What do you think is the best type of loan for nursing school

RNS5 · Jun 30, 2009

My nursing program starts in August - it is an accelerated MSN/NP for students who already have a bachelors. Even with working part time I am looking at multiple thousands of dollars in loans as I am going to a private school. School loans are the norm for most students in undergrad, and an absolute must for those of us grad students who are not heirs to some fortune. So on top of the 40K I have outstanding in UG loans - I am looking at close to 90K more by the time I graduate.
As a good friend once told me - educational loans are the best debt you can have. You can't wear a house on your back, your education is part of you.
It is pretty rare to not be able to qualify for federal subsidized and unsub loans. Like really rare. I think for UG its something like 19K a year whether you are a dependent or not. Then there are plus loans, also federal, with a slighly higher interest rate. All of these offer deferments while in school, (and while out for a certain amount of time, that can be extended easily for financial difficulty). Beyond this many schools offer types of loan forgiveness if you work in non-profit for a pretty large chunk of time ...
If you are taking on nursing school and seriously want to be a nurse - honestly, don't worry about taking on debt. The field will absolutely continue to grow. Hell girl, I am 45 and taking on more than a mortgage worth of loans. Because I know that this is a solid field, and exactly what I should be doing, and like most of you all, will have to cut back if not quit work. Good luck to you.

Thanks--you made me feel better about the whole situation! It is nice to get different people's views on this subject.

Agrippa · Jun 30, 2009

You really should just go and have a nice meeting with your financial aid counselor at your school. They should have info on how to make going to your school easier - its their job. Its in their interest to make sure you find some way to finance your education.

Also, there are a lot of resources on the internet about how to navigate FAFSA. Government websites are the most reliable.

lblack126 · Jun 30, 2009

Hi again Tad -

I was incorrect about sub plus unsub amounts if you are a dependent. The totals for dependent students (those who are still claimed on their parents taxes) are about 11K. That said, Parent Plus loans can cover the rest if necessary. The figure I quoted was for independent students (over 22 -I think - or can prove they are paying independently if younger than that.)

For more info check the FAFSA website and/or the link below. The only time I have heard of someone being turned down for Federal loans is for independents with very heavy mortgages - I mean really heavy. As far as I know, for plus loans you and/or your parents do have a decent, but not great credit score. As far as I know for regular sub/unsub credit scores are not an issue.

Should mention that my earlier UG degrees are a far cry from nursing! (Philsophy and Film don't have an A&P or Orgo requirement :). So this is education will be all new for me. I did my pre-req's at a community college, which was really inexpensive, and doable while working. Not sure if you are doing a BSN or ASN - the community college that I did my pre-req's did offer some unique incentives for possible ASN's particularly if your grades in High School are good.

Once again, good luck, and good loan hunting! Keep us posted as to your loan hunt :).

http://www.collegeanswer.com/paying/content/pay_under_fed_cmp.jsp

metal_m0nk, BSN, RN · Jul 1, 2009

Also, don't forget about the Federal Work Study program if you're not currently employed and looking to work part time while taking classes. Most school jobs offer flexible schedules and most participating employers understand and respect the demands that students face in and outside the classroom. Also, since the majority of jobs are on-campus, you don't have to be concerned with commute time and/or costs. If you're looking to have a little cash in your pocket for books, emergencies, or a daily espresso, it's a viable option.

I agree whole-heartedly with those who've said not to worry about student debt. Think of it as an investment...

If you were to purchase a brand new vehicle on credit (which a lot of people do at some point in their lifetimes), you could be paying anywhere from $13k - $150k for it, Vehicles depreciate in value for every second that you own them - not much of an investment there - and interest rates and monthly payments can be through the roof. With student loans (especially those backed by the federal government rather than private financial institutions), the interest rates are low (we're talking 5-6%), fixed, and loan servicers like Direct Loans offer extremely flexible repayment plans, deferments, and forbearances in times of financial hardship.

While student loans might seem like a money sink, and not much of an investment (like say, real estate would otherwise be) - in all actuality, they really are. While they might not offer the immediate and steep returns that real estate investment would (and even that's questionable now since the real estate market has gone down the crapper), the end result of them (the degree) will put you in line to earn significantly more money over your lifetime than not having a degree.

The rub though, is that you've got to stick it out for the long haul. If you don't graduate, you keep the debt but never get to see the return on your investment.

guiltysins · Jul 1, 2009

My schooling was thankfully covered by FAFSA. I have a combination of grants and federal loans. I'm a dependent which definetely makes it easier for me because my mom is on disability so of course our income isn't that much. There is a downside to financial aid though, a lot of loopholes and ways that you can easily lose it. You can't take ANY electives unless your program allows them and of course most BSN nursing degrees don't. Also for one type of grant that we have in NYC called TAP, there's a limit of how many semesters you get it. I can only get it for four years and I'll be in school for five so that last year I won't have that grant regardless of my need. I feel like I'm choked by financial aid sometimes because if I get a job and make enough to file taxes about half of my financial aid goes down the drain and I can't afford to pay my 25K school so the most I've been doing is volunteering because I can't afford to lose ANY of my financial aid, even if it's only like $1000. My GPA was over a 3.0 this year so I got a little grant/scholarship from my college. I won't graduate until 2012 and seeing as this school raises tuition every year, I'm going to pull for a GPA over 3.5 because there are more school grants for that. I'm just hoping I find a way to cover it all. I can't get a parent plus loan because it CANNOT be deferred until after graduation, you have to pay it through college and as I said, my mom is disabled so she has no money and she's already stuck with my sister's Sallie Mae loan that she co-signed for so I'd never burden her with more.

I've NEVER gotten enough financial aid to cover books, living expenses, transportation ect. It only meets the cost for tuition and fees. I probably won't be able to work till after graduation with the exception of internships, preceptorships ect which is okay because I want to just focus on my studies but yea it sucks. The fall semester I thankfully only owe the school $200, last year I owed them about $2200 which was no easy thing. I had to get money from my sister and other family members. My loans so far are at 7500, so by graduation I should only have about 30-35K in student loans which is fine with me since my other sister owes about 90K

metal_m0nk, BSN, RN · Jul 1, 2009

I've NEVER gotten enough financial aid to cover books, living expenses, transportation ect. It only meets the cost for tuition and fees. I probably won't be able to work till after graduation with the exception of internships, preceptorships ect which is okay because I want to just focus on my studies but yea it sucks.

Have you looked into the Federal Work Study Program? It's an option when you fill out the FAFSA, whether you'd like to participate. It becomes part of your financial aid package, I believe.

88pomme, LPN, LVN · Jul 8, 2009

Everyone qualifies for federal parents plus loan (if your still considered dependent) it has a locked in rate which is by far better than a private loan....

when do you put dependent and when do you put independent when filling out the FAFSA? I have quit my job, moved back home, and am basically having my parents help me. But, they are almost retired, so I didn't want their finances to be considered.

would i be a dependent or an independent?

thanks

Zookeeper44, RN · Jul 8, 2009

Wondering why no one has mentioned service cancellable loans? Is Georgia the only state that still has those? I will take those 1st if awarded, then I've been approved for enough subsidized loans to cover my expenses if I don't get the cancellable loans, I'll take the substidized loans as my second choice.

I have 2 other degrees and I have never even dreamed of taking on enough debt to actually live on AND pay for the expenses of college itself...I've always had to find a way to work my way through school :icon_roll

Wishinonastar, BSN · Jul 8, 2009

Definitely Stafford. I never wanted to take on student loan debt and made it through undergrad without it. But grad school is different. Unless you are rich there is no way you can do it without some financail aid. At least the schools in my area! The credits are around $600 each, sometimes more, and with books and everything else it is a huge investment. I consolidated all my loans when I was done, and my payments are still around $200 a month. Not bad for about $40,000 (including the interest). I will be paying for the rest of my career. I can't say I regret it, but I really did not understand how this would affect my finances my whole working life. I have not made more money with an advanced degree, though I have had better quality jobs. Everything is a tradeoff. You have to do what is in your heart.

PeopleHelper · Jul 8, 2009

Try this website below. I found it in a Student Loan Article on the New York Times website

http://studentlendinganalytics.com/ratings.html

FireHorseNinja · Jul 8, 2009

I am 42 and married-- and I don't qualify for grants either. However I was given a Safford loan, both sub and unsub portions. These federally backed loan amounts are usually based on your Cost Of Attendence index (COA) i.e. your program cost, major, etc... I was given more than I will use, so I will be giving some back to save on payments later.

The other thing is that there are MANY loan repayment scholarships out there for nursing students.

Good luck!

BSN student- Aug 2009'

RNS5 · Jul 8, 2009

Wondering why no one has mentioned service cancellable loans? Is Georgia the only state that still has those? I will take those 1st if awarded, then I've been approved for enough subsidized loans to cover my expenses if I don't get the cancellable loans, I'll take the substidized loans as my second choice.
I have 2 other degrees and I have never even dreamed of taking on enough debt to actually live on AND pay for the expenses of college itself...I've always had to find a way to work my way through school :icon_roll

Zookeeper, what exactly is a service cancellable loan? How does it work? I've never heard of such a thing.

:thnkg: