Posts Tagged ‘borrowing money for nursing school’

Government Profits on Defaulted Student Loans?

Monday, January 10th, 2011

Student Loans

The government makes a profit on defaulted student loans.

The government makes a profit on defaulted student loans.

The government makes a profit on defaulted student loans.

I repeated that three times, cause that’s how many times I read this line.

{ According to White House budget figures for fiscal 2011 ending in September, the federal government expects gross recovery of between $1.10 and $1.22 for every dollar of defaulted student loans}

So says this article on student loans by Melissa Korn in the WSJ.

It took me a moment to realize the government was making a profit on DEFAULTED student loans.

Bad Debts

I know my recovery rate on bad debts is about 10 cents on the dollar-if that?  I wanted to call my up-front office  folks, and the local collection agency we use and say, “what’s the problem?”

But you soon realize the power and outreach potential of the federal government.

Collection options of the federal government:

  • Ban you from further student loans
  • Take money from your tax refund
  • Charges interest and late fees and collects!
  • Garnishee your wages
  • Take part of your social security, or disability payments.
  • Student Loan Debt is rarely bankrupt-able.

You can run, but can’t hide from the long/strong arm of the federal government.

Federal Government Loan Collections

Do I blame the feds for trying to get back money loaned in good faith?  No of course not.

I just wonder why it is ok for the federal government to collect money that way, and us private citizens who are owed money for a service can’t do the same.

I have forgiven so many debts in my 25 years of practice, it makes my accountant’s head spin.  But there are times when folks that can pay, just decide they would rather buy a truck instead. That is aggravating…

Student Loan Debt

Will they be happy when the loan is due? (by daveynin c.c.)

I get so many questions about where to get money for nursing school.  My replies don’t make many people happy.  Cause the best way to pay for school is to work and save the money or get a scholarship.

Student loan debt is forever, and has caused enormous heartache for many young families trying to get by, while paying back their college debt.

If you are prudent with your borrowing and can get your education repaid in a reasonable time frame, without going hungry, fine.

But don’t think the Feds are going play nice when you don’t pay them their money!

Nurse Student Loan Payback Help

For those of you struggling now, remember the NELRP federal repayment program is taking applications for a few more weeks.  See this post about the details and application for the NELRP Nurses Repayments!

Comments?

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Posted in student loans | 5 Comments »

H.S.Graduation Is Near: Ready To Put That Ball and Chain Around Your Neck?

Monday, May 17th, 2010

High School Graduation

Graduation is near.  High school seniors are  excited about moving on with their lives.  They and their families are looking forward to a new horizon-the options are unlimited.

In my case, I knew I wanted to be a Doc from my early grammar school years.  Don’t know why, no medical people in my family.

Now my idea of rebellion back in the mid-seventies was to change my major to psychology/pre-law for one year.  I took a few social science courses and realized, I liked “real science” much better than the touchy-feely stuff…..So back I went to my Biology major/Chem minor/pre-med track.

Keep in mind, I was young then-started medical school at age 19, so I really didn’t know what I was getting into.  First day in Anatomy-(cadaver intro)-the smell comes back to me just thinking about it.

The point I  promise I am getting to, is as a high school senior, you are really  pretty stupid, when it comes to life.  And here we are, encouraging these kids to  borrow money. They will then have to pay back it all back, with a lot of interest.  A debt that may be hanging over them ’till forever, and ever, AMEN!!!!

While I give information about where  and how to receive assistance to go to nursing, or any other school, I discourage use of borrowed funds-if at all possible.  If you can get through college without a student loan, you will be  far, far  ahead in life.

So you are ready to expand your education horizon, let’s review  the steps:

Step One -Admission process:

To start college, you must get admitted-by now this process should be well underway.

For an overview of what is going on now in school admission offices, this article in the Wall Street Journal has several great tips, and an interview with an admissions director at Penn State.

Step Two-Paying for School:

This list of links is of a general nature (not just nursing students), and where all students need to start.  Filling out the dreaded FAFSA application.  This is the road that all schools use to start the financial aid/scholarship/grant/student loan process.  So do it quickly if you haven’t yet started…

Seth Godin, has written recently about the train wreck that is occurring in our higher education system.  With students receiving mediocre educations, but huge debt burdens.   I think  the schools who figure out how to provide a quality education, with less money will be the winners of the future.

Nursing financial Aid/grants loans:

Now the following sites are focused on programs for nurses to get aid/grants/loans for school:

Step 3: For those finished with school, paying it all back. *If you are still in school, read this-to be prepared for the future!!!!

Nursing Loan forgiveness-  is discussed in this article from Nursing Link.
It mentions specific programs in California, Florida and Minnesota  have student loan forgiveness programs, specifically directed at nurses.
The qualifications vary state to state, so make sure you check out the rules for your location.  It may pay to work in an eligible facility till you get your loans paid back, then switch to your “dream job”….

The Millionaire Nurse Blog’s Nursing School Posts:

I have written several posts about the federal nurse loan forgiveness programs and paying back student loans:

Congratulations to all the seniors out there!  Please enjoy your new status as graduates of whatever institution you are finishing.  Then begin to plan for tomorrow-the bottom line is-there is no free lunch!!
Do you have any  new grads in your family or are you yourself moving forward with your education?   Tell us your stories, and any recommendations you have to help others with their futures.  Don’t keep your mistakes to yourself and allow others to make the same ones.

Nurses and Nursing Students:

Don’t Forget My Survey and Your Chance to win $150 Amazon gift card and other great prizes-for details check out this post HERE:

To take the survey now, click HERE!

I will be pulling the survey soon, so don’t put it off, and miss your chance to win!

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Posted in student loans | 5 Comments »

Student Loans: The Great Lie- 6 Ways to Avoid Them!

Tuesday, February 16th, 2010

Student Loans:

Student loan patter:

Student loans are worth the investment.  Everyone should go to college, even if you have to borrow to go.   You will earn a lot more money  with a college degree, and it will be no problem to pay back.

These are just a couple of the lies, or at best,  misleading statements about student loans.

In this article, in the “Wall Street Journal”,  Mary Pilon reports the case of a student loan, that had ballooned to $555,000.  Yes, that is a cool 1/2 million plus.

The loan belongs to a family doc, so what’s the big deal, they are all rich aren’t they??

Well the average salary for a family practitioner is $145,000 bucks a year-great salary, way above the national average.

However, with a loan that size, with interest accruing, even if half her salary went to pay back the loan, it would take more than 10 years to pay that back.  So great salary ain’t so great if half of it goes to pay back your student loan.

Borrowing for college:

Do I think it is evil to borrow money to go to college.  No, of course n0t.  Do I think it can be stupid to borrow $100,000 to pay for tuition, room, board, and beer, for a degree that pays on average 40, or 50 grand a year or less-yes!

So, before  following the herd and borrowing a pile of money to go to school.  Check out ways to decrease your burden:

  • Go to a less expensive school.
  • Go to school part-time.
  • Drive a clunker, and use car payment money to pay for food, or books.
  • Join the service, and let them pay for your education.
  • Get your employer to help pay the bill.
  • Work your butt off finding scholarships and aid.

The good news is that you can get an associates  (which usually takes 3 years)  RN degree at a public institution for very little investment.  Even a four year BSN at a public school is a bargain, but you can make it great by limiting your borrowing.

So before you call Aunt Sallie Mae to borrow a hunk of cash, think about it.  Make sure there is not a better way.

NELRP

And if you do borrow, there are ways to help pay back the money-see this post about one of the federal loan repayment programs -(NELRP)-  for working in an under-served hospital or clinic-as a nurse.

Reader comments:

What say you? Did you borrow money for a degree and now you’re having trouble paying back the money?  Did you waste money during your education on fun and games?

 

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Posted in Personal Finance 101, student loans, Uncategorized | 2 Comments »