I am a registered nurse for 18 years. Student.gov showed I owe $35000. But I can’t pay $700 a month for this. They said in not a candidate for forgiveness, I am in so much stress with this.
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Thank you for being a nurse, and sorry you’re feeling stressed about your financial situation. You guys have a lot to deal with when it comes to patient care as it is. There’s a nurse in my household as well.
It sounds like you have a Federal loan. Did you take out the loans to become a nurse 18 years ago? What are your interest rates on the loan? What type of repayment plan are you on?
If you took out loans to become a nurse, that means you aren’t on the standard repayment plan, which typically has a 10-year payback period. If you are on an income-driven repayment (IDR) plan, have you recently seen your monthly payment increase? If your income has gone up or you have become married and your total income has gone up, then your repayment also goes up. As these plan payments are usually 10 – 20% of your income.
Not knowing your exact situation, you have a few options that may work.
a. Depending on interest rates and accounting for the pros and cons of this move, you could switch to a private loan if interest rates are lower to reduce payments.
b. You could consider switching your repayment plan. You have several options. Here are two of them you could explore. One option is to consolidate your federal loans and extend the repayment period, which could, in turn, reduce payments. Two, use a tiered repayment plan that starts with lower payments then gets higher as it goes on.
c. Employers now get tax write-offs for student loan repayment assistance. Are you working for a large hospital system? More common in larger employers, you will find assistance in repaying your loans. They may come with stipulations requiring employees to stay with the employer for a set period.
d. Lifestyle creep and getting aggressive with paying loans down. The root of the issue may be more about your financial behavior.
Lifestyle creep is when you are making more money than you did 18 years ago but still feeling strapped for cash. It’s time to get busy and serious about your financial future. Analyze your budget and determine the sacrifices you can make now to potentially improve your financial health.
Good luck to you! There are many great advisors on Wealthtender if you need additional help.
Warm Regards,
Nathan Mueller, MBA, CFP®
BlackBird Finance – Helping Generation XY, outdoor enthusiasts, and families make smart financial decisions so they can spend more time living life.
Disclaimer: The opinions and comments listed are believed to be accurate as of today’s current laws. This is not advice, but is for educational purposes. You should reach out to a licensed professional for guidance on your exact situation.