your own from a bank or lender which are not subsidized. I was thinking of the latter.

Whether or not to get a loan truly depends on each individual's financial situation. Definitely try for all the scholarships!

Toni

colleen10 · Feb 14, 2003

I'm not going to get in on the discussion regarding the "ethics" of taking the money because after reading the posters original message I don't think they would take the money to invest it and make a profit, I think their stand point is "why should I pay for my education now, when I can take out a loan, have it or the bulk of it paid for by the government or future employer there by in the long run saving me money." While it may not be ethical I can't blame anyone for trying to figure out a way to save a buck.

I wanted to add, though, that like my first post, I still would stay away from getting a loan unless I really had to.

The reason I feel this way is because my first time around college (B.S. Agricultural Science) I had to take out a $17,000.00 loan from the Feds. By the time I finish re-paying it, it will be more like $26,000.00. Right now the payments are somewhat manageable but they get a little larger every couple of years and by the last two years they will be about $350.00 a month. I have no idea how I am going to be able to afford that when I am having difficulty affording the half of that that I pay now every month.

Was the loan worth it? Not in my opinion. At least where I live, if a college educated person can even find a job they aren't going to make more money than a person with no education, yet they are going to have huge loans to pay back.

And, when I was laid off and the economy was allready into it's downward spiral I deffered my loan for the max. 6 months that you are allowed to if you are laid off, pregnant, ill, etc. After those 6 months when I still hadn't had a single interview the loan office didn't care, they just wanted their money, they were not going to cut me any more breaks no matter what situation I was in.

Now that I am back in school for an ASN I am trying to pay as much of my expenses out of pocket as I possibly can but know that I am still going to have to take out a loan. Once I graduate I will certainly try to have loans reimbursed if at all possible.

However, if I end up working in a facility that is deemed "needy of nurses" by the state or for an employer that will re-pay my loan I won't risk my new license or my sanity if it is understaffed, unsafe, etc. just to get some money reimbursed.

Remember, nothing is free, most of the time when a place offers big bonuses, etc. it is because they are desperate for people. And, there is usually a reason that they can't people there. I'm not saying that every place is like, but, it is something to consider.

So, I guess the point of all of this is that no one knows what the future holds. Years from now when you are an RN and have those loans hanging over your head you may have difficulty paying them back, maybe you will have started a family, run into some sort of financial difficulties, be sick and un-able to work, who knows?

Maybe you will find a place that will re-pay your loans but at what expense to yourself and your career? Will you want to work on a floor that you are not all that interested in on a shift that you don't really like with management that doesn't really care about ratios?

Maybe you will get lucky and find a great place to work, but who can say for sure?

That's just my opinion and the #1 reason I have stayed away from getting more loan than I need and going through a hospital run program that will pay for your educaiton if you stick around for 2 years.

maureeno · Feb 14, 2003

unsubsidized loans start accuring interest immediately; though payment is deferred the cost of the loan begins ticking at time of issuance.

Agnus · Feb 14, 2003

sounds too much like a gamble. A lot can happen and you might get stuck with paying not only the loan but intrest on a loan you didn't even need.

I can think of a thousand reasons this could go sour for you. Instead concentrate on getting the job you want after graduation with the freedom to move if you don't like that job after all. Count your blessings. Trying to get something for nothing seldom works.

Agnus · Feb 14, 2003

Advising people to take out unneed loans is foolhardy. If you don't need it and you have it there is the terrible temptation to use it. Ideally such a loan should not be spent. It should only be held in reserve until such time that you need to repay it or until it is completly repaid. I can almost guarentee that your good intentions to put it away until this happens will not hold out. You will find a "good reason" to use it. Don't do it.

Just because a counselor or advisor at school says to do it does not make it good advice. THEY ARE NOT THE ONE GETTING STUCK WITH IT. Remember the interest also.