Here’s the deal. I’m two years into college and I’m not stopping now. I have three years left to go, and with any luck, I’ll be making $60,000-$70,000 on my way out. But, I’m taking out private loans with my parents as cosigners because we agreed that I would be responsible for financing it. The smart thing to do would’ve been to first back up two years and start at a community college, and then back up another year and get myself into the right major at the right time. But it’s too late for all that and I’m going to keep borrowing because it’s what I have to do.
I didn’t qualify for a work study or any federal loans after my scholarships had been taken into account my freshman year and I ended up taking $11,500 out in a private loan, and paid half of it back after I was betrothed a few grand. I took out $15,000 last year, and I have to take out about the same this year after grants are applied. I’m $41,000 in debt with two years left. I’m working my tail off this summer but this debt is something that I have to live with and the stupidest thing I could do right now would be to stop going to school because of this debt. The less stupid (but still stupid) thing I can do is charge forward and get my degrees and find a well-paying job.
I’m just kind of thinking theoretically over here because it’s all a little stressful. I know I’m going to have to pay this off for a long time. My interest rate is some 3.7something % which I’m super-duper grateful for. But anyways, I’m not planning to marry or have kids right out of college, I just want to work, work and work some more. If I’m making $60,000-$70,000 a year, am I going to be able to get rid of a good chunk of my loans? If I live as minimal as I can for three or four years, will I be okay? It’s going to be a lot and really stresses me out just how much a lot is, but I’m in too deep to go back. Reassurance is what I really need right now, and I know my parents will help me out if I ever needed them to, but I don’t want to have to resort to that.
I don’t think People on this site can give you reassurance for being hugely in debt.
I see a lot of problems:
What if your parents don’t qualify for further loans?
Why are you so sure you will be immediately employed?
Some loans require immediate repayment. Some companies actually check credit scores before employing a candidate. It seems that they don’t want anything to compromise their property.
What if job options are limited to an area where the cost of living is insane? You have to eat and pay rent, pay utilities, cell bills, the loan, transportation costs, and professional clothing.
Okay, let’s say you get offered $60k per year. You pay immediate taxes with each paycheck. You don’t get that expected salaried amount. Being single and having no deductions reduces the take home pay. A lot of tech jobs don’t pay over-time. You are on the clock all day and weekend long. Your colleagues will want to eat out for lunches. You won’t be able to afford eating out.
@mom2collegekids and @thumper1 can also give you their opinions on experiences they’ve seen on CC with these types of loan issues.
You say you don’t qualify for federal loans. Why? You should qualify for $5500/6500/7500 per year, even if it is unsubsidized.
There was an article this month about a woman who had student loans and her road to paying them off. I think she had about $40k. Her main job was something in music marketing (she lived in Nashville) and she took a second job too. She was living with roommates, had a very strict budget, and paid about $2000/mo toward her loans. In contrast, her rent was about $400.
Paying off the loans can be done, but not without frugal living and a lot of determination.
You can’t get so focused on your loans that you forget about what you need to be doing to make sure you can get that great job once you graduate.
Head on over to career services on Day 1 when you get back to campus. Make an appointment. Do what they tell you to do. Have your on camera interview critiqued. Go to the workshop on interviewing skills. Let a professional re-do your resume. Make sure your professors know that if they’ve got a part time gig editing a book, fact-checking an article, helping to set up a departmental symposium, you are interested.
Some of this will depend on where you end up working. S has lived on an income amounting to about $15k/year for the past year. He has lived with roommates, has an 18-year-old car, and is VERY conscious of his spending. It can be done. Allow about 1/3 of your gross for the government, 401K, etc.
@“aunt bea” I’m eventually going to graduate with a BS in nursing, so jobs are everywhere. That’s one of the trillion reasons I’m pursuing it - that and the opportunity for growth and earning even more. I know I won’t get all of that money take home - this isn’t meant to sound snide at all but I’m a junior and college and I’ve been employed since I was 15, so I understand how that works. I can come back in live in my parent’s basement and work at the local hospital if that’s what I really have to do. My parents have excellent credit and have been reassured they will be able to cosign on a loan for the extent of my time in college.
@twoinanddone Beats me. My parents make approx. $105k a year. I had qualified for roughly $10,000 in financial aid (work study, federal loans) but then I reported roughly $10,000 in scholarships and financial aid decided to reevaluate and take it all away. Many of those scholarships carried over into my sophomore year and I qualified for even less in grant money. I don’t understand it. I’m fine with living frugal for a few years or more if that’s what I have to do, and I know my college education is listed in my grandparents’ wills. I’m absolutely not wishing death upon them any time soon, but that money is going to come into play at some point.
@4kidsdad I think I’ve read that before. My parents make ~$105k a year combined and my school offered me roughly $10k until I reported scholarships that equaled about that, and they took it all away. I don’t understand why they didn’t offer it, but it is not anywhere on any of my award notices from previous years.
@sylvan8798 Thank you! That’s what I intend to be, constantly budgeting, spending only on necessities, and living as frugal as I can. I’m hoping to find a nursing job in my hometown area - the cost of living is low and the hospital is close enough that honestly, I could walk or ride a bike and save that much more. Thanks for the tip.
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making $60,000-$70,000 a year, am I going to be able to get rid of a good chunk of my loans? If I live as minimal as I can for three or four years, will I be okay? It’s going to be a lot and really stresses me out just how much a lot is, but I’m in too deep to go back. Reassurance is what I really need right now, and I know my parents will help me out if I ever needed them to, but I don’t want to have to resort to that.
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live minimally for 3-4 years? Well, maybe if you’re LUCKY to get a high paying job that is near your parents’ home…but what if all the jobs are elsewhere? What if all the good jobs are in high rent areas?
I don’t think young people realize that a single person earning $60k+ per year has to pay a lot of taxes. I think young folks think that they’re going to have $60k in their take-home checks. After they pay state and fed taxes, FICA, and health insurance, that $60k will be MUCH LESS. And then after they pay rent, utilities, cell phone, car, car insurance, gas, food, professional clothing…there will be a whole bunch left.
I doubt that a 23-26 year old is going to live like a hermit unless he’s a loner. When I was young, single and working, we’d all go out to lunch and then go to happy hour on Fridays. I can’t imagine how it would have been if I had to live “minimally” during those years. Yuck!!!
@mom2collegekids I’m going into nursing and there are 4 hospitals within 20 miles, not to mention all of the different private practices and clinics. I’ll be able to find a decent job, I’m not worried about that. I’m fully aware that I will not get all $60,000 I am earning - I’ve had a job for a while now. Granted I don’t pay for things like health insurance, but I’ve been paying taxes for years now. I get it.
Being a loner will suck, sure, but if that’s what I have to do then I’m going to do it. At this point I don’t think I have any other options. I don’t want to start a family and be tens of thousands of dollars in debt. I just want to know if I am frugal and conscious of how I spend whatever I’m bringing home on gas, food, and professional clothes, is whatever’s left going to help me shave a decent chunk off my student loans?
One thing you should do right now if possible is find a job as a nurse tech/CNA at a local hospital. A LOT of them have some sort of education/tuition reimbursement or offer loan repayment after you graduate. I paid for my undergrad nursing school that way “back in the day.” It is definitely something to explore.
There are also underserved areas that hire RNs and offer loan repayment due to their underserved status with the government. I would most definitely look into those.
I think your debt will be doable when you graduate IF you work the night shift, take extra shifts and take weekend shifts, live with your parents and funnel it ALL to your debt. One thing I WISH I would’ve done with some of my nursing loans was to set up a weekly or even a daily auto deduct from my checking account right to my student loan account. A monthly amount can seem huge…but having it fly out of your checking account automatically every week definitely tackles the debt faster.
I know many nurses who have had a full-time job at one hospital to start with and then worked PRN at another hospital. This is doable and safe if you are only doing an extra 3-5 shifts a month.
Here is the link for the loan repayment program. These are tough to get into and you will be working in an underserved area AND…breaking the contract is a HUGE HUGE deal. You have to pay back a LOT of money if you break the contract.
But if you are young and single and don’t mind working hard and going into an area that is underserved then it is something you should consider.
I think my issue is that it’s not like a car payment. You’ll be accruing interest with every year you are in school and accruing more in loans. That’s not what car payments do.
That all adds up and gets really pricey.
Relying on having Gramps kick the bucket, doesn’t sound too secure.
You should plan on extending your years of time for being frugal.
Be aware that you’ll be limited on social participation at work and with friends because they will be able to “go out” and you can’t. If you live at home, you’ll have some privacy issues (no matter how well you get along with your parents) when you want to host work colleagues, friends, etc.
Congratulations on choosing nursing as a profession. You should not have any problem getting a job and will be paid a salary that is probably slightly higher than average for recent grads. In addition to the loan forgiveness program mentioned above, you should also consider working as a traveling nurse–probably after gaining some experience. Most agencies cover all living expenses which will give you more income to put towards your loans. It is also a great way to see other parts of the country and is perfect for those who are young and single. I have met several traveling nurses and have heard nothing but great things about their experience.
@carachel2 I had to do an extra year of school regardless, so instead of transferring into a four-year program, I’m getting my bachelor’s degree in biopsychology and then doing a 12-18 month second degree program for nursing. I’m on track with pre-reqs and my GPA.