Tuition Waiver Programs

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So I am attending a 18-month RN diploma program at a local community hospital. The hospital, like many in our area, offers a full tuition waiver to anyone willing to sign a contract with them. They will cover 4-semesters of tuitions, state board fees, graduation fees and any licensure registration fees.

In return, you must sign a contract agreeing to work for them for 36 months. If you do not fullfill this 36-month obligation you are required to pay back whatever amount you owe, interest and a small penalty. After graduation you must accept whatever position they have available and the current starting payrate for non-experienced RNs.

My question is, Have any of you signed any such contracts? Would you recommend signing such a contract seeing that you are guaranteed employment upon graduation? Can you see any possible problems with contracts like this?

I've already decided what I personally am going to do and yes, I can see upsides and downsides.

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Specializes in multispecialty ICU, SICU including CV.

I would do it if you think the hospital you are going to be placed at is good and you think you could stand to work there. Definitely do some research on the working conditions (staffing) and benefits/pay, etc. though.

Free tuition is always good. Just be aware that you are going to be the lowest educated RN sitting for the boards out there with just a diploma though. It will be hard for you to move up the career ladder without more education. On the plus side, getting 1/2 a 4-year degree for free is pretty awesome.

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Specializes in Med-Surg.

I agree with missbecky. Getting free tuition is a pretty good deal.

After the graduation, you need experiences anyway. you need to start from somewhere.

Most hospitals have employee education support benefit that pays for the education. so, you might be able to further your education while you are working for them. :nurse:

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Thanks MissBecky, I do intend to go back for my bachelors after I have been working for a year. Our program is switching to an ADN next year, not sure if we will be grandfathered in or not. Currently our program is already completing the course-load necessary for an ADN the program just hasn't recieved approval to award an ADN yet. Essentially I will have the same amount of education as those completing any of the local ADN programs, although I know that is still far less than a BSN!

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Hi jadedgreeneyes~

I am hoping to find a program similar to yours, but I have not had any luck. I was just wondering what state you are in? I'm in California and I haven't found any tuition waiver programs like that here yet. In this economy, it's great to have a job lined up before you graduate. It sounds like a good opportunity. Good luck! :)

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I went to school on the HRSA nursing scholarship, got two years of tuition plus a monthly stipend toward my BSN, and only had to agree to work for two years after graduation. So, working for three years for a diploma seems like way too much in my opinion. Plus, you will likely be stuck working for that hospital, like it or not, since you would probably have a really hard time finding a job anywhere else with just a diploma.

What would be the starting wage for a diploma RN at that hospital?

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Specializes in Critical Care; Cardiac; Professional Development.

Three years seems pretty high to me too. I have signed one of these with a local hospital - for every semester they cover, you agree to work for them for six months or pay the money back. Nothing in the contract about interest or penalties. I see it as a free student loan if it doesn't work out. I will still interview everywhere and seek out the best situation for me. If I don't wind up working there I will simply write them a check for the amount of the loan.

To me, it is just a student loan with a good chance at employment at the end. Employment though is not guaranteed. I will still have to interview for internships with the floor managers. However, recipients get preference over outside applicants, both for internships and externships. I am starting an externship in CC step down with them this summer - should help me build contacts and get a feel for whether it is a good place to work, plus some valuable experience. So far, I like what I have seen of the place. Everyone I have been in contact with so far has been there for around 10 years, which is a good sign. We'll see.

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Our local hospital is doing an on-the-job CNA training program. At the CC next door, the cost for CNA is $175. The book is around $50 and scrubs can be had for around $30. That is $255.

The hospital program is offered if you will sign a contract to work for them as a CNA for 2 years. If you don't fulfill that obligation, you are expected to repay $2500. That is a HUGE jump up from $255!!

Now that I am thinking about it, 2 years is a long time to have to work for a CNA class anyway...

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Specializes in Addiction / Pain Management.

Free tuition sounds good; I used to see something similar in the IT world back in the 1980's and 1990's.

Have an lawyer review the contract; is there a buyout?, if you lose employment both voluntary or non-voluntary?, if the hospital decline's to hire you are still liable for the $$$?

Be careful; a great deal can morph into a financial albatross rather quickly.

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I'll try to answer everyones questions at once....but thank you all for your excellent advice!

red2003xlt- Yes, there is a buyout option if you decide to decline employment or do not work the total 3 years. If the hospital hs no positions open suitable to your level of training then your tuition is forgiven and you no longer have any obligation to the facility.

GM2RN- Our local hospitals do not distinguish between the different levels of RN education. Anyone with a state license regardless of designation starts at the same wage based on experience. This hospital in particular starts between $22-$25 hourly with no experience.

happymommy3- I am in Virginia! Just a little ways from you in CA!

positivern- That's exactly what I had in mind! I'm hoping to work at this facility for 1-2 years in order to get some experience and then do an RN to BSN program.

MissBecky- Although technically we have less education we are required to completed 2x the amount of clinical hours that any of the local ADN programs require. That to me makes a HUGE difference and is why I chose this program!

Thanks Everyone!

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HI i signed a contract with a hospital and i hate it three. i have to work for them for 3 years and i dont see myself making it that long. if i were you i would not recommend signing any contracts with any hospital. i am currently trying to find someone to buy the contract out and i am having a hard time doing so. DONT SIGN THE CONTRACT!!!! PLEASE!!!!

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I have worked for Hospital Healthcare where other nurses signed these contracts. Pay was low for new grad RN at this hospital, they used you were they needed you (not neccessarily where you want to be) many times this wasn't even med/surg, but more often in the extended care part of facility(SNF) Hospital made lots of verbal promises, then didn't follow through with them.

Also, many of the RN's did not complete the contract, thus, owed a lot of money to facility. I would talk to other nurses in your Hospital, who have done this, and see if they would do it all over again...i doubt it.

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