The Largest Student Loan Actually PAID OFF!

Nurses General Nursing

Published

I am just curious about something here.

I am very, very concerned and alarmed at the number of folks that I have seen on the board that have student loans of $60K $80K $100K for an undergrad.

The payments on that are so incredibly staggaring I don't see how anyone can make those payments and live a decent standard of living unless you have a spouse that is rolling some money in.

I think it would be a very, very healthy thing to know if anyone has ever finished paying off their student loans, the amount you paid off, and if you have, let's say, over $60K and are currently in payback, would you advise it to others?

I just feel that there is a huge difference in a physician taking out $100K in loans for med school when he will probably be making that or more in his first year, than an RN who will probably be making half that figure as a new grad.

Any thoughts.

Specializes in Government.

Don't know why I'm posting this but I feel moved to do so. I really have a lot of sympathy for those shouldering the tuitions of today. My first degree was 1973-1977 and I graduated owing nothing due to Residence Life jobs (RA and Hall Director). I'm no rocket scientist...it wasn't that hard to "work your way through", especially at a state school. My accelerated BSN program took all my savings but I also got out with no debt in 1987.

Because of this thread, I called my schools.

The tuition at my first school has increased 15 fold in 30 years.

The tuition at my accelerated program has increased 5 fold in 19 years.

My salary certainly hasn't seen that kind of jump. I feel lucky I went when did but I feel dreadful that the burden has gotten so horrific. Conditions being the same, I'd have not been able to go to school now. It's a crime.

Specializes in Ortho, Med surg and L&D.
I am just curious about something here.

...

I just feel that there is a huge difference in a physician taking out $100K in loans for med school when he will probably be making that or more in his first year, than an RN who will probably be making half that figure as a new grad.

Any thoughts.

Hello,

My Associates degree didn't require me to take loans, phew, However in order to complete my BA I had to borrow 65K. In total my graduate school should end up as another 65K, (42K tuition and then living costs on top of that). The total, without interest is 130K.

So, it will be monthly payment of 1000 dollars for 15 years, (or so due to interest). That is my base amount to pay. If I can manage to do more, then I will, if not, then I will have to renegotiate. Oh wait, I forgot the Army has a loan repayment program and upon commissioning they might pay one of my loans up to 30K but, I only turned in the paperwork for one at 23K. So that lowers my total to 107K.

It is a lot, definately. However, without the loans school would not have been an option. I wanted to go to school, to learn, not just to earn, both the learning and the earning are benefits of this costly education. I went to both private and state schools for the undergrad and associates. The private schools cost WAY more than the state schools, almost triple the cost.

Gen

p.s. if I remember and am still a part of this board when I pay them off I will create a thread to state the celebration. :)

p.p.s. yet, I am also not done with school and plan to continue post masters, yet, I do not think I will need the loans, as before, for that

Specializes in Ortho, Med surg and L&D.
Well, that is why I posted this thread, because alot of people are taking out the loans, but I am very curious how they are living after they actually enter the pay-back period and if they are, now that they are in payback, would they recommend taking out large loans to others.

Hello,

Well, I think the loan really only needs to be "large" enough to cover your cost of attendance. Anything over that seems out of line, to me anyhow.

Gen-queen of ramen noodles, rice, potatos, mac and cheese and so forth...yet, I will indeed splurge and keep myself with toothpaste, soap and so on. :)

Specializes in Ortho, Med surg and L&D.
Don't know why I'm posting this but I feel moved to do so. I really have a lot of sympathy for those shouldering the tuitions of today. My first degree was 1973-1977 and I graduated owing nothing due to Residence Life jobs (RA and Hall Director). I'm no rocket scientist...it wasn't that hard to "work your way through", especially at a state school. My accelerated BSN program took all my savings but I also got out with no debt in 1987.

Because of this thread, I called my schools.

The tuition at my first school has increased 15 fold in 30 years.

The tuition at my accelerated program has increased 5 fold in 19 years.

My salary certainly hasn't seen that kind of jump. I feel lucky I went when did but I feel dreadful that the burden has gotten so horrific. Conditions being the same, I'd have not been able to go to school now. It's a crime.

Thank you for posting that.

It seems that some folks may not have realized that "large" loans are needed just to cover the cost of tuition.

So the "large" of the loan is relative to the large costs of tuition.

Gen

This is kind of a tangent but relates to the discussion so I have posted it for you all. As a student worker I would frequently talk with an instructor I worked with about how much my education was costing me. One day he left this on my desk for me to read.

What do you think of it?

--------------------------

On My Mind

College Is a Bad Investment

Richard Vedder, 06.20.05

Forbes

Pouring more taxpayer money into universities doesn't lead to prosperity.

When university presidents plead for government money, they often make an argument for social investment. Pump funds into higher education and the economy will grow, they claim. After all, this is an information- and skill-based age in which college graduates are far more productive than their less-educated peers.

True. But the evidence suggests that increased public funding for universities doesn't lead to greater prosperity-and may even reduce the chances of it. Compare the growth in real per capita income in states that spend a lot on higher education with that of states that spend less and a few surprises show up. Over the past 50 years low-support New Hampshire outdistanced neighboring Vermont on nearly any economic measure, though Vermont spent more than twice as much of its population's personal income on higher education (2.37% versus 1.15% in New Hampshire). Missouri, with modest state university appropriations (1.32% of personal income), grew faster than its neighbor to the north, Iowa (at 2.41%).

Similar examples abound. Using data for all 50 states from 1977 and 2002, I compared the 10 states with the highest state funding for universities against the 10 states with the lowest. The result: The low-spending states had far better growth in real income per capita, a median growth of 46% compared with 32% for the states with the highest university spending. In 2000 the median per capita income level for the low-spending states was $32,777, 27% higher than the median for the 10 states where higher education got the most state money.

The results were the same when controlling for a state's oilfields or other energy sources, the age distribution of its population, the prevalence of labor unions, the tax climate and other factors that could affect growth-even the proportion of college graduates. This despite the fact that the states that were growing most quickly tended to have a high proportion of college graduates.

How could this be? Colleges have devoted relatively little new funding over the past generation to the core mission of instruction (spending only 21 cents of each new inflation-adjusted dollar per student on it), preferring instead to assist research, hire more nonacademic staff, give generous pay increases, support athletics and build luxurious facilities. And while in the private sector companies have learned to get more work out of fewer employees, the opposite appears to have happened in higher education. In 1976 American education employed three nonfaculty professional workers (administrators, counselors, librarians, computer experts) for every 100 students; by 2001 that number had doubled.

Another piece of the puzzle: Only the weakest of positive correlations links funding level and enrollment. Even if students enroll, they don't necessarily finish school. Nearly 40% fail to graduate within five or even six years, suggesting that many who attend universities don't much benefit from them.

Yet another explanation is one Forbes readers know all too well. Taxes reduce private-sector activity. People who must pay high taxes tend to work and invest less and also tend to migrate to lower-tax areas. In other words, increasing funding to universities means transferring resources from the relatively productive private sector to higher education, which tends to be less productive and efficient.

So what should we do? College is still a decent individual investment, certifying that the graduate meets minimum standards (often missing in high school) for competence, intelligence, maturity and literacy. But we should rethink the nature and magnitude of public support for universities. State governments, facing rising Medicaid bills and demands for primary and secondary education funding, are already slashing their support. I hope and expect this trend to continue. Big changes are coming to higher education. They are overdue.

Richard Vedder, professor of economics at Ohio University and author of Going Broke By Degree: Why College Costs Too Much (AEI Press)

Specializes in Med-Surg, Trauma, Ortho, Neuro, Cardiac.
I don't know anyone with excessive student loans as a nurse but I met one of the residents who did a stint in our ER who was close to $250,000!!! Even for a doc I find that a tad extreme!!! You could own a very nice home around here for what that payment would be. :uhoh3:

As for student loans I couldn't find anywhere the actual default rate, but it's pretty high. I think some of the sites like Fannie Mae quoted that their default rates on student loans were DOWN to only 14%. I think that's sickening that AGAIN people borrow money that they can't afford to pay back so they just don't. :nono:

I had a friend who graduated with a combined med-school and undergrad debt of $250,000.00. It's staggering.

Specializes in Med-Surg, Trauma, Ortho, Neuro, Cardiac.

I paid for my ADN myself. It was a cheap technical school, but NLN approved for the ADN. I'm amazed at how cheap it was to attend. I worked full time as well to pay the bills.

Now I'm still working full time and I took out loans to get my BSN because I don't want to use my savings, and any money I save goes into the household expenses. I made the decision to go to a private online school (although reasonably priced as far as private online schools go), instead of the cheaper RN to BSN program here because I was working nights at the time and online seemed the thing to do.

I have borrowed only $1000.00 per semester and typically spend around $1800.00, so I am incurring some out of pocket expense.

My payments, if I don't continue on to grad school will be only $50.00 a month for 10 years. But knowing me I'll pay it off early.....if I don't go to grad school. To me it's worth a little debt not be be so broke now, but I don't want my payments to be too horribly high. (I'm broke anyway. LOL)

Of course, I'm off topic because you were asking about those with very high debts. :)

I have to wonder like the article above, is the extreme debt really worth it?

well, i guess i'm one of those taking on "large" debt... and i thought i was doing pretty well. :uhoh3:

here's my story:

$5k in subsidized stafford loans from undergrad (i have a BS and an MS in other fields) - not currently accruing interest

right now, i'm in a direct-entry masters that is 3 years long and costs $30k (!!!) a year. I have a scolarship for $15k each of the first two years - so that's $30k for the first two years, and $30k for the thrid year (though i'll have my RN by then and hopefully be working, so maybe will need less in loans!) for $65k total counding undergrad.

Now, about half of that is subsidized stafford, so no intrest while i'm in school, and half is unsubsized stafford, so 6.8% intrest right now.

BSN2009, whaddya think? Am I getting myself into trouble? I'll have an MSN-FNP degree after i'm done, but plan on working as an RN for at LEAST a year after graduation before pursing FNP jobs. I do live in a $$$ city, not much I can do about that!

:stone

janony

Specializes in ICU.
I had a friend who graduated with a combined med-school and undergrad debt of $250,000.00. It's staggering.

Aren't med school loan repayments often covered by the doctor's first employer? I have this idea in my head that a lot of med school loans are taken care of... not sure where I got this from though. :)

Specializes in Emergency.

Where I'm living, most students get student loans from the government. You have no payments during school and during your first six months after graduation. After that 6 months, payments and interest starts.

A bunch of years ago, to prevent students from defaulting on the debt, they enacted some type of law that carries your student loan debt over with you even if you declare bankruptcy. No way to get out of it now (although I'm sure theres a loophole somewhere that someone will figure out).

Specializes in Looking for a career in NICU.
Aren't med school loan repayments often covered by the doctor's first employer? I have this idea in my head that a lot of med school loans are taken care of... not sure where I got this from though. :)

Nope...DOCTOR'S were the major reason why you can't bankrupt student loans anymore.

What was happening, was that doctor's were graduating with on average $200,000 in debt...and once they got a job, bought their big house and furnished it...filed for bankruptcy in their 2nd to 3rd year after graduating.

They STILL had an extremely high salary, so they could well-afford to pay cash and not use credit for several years until their credit scores went back up...to them, it was worth it not to pay it back.

That is why the courts had to put a stop to it.

Specializes in Not specified.

Social scientists will have much to write about in the years to come about the effects of huge student loan debt on people. It is intimately tied into the concept of the "quarter life crisis"-- 20-somethings moving back home with their parents with expensive college degrees, barely able to land retail jobs and trying to pay off student loans. I cannot imagine that years ago people could start a family and buy a home on one income with only a high school diploma.

While I am well saddled with student loan debt (I was an independent all through my entire college career) I think it is an investment that no one can ever take away from me. No one can ever take away my life experiences or unique perspectives that were shaped and influenced by my years of college. I met and worked with amazing people, lived in amazing places. When I am on my death bed I won't be lying there thinking, " I wish I did this or wish I studied that... if only I was brave enough to take the plunge..."

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