Types of Loans for Nursing School
No matter what you decide to major in, you will find that higher education is costly. There are various forms of aid available to student depending on need, merit and ability that can help you pay for a degree program such as nursing school. Most people find that there is further need for financial assistance and opt for loan programs.
There are a few different types of loans for nursing school that you can apply for after you have exhausted the offers for aid you do not have to repay. Loans for nursing school are available from the government and from private organizations that want to assist in the severe shortage that seems to perpetually afflict America. In some cases, these loans can be forgiven sometime after the repayment on them begins as incentive to keep people entering the field of nursing.
Organizations Offering Loans for Nursing School
There are many private organizations that offer loans for nursing school. For these types of loans you need to have a decent credit rating, or have a cosigner who does, as well as be a bit savvy about negotiating terms for the contract. The private loans for nursing school you can get are hugely variable so you should shop around to get the best deal possible.
When it comes to federal loans for nursing school, things are a bit more rigidly ruled. You can expect just about the same loans for nursing school at every college, university or nursing program. The federal loans tend to be quite standard so there is no need for shopping around, but you do need to read and understand the contract terms before you sign to be sure you are fully aware of all aspects.
Federal Loans for Nursing School
Stafford Loans – in most cases you can borrow over $20,000 per year for loans for nursing school. About half of that amount can be subsidized, which is done according to need. The part that is subsidized gathers no interest until the grace period ends; the remaining part gathers interest from the time the loan is disbursed. You have a low, fixed rate on the loan and over ten years for repayment.
Perkins Loans – if you need more than the amount offered in Stafford loan programs, you can apply for the Perkins loans for nursing school. This loan can be fully subsidized and will not gather interest at all until repayment begins. The rate on the Perkins loan is lower than that of the Stafford loan because it is considered a supplemental federal loan. This loan program has limited funding so it is generally offered on a first come, first serve basis. One great aspect of this program is that a portion of the loan can be cancelled for each year that you work as a full time nurse. After five years, full time, the loan can be cancelled in its entirety. You have to make repayment on the loan, of course, in the mean time.
Nursing Student Loans – if you still need financial aid loans for nursing school after you have the Stafford and Perkins loans, you can apply for this program. It is totally need based and subsidized. The rate is the lowest of the three and you have ten years for the repayment period.
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