To borrow or not borrow (Stafford loans)

Trauma Columnist · Dec 19, 2003

Hi there - I am in the same boat! I am doing a combined BSN/MSN and will be done in Dec 05 (yeah!). What I looked at was the number of years I plan on working after I get my degree - 20 and the expected return in the form of wages that I would receive. I will be in debt about $25K when I finish. Good luck.

llg, PhD, RN · Dec 19, 2003

The answer depends on your personal financial situation and your ability to manage your finances well after you graduate to pay back your loan. But for most people, a small to moderate-sized loan is do-able. I have lots of friends who had/have loans in the $20,000 neighborhood and they are fine.

However, as you well know, it will influence your financial life after you graduate. You won't be able to afford a few luxeries for a while or may have to make some other sacrifices to pay it back.

What I did after graduating and having a small loan ($12,500) was to continue to "live like a student" for a little while after graduating so that I didn't spend as much as I might have. I didn't buy a new car right away, got a cheap apartment, etc. I put the money I saved into paying off the loan quickly.

Good luck,

llg

georgia peaches · Dec 20, 2003

Don't borrow unless you just *have* to.

I graduated with my Physical Therapy degree in 1995, along with an $18k loan balance.

I'm still paying on it, but it shouldn't be but about another 2 years until it's completely dead.

I don't regret borrowing the money at all (I figure, if people regularly pay $20k for a car, then I am certainly worth investing that amount in).

At the same time, it sure would be nice *NOT* to have to make that monthly payment now.

Just my 0.02

John

memphispanda, RN · Dec 20, 2003

I took out all the loans I possibly could to pay for school/living expenses. I didn't qualify for much--Stafford and Federal Nursing loans only. But I can work off my loan balance through the hospital. It will take 5 years of working at the hospital to have the entire balance covered.

mrdoc2005 · Dec 20, 2003

Just like others said "only barrow if you have to". But, keep in mind of what this loan will allow you to do-- finish school and make money for years to come.

Look around before you barrow. Do not just go with the bank the school suggest. For example, I have a loan with a 1.2% fixed rate for 20yrs (if I choose to keep it for that long) from American express. The lost that any of my friends have is around 3%. Check with your local banks and also with insurance companies such as State Farm and Alfa. They also offer student loans.