More than double my student loan debt?

[dana22]

I am 23 years old. I have approximately $30,000 in student loan debt including accrued interest from my first bachelor's degree. All are federal loans that are currently in in-school deferment. I was recently accepted in nursing school and am planning on entering an accelerated second bachelor's full-time nursing program in January 2015. The program cost approximately $40,000. I most likely will have to pay for it using private loans.

I also, currently have about $4,000 in credit card debt, that I am paying off. My boyfriend gives me $700 a month toward paying off my credit cards. 3 of credit cards so far now have a balance of $0. I also owe $6,000 on a car loan that was originally $20,000. I am not working. I am only attending school. My significant other is currently employed and takes care of expenses. I would like to know is accruing $40,000 more in student loan debt justifiable?

As a new graduate registered nurse in southern California (where I live), the average starting salary is probably around $35-$40 an hour. Does this starting salary with the potential to be more (my mother has been a registered nurse for 4 years started at $26/hr, now makes $51/hr at her new job), including the potential for overtime, make this amount of debt manageable? If I move to northern California I can make around $50/hr to $60/hr as a new graduate Registered Nurse, but cost of living could be higher. Would making that move help with my debt burden upon graduation?

In addition, I know it is difficult right now for new grad nurses to get jobs, but both my parents work in health care, so I already have a network for possible jobs in the future.

[disneysteve]

I have approximately $30,000 in student loan debt

currently have about $4,000 in credit card debt, that I am paying off

I also owe $6,000 on a car loan that was originally $20,000.

I would like to know is accruing $40,000 more in student loan debt justifiable?

As a new graduate registered nurse in southern California (where I live), the average starting salary is probably around $35-$40 an hour.

The general rule of thumb if not to borrow more in student loans than you anticipate earning in your first year of employment. $35/hour would be about $73,000/year so you'd be right around that mark between your current loans and borrowing another $40,000.

HOWEVER, I don't think the answer to your question is that simple. There are a number of HUGE red flags in your post.

You have 4K in credit card debt. What is that from? What did you buy that you couldn't afford? You say "I am paying off" but in reality it is your boyfriend who is paying it off. What happens if the two of you break up next week or next month. What is your plan to keep making those payments?

Also, why aren't you working? While it is very generous of your boyfriend to be providing 100% of your support, again what happens if he exits the picture?

Another red flag is that you bought a $20,000 car. I'm 50, earn a 6-figure income, and my last car was $16,000 two years ago (and it's paid for). Is your boyfriend making those payments too?

I'd say you need to seriously reevaluate your financial life. You need to start working and covering as much of your own expenses as you can and not depending on your boyfriend to pay your way. Plus you can earn at least part of the money you will need for school so that you don't end up $40,000 deeper in debt by the time you're done. By your own admission, The job market isn't great. What are you going to do if you come out with $70,000+ in debt and no job or just something part time? Is your boyfriend still going to be around and able to make those loan payments too?

[dana22]

Thank you for your reply.

The general rule of thumb if not to borrow more in student loans than you anticipate earning in your first year of employment. $35/hour would be about $73,000/year so you'd be right around that mark between your current loans and borrowing another $40,000.

Would it be possible to pay that amount of debt in 2-3 years? I would hate to have student loan payments for 10+ years.

You have 4K in credit card debt. What is that from? What did you buy that you couldn't afford? You say "I am paying off" but in reality it is your boyfriend who is paying it off. What happens if the two of you break up next week or next month. What is your plan to keep making those payments?

You brought up some very good points. The 4K credit card debt comes from various things. I got my first credit card around 18 years old before there were laws regulating the solicitation of credit cards to teenagers. I mostly used them for Christmas. I bought my boyfriend and family gifts using credit cards.

While it is very generous of your boyfriend to be providing 100% of your support, again what happens if he exits the picture?

You are absolutely right that there is no guarantee that a relationship will last. My boyfriend and I have been together 4 years. We have lived together the majority of that time. If my state recognized common-law marriage, I think technically that is what our relationship could be considered because of us living together for a number of years. I want to have a very nice wedding, so I do not want to get married so young when still trying to figure out careers and finances. Yes, my boyfriend is very generous, I am thankful to have him in my life. I have promised to help him with his educational goals once I finish nursing school.

Another red flag is that you bought a $20,000 car. I'm 50, earn a 6-figure income, and my last car was $16,000 two years ago (and it's paid for). Is your boyfriend making those payments too?

As far as the car, your comment was funny. I thought $20,000 was cheap for a car! My loan was 19,xxx with about 3% apr. I worked very hard while in college to get my credit score up to buy it. I actually wanted a closer to $30,000 car (a Dodge Charger), I’m glad I didn’t do that. The car I have now is very reliable and I have only have 16,000 miles on it after 3 years. And yes, my boyfriend is making those payments too.

Also, why aren't you working? While it is very generous of your boyfriend to be providing 100% of your support, again what happens if he exits the picture?

You need to start working and covering as much of your own expenses as you can and not depending on your boyfriend to pay your way. Plus you can earn at least part of the money you will need for school

My first degree was in Art. There are a lot of stereotypes of art majors being jobless and what not, but I actually landed a job right after college in a related field as a Graphic Designer. So, I’m pretty resourceful when it comes to getting things done. I know how to write a really good resume. I also graduated a year early from my university, so I actually would have more debt. I quit my job because my boyfriend really encouraged me to go to nursing school. My boyfriend told me to quit my job and don’t worry about expenses. I was not very happy with my current job and career aspects as a graphic designer. I want to do more with my life, and my interest in medicine was something I have had since a child.

I currently am not working because I crammed 2-3 years of science nursing prerequisites into a year and half. So, working was not really an option.


As far as working now, my program will be too intense and time consuming. It is highly recommended not to work during it. I will though be able to do a paid externship later in the program. Plus, I start in January, so I will not necessarily be able to start a job now. I do however sell things online, and have had some success with it. I have considered doing more with that, but it takes a lot of time that I just do not have right now.


I would love nothing more than to be financially independent. That is part of my desire to go to nursing school, in the first place. I feel that there are many opportunities in the field, plus I love being a care provider! I just do not want to put myself into complete financial ruin before I’m 30.

[autoxer]

I would like to know is accruing $40,000 more in student loan debt justifiable?

If you get a good nursing job and use your new income to pay down the debt at an accelerated pace, then it is easy to justify.

If you get a good nursing job and use your new income to expand your lifestyle, while you drag out your student loan payments for 20 - 30 years, then it's not worth it. Don't get too comfortable carrying debt. Having credit card debt and car payments don't have to be facts of life.

If I move to northern California I can make around $50/hr to $60/hr as a new graduate Registered Nurse, but cost of living could be higher. Would making that move help with my debt burden upon graduation?

Moving somewhere with a higher cost of living isn't likely to help your debt burden, unless you plan to continue living like a college student. You can control your costs no matter where you live, but you need to delay gratification. If you are the type of person that spends money as soon as it enters your life, then it doesn't matter how much income you earn, it will always be paycheck to paycheck.

My wife went through an accelerated RN program after receiving a bachelor's degree that couldn't provide a good job. The program was extremely intense, condensing a bachelor's degree into one year, so it wasn't really practical for her to have a job outside of school, while she was in that program.

[dana22]

Update: On Doubling my student loan debt

I have not doubled my student loan debt!

I will be graduating in December with my Bachelor of Science in Nursing from an accelerated second-baccalaureate program. I have been able to save about 30-40K worth of student loan debt due to the generosity of my ex-boyfriend paying for my last 3 semesters of school. I also, have paid off my auto loan. I do have the same amount in credit card debt hovering around 5-7 grand now.

I have about 50K in student loan debt between my first bachelor degree and the one I am currently completing. I am working hard to make myself competitive in a "saturated" job market for new grad registered nurses in Southern California. I applied for a unpaid student nurse externship program. I am currently doing my externship at large teaching hospital in Southern California in the ICU.

My issue now is paying off my debt once I am employed. My goal is to have paid off all of my student loans by 2 years, which works out to about one paycheck a month ~2,000 grand a month towards my loans to get rid of it. Does anyone have any advice for paying off student loan debt quickly? Is this feasible? I may qualify for loan forgiveness given my profession, but I could possibly end up working in an affluent area--which would take that option away, since it is based on working in underserved areas.

My last question is a "doozy". I am considering advancing my career already and have been looking at either doing nurse practitioner or medical school. I wanted to be a physician when I was younger, and from my experience in the hospital I see this role as something that appeals to me greatly.

I will be 26 when I graduate from nursing school this December. Is medical school worth the time and cost at this point of my life?

Thanks.

[Nutria]

Does anyone have any advice for paying off student loan debt quickly? Is this feasible?

There are no magic tricks to quickly paying off any debt. It's all about:
1) Earning more, and
2) spend less (aka live below your means).

That's it. Nothing else. Boring, isn't it.

My last question is a "doozy". I am considering advancing my career already and have been looking at either doing nurse practitioner or medical school. I wanted to be a physician when I was younger, and from my experience in the hospital I see this role as something that appeals to me greatly.

I will be 26 when I graduate from nursing school this December. Is medical school worth the time and cost at this point of my life?

You sound like my cousin. Couldn't decide what to do. Got a Bachelors degree in something or other, decided she didn't like that, immediately went to dental hygiene school, got that degree/certificate, decided she didn't like it either, so went to Med school. She's got brains out the wazoo (lots of scholarships), a rich father, and then a older, very wealthy boyfriend-became-husband who's ensured that they'll never have children. (Too bad, since when she hit 29, she decided that she really wanted kids after all.) Now she's been a psychiatrist for 10 years.

So, if you can get lots of scholarships and have multiple concurrent sugar daddies to pick up the tab and won't be having any children, then by all mean go to Med school after getting Nursing and Graphic Design degrees.

But if you don't, what you really need to do is figure out one degree, and stick with it, at least until all your debts are paid.

Bottom line: bouncing around from degree to degree being a "ten-yeared" student, racking up huge amounts of debt just is not a wise idea.

[pflyers85]

I have to agree with Nutria. It's one thing to have goals and have some open mindedness to various career paths rather than staying complacent but I just don't see a feasible plan in place to realistically get what you want. You flat out said that your now ex boyfriend paid for some of your schooling so you didn't have to take out additional loans. While you didn't double your debt you did significantly add to it and it sounds like you are not really any closer to entering a career with new plans to continue your education. While an unpaid externship will likely provide valuable experience you need an income. You have $50K in school debt and between $5-$7K in CC debt (whatever that means). Do you have another boyfriend or significant other lined up to pay your way like you had the last time around? I'm not saying that to be crass but I'm seeing all these plans that cost money and no real near term plans that bring in money to stave off going deeper into debt.

[sv2007]

My last question is a "doozy". I am considering advancing my career already and have been looking at either doing nurse practitioner or medical school. I wanted to be a physician when I was younger, and from my experience in the hospital I see this role as something that appeals to me greatly.

I will be 26 when I graduate from nursing school this December. Is medical school worth the time and cost at this point of my life?

Thanks.

I know one person who's finished med school but at an old age (45 yr) and she couldn't find residency. She didn't want to move (actually more like can't move as she's got school kids and working husband); it was a mid-career change for her. I don't know how common this is for old people and residencies; perhaps you can ask around. If it is common, then you may want to act on your desires sooner.

I have a very good friend who went into nursing. He's an electrical engineer by training but I don't think he ever liked his jobs (I'd say he might be one of those people who picks college majors based too much on job income). He does clinical trails monitoring, where there was a lot of traveling in the beginning, but as he becomes more senior he gets local assignments and manages other nurses from home. You may already know about this; but just in case, since I didn't know this part of nursing.

One thing that I learned in life is that job decision definition should not totally be based on its immediate pay. It should be something you like to do and it should something that can grow you. Imagine waking up 10 yeas from now, where will you be in your job? Do you still like it?

[sv2007]

Do you have any ideas on what speciality you want to go into?

One that impressed me was ER, the residency was shorter and the pay was $360k/yr many years back; first hand info from brother in law. However, I'll leave this warning; he's the only doctor I know who quit the profession completely.

The only doctors I know who seem to still like their jobs are pediatricians and an internist; but they make very little money (like $140k with 20+yrs of experience). One can't even find fulltime work at her hospital and has to substitute for other doctors far away.

[bjl584]

I'd advise you to get your finances under control before going back to school and taking on additional debt.

You need to be able to sustain yourself should you find yourself single. Find a job, pay your debts down, learn to do this on your own. Then, think about school.