The Debt Rant

[NickiLaughs, ADN, BSN, RN]

Hi All, this is probably more for me than anyone else, but maybe if someone can learn from my situation, they can prevent it for themselves.

I've been on this forum since before I got my LVN back in 2003. I was 20 at the time, and my parents basically said "You have a year to have some sort of career figured out, and then you are on your own." I was a good student and worked full time, but because I wasn't sure what direction I wanted to take in college, they basically forced a decision for me. Not necessarily a bad thing, but I suddenly had a year to figure out how to support myself and streamline some sort of career. Since we were in the midst of a major nursing shortage, I live in California where it's expensive, I decided I'd get my LVN at a trade school, since a community college was going to take significantly longer for a year for me to finish, and I didn't have that much time.

17,000 dollars and a year later...I was an LVN with lots of job opportunities.

I moved in with my boyfriend, life was good, I kept taking prereqs for my RN at the community college. However, instead of being thrifty and focusing on paying the debt off. I went out and had fun with my friends, I was 21, it was supposed to be a fun time. I only managed to pay off about half of it. so still had about 9,000 of the debt.

I finished my prereqs, applied to a couple community colleges, but I didn't realize how hard it is to actually get a spot in a Comunity College at an LVN to RN program. I actually got a job at a Cal State in 2006, and decided since the school was free for me, to take the additional prerequisites and just go there.

2007, we were doing really well financially, but living in a horrible apartment, very cheap, but a bad area. I decided it was time to buy a house. Everyone kept telling us to because prices were only going to go up and up. Mind you, we'd only ever paid 600 a month for this crap apartment and that included utilities. We had no clue what we were getting ourselves into, not how much more utilities would be with a 2000 dollar house payment. But hey, 2007, height of the market even tho we were told buy now.

Jan 2008 - accepted to the BSN program! Absolutely excited, know it's going to be hard to balance the job with part time hours and the school, I was able to make it balance for about one quarter. Then, my husband started getting his hours cut more and more, we couldn't even afford the house payment. I had a bad feeling. I was right. I got accepted to a private ADN program in northern California, I would be done 01/2009 or I could stay in the BSN program where I could no longer balance my job and was going to have to pay out of pocket and be done in 12/2010. 2 years difference, and with money so tight it made sense....35,000 more in debt, on top of the 10,000 I acquired at the BSN program trying to use student loans to pay a mortgage. Plus still the 9,000 from the LVN.

Finish the ADN program and so grateful I did it, my husband got very ill in the middle of it, and we had to stop making the hosue payments and walk away. It was inconceivable with a husband on disability and me so close to getting my RN to having any other choice.

After the ADN I was able to get a job in a New grad program in ICU, very very lucky. I went back to work, but decided, I had already done so much of the work for the BSN...why not finish? I had no money saved up and had to take out more loans to finish, about another 20k, but hey, they say there's so few jobs, and a BSN makes me more marketable.

So at this point:

9000 for the LVN

35,000 for the RN- ADN

10,000 plus then another

20,000 for the same BSN program

74,000

It makes me sick at night, there's so many things I could have done differently. When I was an LVN I could have paid off at least that 9,000 dollar loan, and maybe had some money saved towards the ADN. I definitely should have NEVER tried to buy a house, that would have saved me some of that debt. I could have waited a year to go back for my BSN and at least use tuition reimbursement for an employer. I probably should have sucked it up longer at my first job and been able to at least have tuition reimbursement for part of it the second year of the program.

In any case, that's the disgusting amount I owe, and I hope my "rant" can make someone else realize, the debt isn't always worth it. Honestly, I still do not regret the expensive ADN program, as my husband and I would have been in a much worse situation if I hadn't done it. Supporting two on an LVN salary in California would never have cut it. I just feel like had I made some significantly different decisions, the amount could be much less.

Open to any and all suggestions, at this point, I'm looking desperately at the local VA to see if maybe they have some sort of job that would at least allow some loan reimbursement. The one concern I have is it's a paycut from what I make now, and I am barely scraping by.

Our other problem is I'm trying to support my husband through a career retraining because he can no longer work in his prior field of truck driving with his health condition. Can't really drive a truck for 15 hours with arthritis. And we have no family nearby and the surprise bundle of joy we had last year gets expensive with babysitting.

[VolunteerCPR]

That is really good advice, students just starting out need to be aware of the implications of debt.

Not to worry though, while you do owe a lot, its probably a very low interest rate (2-3%?), and you probably qualify for Federal IBR (Income Based Repayment). (Although there are pros and cons to that, easily found with a Google search...). Your student loan company will probably be more than happy to work with you to come up with a payment amount you can afford, so just make that payment amount and don't worry about the actual number or that it isn't paid off.

[NickiLaughs, ADN, BSN, RN]

That is really good advice, students just starting out need to be aware of the implications of debt.

Not to worry though, while you do owe a lot, its probably a very low interest rate (2-3%?), and you probably qualify for Federal IBR (Income Based Repayment). (Although there are pros and cons to that, easily found with a Google search...). Your student loan company will probably be more than happy to work with you to come up with a payment amount you can afford, so just make that payment amount and don't worry about the actual number or that it isn't paid off.

Thanks, the big 35,000 one is a private loan...7.25% interest...and it's variable. I'm trying to consolidate it under my direct loans which will make it fixed and a lower interest rate. I hope that my rant reaches someone out there to prevent my current situation.

[TheCommuter, BSN, RN]

An excellent piece of advice I've always followed is to never incur more student loan debt than you can reasonably earn in one year.

There's a private trade school in southern California called West Coast University that offers a generic BSN program with all prerequisites included for $132,000. The repayment on that amount would exceed $1,500 monthly, yet potential students still make plans to attend this school due to the culture of instant gratification that has permeated society. People are willing to pay dearly for convenience.

Sometimes it is better and less costly in the long run to defer the gratification.

[NickiLaughs, ADN, BSN, RN]

An excellent piece of advice I've always followed is to never incur more student loan debt than you can reasonably earn in one year.

There's a private trade school in southern California called West Coast University that offers a generic BSN program with all prerequisites included for $132,000. The repayment on that amount would exceed $1,500 monthly, yet potential students still make plans to attend this school due to the culture of instant gratification that has permeated society. People are willing to pay dearly for convenience.

Sometimes it is better and less costly in the long run to defer the gratification.

Completely agree with the instant gratification scenario. Sadly my case wasn't completely that, it was more "I need to increase our income in order to not be homeless ASAP." Unfortunately, the desire to own a home, and complete my BSN were cases of instant gratification that greatly compounded the debt. I doubt I'm alone.

I finally just now realized, education is not a right, it is a privilege, I get it.

[Nurse SMS, MSN, RN]

It is a shame so many are pushed into making some critical life decisions at an age where the ability to see long-term is rather nonexistant. Your desires for your life were not wrong; you simply didn't have the kind of guidance you needed to help you execute a good plan. I am so sorry for that. I hope you are able to get this burden restructured so that you are able to not feel it weighing on you every day. For future financial management, I highly recommend Dave Ramsey. He has a religious program and also info for those not interested in the religion (like me), just the good sense financial management and debt reduction. It isn't easy, but after a year or two the rewards are amazing.

Best of luck.

[NickiLaughs, ADN, BSN, RN]

It is a shame so many are pushed into making some critical life decisions at an age where the ability to see long-term is rather nonexistant. Your desires for your life were not wrong; you simply didn't have the kind of guidance you needed to help you execute a good plan. I am so sorry for that. I hope you are able to get this burden restructured so that you are able to not feel it weighing on you every day. For future financial management, I highly recommend Dave Ramsey. He has a religious program and also info for those not interested in the religion (like me), just the good sense financial management and debt reduction. It isn't easy, but after a year or two the rewards are amazing.

Best of luck.

Thank you, I will check him out, I currently have no financial guidance.

[OCNRN63, RN]

If I could give one piece of advice to new nurses, it would be to start saving as soon as you get that first paycheck. Don't get caught up in spending and using credit cards. I learned this lesson the hard way. You never know what can happen to you down the road.

[Quickbeam, BSN, RN]

OP, I just want you to know your parents did you a tremendous service with their ultimatum. It may not feel that way but you now have coping skills that some of your peers only dream of. I still have 40 year old cousins living in their parents' basement waiting for "the right time" to become adults.

This economy has created chaos with so many of us, from young to old. You are not alone.

[Esme12, ASN, BSN, RN]

An excellent piece of advice I've always followed is to never incur more student loan debt than you can reasonably earn in one year.

There's a private trade school in southern California called West Coast University that offers a generic BSN program with all prerequisites included for $132,000. The repayment on that amount would exceed $1,500 monthly, yet potential students still make plans to attend this school due to the culture of instant gratification that has permeated society. People are willing to pay dearly for convenience.

Sometimes it is better and less costly in the long run to defer the gratification.

:eek::eek::eek: WHAT???

[llg, PhD, RN]

I really respect you for taking responsibility for some of the bad decisions you have made in life -- and your sincere desire to start making better choices. I wish you and your family the best of luck.

I also recommend that you read Dave Ramsey's material. Yes, he has a religious slant that is not for everyone (including me) ... but he offers some great information, advice, and general life philosophy about living frugal that is valuable. You need to learn to live even more cheaply than you have been living and that will not be easy.

You also need to look very carefully at ALL aspects of your financial life and ALL possibilities with an open mind-- e.g. Is there any way your husband can earn any money now without having to spend more money (and go into more debt) for re-training? Maybe the best solution is for you to live on your earnings alone (picking up some extra shifts, etc.) while he becomes a full time house husband and child care provider. That might be financially better until your baby goes to school. The cost of child care and the cost of his retraining may not be worth it at this time time. He may not WANT that solution, but the math may work out best that way. Your earnings as an RN should provide food and shelter for the 3 of you. It may be another foolish decision to spend money on childcare and more money to send your husband to school. Or maybe he could take a few classes online from home while he takes care of the house and child. But don't go deeper into debt because his ego doesn't want him to be a stay-at-home dad.

[noahsmama]

I recently consolidated my private student loans with a Wells Fargo consolidation loan. The nice thing about this particular loan is that I got a lower interest rate -- most consolidation loans just stretch out the time period for paying off the loan, but at the same interest rate.

I also found out that the interest rate you can qualify for is somewhat negotiable. They initially offered me a rate that was only 0.5% lower than my previous rate. I told them it wasn't worth it to me to switch for such small difference, and lo and behold, they discovered that they could come down another 0.5% -- so I've gone from 5.75% to 4.75%, which is saving me $120/month (my payments went from $500/month to $380).

So, I recommend giving Wells Fargo a try if you haven't already done so.

Good luck!