Nursing School Financial Aid Guide - Part 2 - Career

Learn Financial First Aid for Nursing School: Get Nursing Scholarship, Grant and Student Loan Info

Article Source: Allnursingschools.com
Click here for Nursing School Financial Aid Guide - Part 1

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Nursing School Loans

While no one likes to take out a loan, college loans are an investment in your future. The investment you make now will pay big dividends later in higher income, better career opportunities and job satisfaction.

College loans have lower interest because the federal government regulates the maximum interest that lenders can charge on federally guaranteed student loans. This helps make the loans easier to pay-back, which encourages more people to attend school. In addition, loan repayment does not begin until six months after graduation (or when enrollment in school is less than half time).

There is also assistance for borrowers having difficulty repaying their education loans, including deferment and forbearance. These options give borrowers more interest-free time on their loans.

Stafford Loan

There are different types of loans, including a Stafford Loan, the most common federal student loan available. The Stafford Loan includes the Federal Family Education Loan (FFEL)Program and the William D. Ford Federal Direct Loan (Direct Loan) Program. Both programs are dispersed directly to students, and can be subsidized or unsubsidized, depending on the student's financial situation. Loan amounts are also need-based, and will be distributed accordingly.

Private Loan

Another type of student loan, is a private loan. These loans offer higher limits and no payments until graduation, but interest starts to accrue immediately after the loan is distributed. Private student loans can be made out to either students or parents and are a nice alternative to credit card debt.

You do need to complete federal forms, such as the FAFSA to get private loans. Eligibility often depends on you or your parents' credit score, and your chances of being approved for a private loan are better if your credit score is above 650. Interest rates and fees are based on your credit score, so it is often better to apply with a cosigner to achieve a lower rate.

PLUS Loan

There are also PLUS Loans. These loans are through FFEL and Direct Loan programs, but they are geared toward parents. In order to qualify for this type of loan, you must be a dependent student enrolled at least half time in your undergraduate education, and your parent has to apply for the loan.

This loan also requires a good credit score, and there is a yearly limit. This limit is equal to your school costs minus other financial assistance you receive. In addition to the loan limit, the first payment is due 60 days after the loan is distributed with a small fee that your parents are required to pay (which is usually less than four percent of the loan).

Grad PLUS Loan

Graduate and professional degree students are now eligible to borrow under the PLUS Loan program, under the same terms and conditions. This program is referred to as the GRAD PLUS Loan program.

For more information, visit these financial aid resources:

FAFSA application and information:
http://www.fafsa.ed.gov
Student loan information and opportunities:
http://www.govloans.gov
Stafford Loan information:
http://wwwstaffordloans.com

Nursing School Loan Forgiveness Programs

Loan forgiveness programs, also referred to as loan repayment programs, help students pay back their nursing college loans as they work in a nursing setting. These programs are an ideal type of financial aid, because you can gain valuable nursing experience in a hospital setting, get paid for your work and get reimbursed for your nursing school education.

There are many loan forgiveness programs available in response to the growing nursing shortage throughout the US. The loan forgiveness program is funded by government agencies to help areas throughout the country that are desperate for nurses. So, in exchange for nursing services, the program offers to pay back or forgive student loan debt—usually at least one year of student loans is forgiven for each year the nurse serves in the area of need. This is a great way for you to get out of financial debt while gaining valuable nursing experience.

For more information, visit these loan forgiveness resources: