Student loans

k318 · March 2014

Dh just got accepted into grad school! Yay! However, this program is very intense and he will be unable to work, so we will be left to survive on my income alone.

Has anyone taken out student loans to cover living expenses? Any tips on how much to take out and what types of loans are best? He probably won't qualify for federal loans based on my income. Tuition is not so much of an issue but we are gonna need some help with the monthly bills while he is out of work..

Or any other tips on pulling in some extra money? we already keep our expenses pretty low by shopping sales, store brands, etc.

Valie18 · March 2014

Yay! Congrats to your DH!

It's likely a little different for me because I'm in Canada.

As a student and with DH making good but not great pay, I am able to get zero interest loans through the government-ish. We use these to pay back DHs student debt since his has interest because he is graduated. If there are such programs available to your DH, he needs to check them out. There should be an awards/financial aid office at his school to point him in the right direction.

Your DH should check out what scholarships and awards are available to him. Bursaries too (I am eligable for one that will help pay for LOs daycare.)

As for earning extra money, the highest paid "student" jobs at my school are tutoring (not my thing) and TAing (love it) and they actually pay really well as far as student jobs go.

elittler · March 2014

My husband and I had to love off of student loans while in school. I was in undergrad and he was in law school. We made a budget for all our expenses and took out enough to cover those, with a little extra for groceries and stuff like that. Will you be working? If you'll be scraping by it might be a good idea to look into WIC and other programs in case you have to use formula to help with those costs. My daughter was on a hypoallergenic formula and we had her while in school - we wouldn't have been able to make it if we didn't have help with that.

Good luck though, and congrats to y'all!

dragonfly711 · March 2014

Good luck. I had to for one semester when I was student teaching. Now I have over $120,000 in debit and should be paying over $1,000 per month. Can't afford it. Have had to make arrangements to pay a small amount or to defer.

Wish I knew before would never have gone back to school I don't think.

I will never be able to pay them back.

Just wanted to give you a heads up.

I took out federal and private school loans.

MNOpea · March 2014

I took student loans out to help me live off in undergrad (I also worked part time but my parents were unable to help me financially) and it is one of my biggest regrets. I too would try to make it work some other way.

wtfisup · March 2014

ugabamafans said:

DH and I did student loans for both of us. It was a huge burden and mistake for us. I would figure out how to make extra money and cut expenses to cover the living expenses. Can he not wait tables or deliver pizzas on the weekends to make some extra cash? I would research grants and scholarships available to help. Really work it so you don't come out with a bunch of debt. You never know what job you will be offered and what you will make with that degree, and you don't want that added burden.

This. Do anything possible to avoid or minimize your loans. They're not as subsidized as in the past, nor are the interest rates as low.

I understand that grad school will be rigorous, but I'd say find at least a part-time job. My husband and I both had assistantships in graduate school PLUS second jobs on the side. It was tough, but we made it. Even as an undergrad, I only took out loans for tuition + books. Living expenses -- never.

I assume he applied for any fellowships or assistantships available from the school? Did they mention that in the acceptance letter?

H and I both have five college degrees between the two of us and were given the advice to "go where they pay you, don't pay for grad school." We did just that and our loans are minimal, but still hundreds a month. (Mine: $90, his: $200) I know that's not an option for everyone, but I wouldn't make any decisions based on the assumption that grad degree = high paying job. Or job. (This, of course, varies tremendously by field.) Both of us make a comparable salary with our grad degrees to what we'd make with a BA only; these degrees just get us into the fields/jobs we like.

k2k2tog · March 2014

Congrats to your husband! I'll be starting grad school in September myself, so DH and I have been thinking a lot about budgeting and where the money for it is going to come from. I have no idea what the American context is, so I'm not sure I can comment much on student loans. Like @Valie18, I'm in Canada, so eligible for interest free government student loans, which are based on financial need. With a dependent and only one income, I would definitely qualify. Definitely look into this kind of thing, if it exists in the States.

That said, as a back-up, we have also applied to increase the limit on our home equity line of credit as much as possible. It has a low interest rate, so, while we hope not to have to use it, it would provide us with enough of a safety net for us to feel comfortable. If you have any equity you can borrow against, you definitely want to consider this now while you still have two incomes.

The only other advice I have, since I'm not familiar with the American context, is budget budget budget. Are there any of those monthly bills you can get rid of? Things you can do without? Things like, cancel your cable and get Netflix instead, or get rid of the data plan on your smartphone. Making little sacrifices like that might suck in the short term, but will likely be worth it in the long term, in order to make sure your income goes as far as possible.

Good luck!

k318 · March 2014

I was able to go to grad school for free but I was very lucky. My masters also doesn't do much for me financially, but I was able to go to school for free so I did.

His program does not allow you to work. He is going to try to work per diem if possible/allowed for some spending money. This field is high paying and very in demand (healthcare, he is coming out with a new license and certification as well as a masters). Tuition is not the issue. The cost of living in our area has gone up tremendously in the last couple of years but moving is not an option either (higher cost of living, but family is here and child care is free).

We are looking into ways to reduce our monthly bills but certain things (mortgage, utilities) are unable to be reduced.

mrscbrad · March 2014

My master's is in the healthcare field as well and I can tell you that with licenses and certifications there are usually opportunities for weekend or night internships or externships as well. I would look into possible research jobs also. When I was in grad school I worked in research that not only gave me a flexible schedule and good pay but also paid for most of my graduate degree and served as a basis for my thesis.

coffee89 · March 2014

If he can find a way to get tuition covered, via scholarships or grants that puts a lot more money in your pocket at the end of the day.

Is it possible to refinance a car or home loan? Is there any family you can ask for help from? We have taken a few loans out from MIL and while not ideal, the pay back time, no interest, and not having to wonder how to pay a few bills really helped when we had a medical situation come up that took me out of work.

Are you on a phone plan that can be reduced? I pay $35 a month for my phone and that includes all data whereas a contract phone from version etc would be over $100. Is there a way to reduce costs of cable, internet, subscriptions etc. Is it possible that you can get away with one car?

Is it possible that you could take on a second job? I know it isn't ideal but even working a night job and bringing home an extra $300 a week will make it easier to make ends meet. Or have your husband look into things like Mturk via amazon, it's dull work but I've found tasks on there that will pay $5 for 5 minutes of taking a survey.

Is WIC, childcare assistance, food stamps or housing allowances an option for your family once he isn't working?

The number one thing before deciding a loan is the way to go, is to write out everything you spend money on, down to the $2 coffee at the gas station you might get 3 times a week and see what you can cut. Budgeting is hard, and for some people (me and DH especially) it causes a lot of stress and you need a lot of self will to talk yourself into cooking pasta and veggies for the third time instead of just running to get burgers

TunieBee · March 2014

Will he be getting a Nurse Practitioner degree or what is the graduate degree?

k318 · March 2014

@MaddieRosie‌ he will be getting his crna degree.

LovetoLive614 · March 2014

Coming from someone who did it my advice is to only do it as a last resort and take out as little as possible. They add up very quick, interest rates are not that great and will be a burden when it comes time to repay.

CRNA is a great career and he will make good money but don't make the mistake of once he gets a job getting used to the extra income - live small for a few more years and pay off the student loan debt. Many CRNAs live frugal for so long that when they get their first big paycheck they go crazy but if you don't pay off loans early over time you will end up paying around $200k with interest.

Unknown · March 2014

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LKHoffa · March 2014

It sounds like you will have to take some loans out, and that's okay.

When I went to law school, I went directly from undergrad. I honestly didn't know 1/4 then of what I know about money and interest rates, and my school had no desire to tell me. They just kept saying I was "making an investment" in myself.

I wish I would have gone to financial aid at the beginning- NOT the end. So that's my advice! Meet with financial aid now. Explain your family situation and ask about every, single option. (Some might not get suggested because they aren't popular, but they may work for you!) Maybe even meet with a financial planner. You never know where a good solution will come from!

And yeah- cut out the "extra's" and budget! And maybe let your friends and family know what you are going through, so you can let people know from the get-go that you don't have extra money to spend on gifts, fancy dinners, bridesmaid dresses, etc. If you tell them up front and in a relatable way, people will be more understanding of those things!

TunieBee · March 2014

CRNA is an amazing career and the cost of the degree will absolutely be worth the benefit. I wouldn't worry about the loans if I were you. He will triple or quadruple his salary from his RN salary. When I was in my NP program, I took out loans for tuition, but not for living expenses. At the same time, I don't make as much as an NP as a CRNA. The loans were still absolutely worth it in this field! I wouldn't count on him being able to work much during his program. My friends who have completed the CRNA degree said it was incredibly rigorous. Congrats to him! It's a huge accomplishment to even be accepted. Also, I would try to just get government loans (including Sallie Mae) vs. private loans.

hollygb22 · March 2014

I put myself through undergrad and lawschool. My lawschool loans are like a second mortgage to us now. My advice..work if he can, even if it's something small and part time to help cover living expenses. Try as best as you can to only take out federal loans. I had to take out private to help ocver expensives and they are all variable rate loans. Everytime the interest rate changes, the whole life of the loan is recalculated. It used to kill me when that payment would balloon up and down.

momo21 · March 2014

I went to grad school and made the mistake of taking out a lot of loans. I was moving to a new state with DH and DS, and DH didn't have a job yet. Because it had been a while since undergrad (when my student loans were at 3%), I wasn't too concerned about the loans. And student loans are good debt, right?

Well, student loan interest is now at upwards of 7%, and this makes a huge difference. So anyway, we took out a lot the first year to cover tuition (even though I received a partial scholarship, tuition was still very high) and living expenses. I really regret it now, especially as DH found a job quickly. I had realized my mistake by second year, and took out significantly less. But now I owe more than $100,000 and it's a brutal monthly payment!

You're in a good position that you already have a job and you know what your living expenses will be (since you're not moving to a different area). And it sounds like his income after school will be significantly higher than it is now, which is great. Although I have a degree that most people equate with a high-paying job (MBA), I actually got it to go into a lower-paying field, which is obviously not ideal.

My advice is to definitely look into the government loans (I don't think your income will be a deterrent) and to try to pay off some of the interest of the loans while he's in school, even though he won't be required to pay anything yet. Similarly, try to pay off the interest before it capitalizes into the principal (this happens six months after he graduates). And, like a PP said, even after he graduates, continue to live frugally for a while so you can pay a good chunk of that debt down in the first couple years.

Good luck!

texasmama2014 · March 2014

Your husband should file his FAFSA on FAFSA.gov as everyone (who hasn't taken out too much already) qualifies for Subsidized and Unsubsidized Federal Loans. You would want to take the Subsidized first, because they will not accrue interest while your husband is in Grad School.

I have a substantial amount of loans from both Undergrad and Grad. I would use great caution and try to cut corners before borrowing money. He may be able to get a Graduate Assistantship, which would usually be through his program, and he would only be working up to 20 hours a week or so. This may offer a stipend plus tuition waiver, or just a fairly high hourly wage. Some grad assistantships can offer benefits as well. I would definitely look into other options before taking out loans. Definitely apply for scholarships too.

Mom&nurse · March 2014

I took out living expense money and was such a bad idea. I have soo much I can't even pay it.

whoberry · March 2014

I took out loans for tuition and living expenses for three years of law school, plus a bar loan and a loan to study abroad. I graduated with about $140K in debt.

I took out a combo of federal and private loans. But most of the expenses for each year were private loans. My last year of law school they started offering the Gradplus loan which they were really selling us as this great new loan. Turns out it totally sucks because I have a fixed interest rate of 8.5%, whereas my private loan interest rates are variable and currently around 3%. Of course no one knew the economy was going to tank when I took out the gradplus loan. The fixed interest rate just sounded like a good idea at the time.

For me borrowing living expenses was pretty much my only option and I don't regret it. I am one of the lucky ones who got a job before the economy tanked. I started as a lawyer making more than three times what I made in my first short lived career. I think as long as the income potential for your DH is good, student loans are an ok option.

ncbelle · March 2014

I don't think student loans are evil. I would never take out private loans if I could help it but I have 6 figures of stafford loan debt from my PhD that I don't regret. Yes, it sucks having to pay it back now but I wouldn't have gotten through without it. It sounds like getting a job with a nice salary boost will be no issue after he is out. And if you do stafford loans (whether subsidized or unsubsidized) you can do an income based repayment plan - certainly drags out what you pay in interest but again it's a trade off if it's the only way to get through school.

Because I'm at a public university, I will be able to discharge the remainder of my debt after 10 years. Not sure if working for a public institution would be an option for your DH but that's another aspect to consider.

temursgirl · March 2014

I have an MBA, for which I took out loans for tuition plus a small amount for living. As PPs have mentioned, typically you don't have a lot of work options during a professional degree. Generally, you can't TA or anything on campus, plus you're often expected on campus full time.

On the one hand, I couldn't have gotten the degree without loans. On the other hand, my monthly payments were $1000 per month. We paid them off, but really that is due to DH's income, not mine. (I now stay at home, but when I worked basically my income was largely consumed by the debt.

I didn't qualify for a FAFSA the first year, but I did the second (because of my income going down during the first year), so remember to look into that after your H starts. I guess my advice is that you want to avoid debt as much as possible, but that may not be possible. As PP said, do talk to financial aid first, and a financial planner is not a bad idea. Whenever possible, you want to start with the "best" debt. One of my classmates used credit cards a lot and that's way harder to pay off than student loans, and of course those vary too.

k318 · March 2014

Thanks for the replies and suggestions. H and I are lucky enough never having had to take out student loans before so this is new territory!

We will have to take out some but will try to cut back and save as much as we can so the amount taken for living expenses in minimal. Hopefully he qualifies for federal loans.
Him getting into this program at this time was unexpected but a blessing. It's going to be tough with two little ones but totally worth it for our family's future.

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