How Much Debt Will You Have After Nursing School?
Many nursing students need student loans to finish their education. Learn how you can lower your initial costs and pay off loans more quickly. DISCLAIMER: The information on this website is not professional financial advice. It’s for general information only. Before making financial decisions, talk to a professional advisor. Most nursing students, about 75%, graduate with student loan debt. These loans are the main way to cover the increasing costs of tuition. Student loan debt from nursing school is also one of the biggest money challenges for working families.
To lessen the debt from nursing school, you can take steps to decrease your upfront expenses. You can also explore nursing school debt averages, loan forgiveness options, and strategies for paying off nursing school loans.
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The Cost of Nursing School
In the 2020-2021 school year, the average tuition and fees for a two-year associate program ranged from $3,900 per year for public schools to $18,000 for private nonprofit schools.
For a four-year bachelor’s program, the cost was about $9,400 per year for public schools and up to $37,600 for private nonprofit schools. Getting a master’s degree in a science field cost an average of $62,300.
Different things affect the cost of nursing school and the resulting debt, like if it’s a public or private school, how long the program is, the cost for each credit, and if you’re in-state or out-of-state.
Nursing Scholarships for International Students
Cutting Down Upfront Costs for Nursing School
Nursing school candidates can lower how much they pay upfront by checking if they qualify for nursing scholarships, grants, or programs that repay tuition from employers.
If your employer offers tuition repayment, it’s important to understand the details in the agreement. Often, nurses have to work for the employer for a certain time after getting the money.
How Much Do Nursing Students Owe in Loans?
The National Center for Education Statistics (NCES) keeps track of the average debt for people who graduate with associate and bachelor’s degrees. For those who finished a two-year program in the 2017-2018 school year, the average debt was about $23,500.
For those who finished a four-year program in the same year, the average debt was around $30,200. People who went to public schools usually had less loan debt, while those at private schools usually had more.
The American Association of Colleges of Nursing found that 69% of students in graduate programs took out federal student loans. The typical nursing student loan debt when they finished the program was between $40,000 and $54,900.
The U.S. Department of Education’s College Scorecard shows data about schools and programs, including the debt graduates have. We looked at data for the average loan debt from many nursing programs in the U.S. This info is for students who finished between 2017 and 2019.
Important: This data only counts direct and grad PLUS loans from the federal government. It doesn’t include private loans or other federal loans like parent PLUS loans.
| Number of Programs | Median Loan Debt |
|---|---|
| 97 | Up to $10,000 |
| 511 | $10,000-$20,000 |
| 89 | $20,000-$30,000 |
| 2 | Over $30,000 |
Source: College Scorecard Field of Study Data
| Number of Programs | Median Loan Debt |
|---|---|
| 14 | Up to $10,000 |
| 281 | $10,000-$20,000 |
| 530 | $20,000-$30,000 |
| 41 | $30,000-$40,000 |
| 1 | Over $40,000 |
Source: College Scorecard Field of Study Data
| Number of Programs | Median Loan Debt |
|---|---|
| 245 | Up to $50,000 |
| 111 | $50,000-$100,000 |
| 25 | $100,000-$150,000 |
| 2 | Over $150,000 |
Source: College Scorecard Field of Study Data
| Number of Programs | Median Loan Debt |
|---|---|
| 20 | Up to $50,000 |
| 61 | $50,000-$100,000 |
| 12 | $100,000-$150,000 |
| 3 | Over $150,000 |
Source: College Scorecard Field of Study Data
Nursing student debt can differ based on various factors. These numbers represent the middle values of nursing student debt. Your specific debt can vary based on factors such as your nursing program’s cost, how much you work while studying, the amount you borrow, and the financial aid you receive.
Repaying Nursing School Debt
On average, it takes around 20 years for the typical borrower to fully pay off their student loan debt. For certain professional graduate students, like nurses, it might take approximately 45 years to clear their undergraduate and graduate student loans.
Several factors influence how long it takes to repay nursing student loans. If students can contribute more to the main loan amount each month, they can significantly reduce the time needed to completely repay the loan.
Nurses’ ability to pay back their nursing student loans is linked to their living costs, income, the loan’s interest rate, the established monthly payment, and eligibility for loan forgiveness programs. If nurses find a lower interest rate, they can also decrease the repayment time by refinancing the loan.
Nursing Graduates’ Earnings
Nursing provides a stable profession with employment possibilities in hospitals, clinics, businesses, schools, and community centers. Salary varies depending on where nurses work, the geographic area, and their experience.
Certified nurses who specialize in caring for specific populations or have valuable experiences that enhance patient care can negotiate for higher salaries. The tables below show the typical hourly pay nurses might expect based on their practice and years of experience.
Monthly Payments for Student Loans
The College Scorecard estimates the monthly payments needed to clear direct student loan debt over a 10-year span. This calculation is based on a fixed repayment plan and current interest rates. Here’s an overview of what different degree-holders might need to pay monthly:
– Associate degree-holders: Between $100 to $200 per month
– Bachelor’s degree-holders: Between $200 to $300 per month
– Master’s degree-holders: Between $200 to $500 per month
– Doctoral degree-holders: Between $500 to $1,000 per month
You can make use of the federal student aid loan simulator provided by the U.S. Department of Education (ED) to calculate your own estimated monthly payments.
| Number of Programs | Estimated Payments |
|---|---|
| 97 | Up to $100 |
| 511 | $101-200 |
| 89 | $201-$300 |
| 2 | More than $300 |
Source: College Scorecard Field of Study Data
| Number of Programs | Estimated Payments |
|---|---|
| 14 | Up to $100 |
| 282 | $101-200 |
| 529 | $201-$300 |
| 41 | $301-$400 |
| 1 | More than $400 |
Source: College Scorecard Field of Study Data
| Number of Programs | Estimated Payments |
|---|---|
| 213 | Up to $500 |
| 139 | $501-$1,000 |
| 24 | $1,001-$1,500 |
| 7 | $1,501-$2,000 |
Source: College Scorecard Field of Study Data
| Number of Programs | Estimated Payments |
|---|---|
| 15 | Up to $500 |
| 59 | $501-$1,000 |
| 17 | $1,001-$1,500 |
| 5 | Over $1,500 |
Source: College Scorecard Field of Study Data
Student Loan Forgiveness for Nurses
If nurses qualify for student loan forgiveness, they might not have to fully repay their nursing student loans. However, these forgiveness programs often have conditions attached to them.
Forgiveness programs provide an opportunity for nursing students to erase their nursing student loan debt by serving underserved communities or fulfilling other unmet healthcare needs.
It’s important for nursing students to carefully review the requirements before agreeing to a nursing student loan forgiveness contract to make sure they can fulfill the obligations.
Nurses interested in this can explore our detailed guide to nursing student loan forgiveness options.
Tips for Repaying Student Loans
Regardless of the economic situation, sticking to a nursing student loan repayment plan can be challenging. Nevertheless, there are several reasons why nurses should pay off their nursing student loans as soon as possible. While some compare student loans to mortgages, there are distinct financial differences.
Unlike a mortgage, your student loan doesn’t rely on an appreciating asset. Mortgages often have lower interest rates, and unlike student loans, they can’t be discharged through bankruptcy.
When you clear your student loans, it enhances your monthly cash flow and allows you to invest more in your future or save for retirement. Reducing debt leads to financial freedom and reduces the overall interest paid during the loan’s lifetime.
Consider these suggestions to stay on course for repaying your loan, possibly even paying it off ahead of schedule:
1. Automatic Debit: Many loans allow automatic deductions from your account. This ensures timely payments and can even lead to reduced interest rates from some lenders.
2. Pay More than Minimum: If feasible, add more than the minimum to your monthly payment. Even an extra $50 per month can significantly cut down long-term interest costs.
3. Utilize Windfalls: Allocate windfall money like tax refunds or raises toward your nursing student loan repayment. Aim for at least 50% of these funds to go toward your debt.
4. Address Capitalized Interest: Unsubsidized loans accumulate interest from the moment you start paying. You can defer this interest while in school, but after graduation, it’s added to your loan’s principal, increasing interest and monthly payments. Consider paying this interest while in school or before the grace period ends.
5. Make Extra Payments: There’s usually no penalty for early repayment on nursing student loans, but lenders might apply extra payments to the following month. Instruct your lender to apply overpayments to the current balance.
FAQs About Nursing School Costs
– How much is nursing school tuition?
Tuition varies based on factors like program type (public/private) and residency status. Public four-year programs average $9,400 annually, while private nonprofit programs can reach $37,600 per year.
– Is there funding for nursing education?
Nursing candidates can find scholarships and grants that don’t require repayment after graduation. Look within your nursing program, local businesses, national associations, and interest groups.
– How long does it take to repay nursing student loans?
Federal repayment plans span 10 years. Factors like further education and extra payments can influence repayment duration. Advancing education may defer payments, while extra payments can expedite repayment.
– What’s the quickest way to clear student loans after nursing school?
Opt for automatic debits to ensure timely payments. Pay extra toward the principal each month and allocate windfalls to the debt to expedite repayment.
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Sources
- AACN releases 2017 graduate nursing student debt report. (2017). https://www.aacnnursing.org/Policy-Advocacy/View/ArticleId/24952/AACN-Releases-2017-Graduate-Nursing-Student-Debt-Report
- College scorecard. (2022). https://collegescorecard.ed.gov/data/
- Fast facts. (n.d.). https://nces.ed.gov/fastfacts/display.asp?id=900
- Furillo J. (n.d.). Student debt hurts nursing students, too. https://www.nysna.org/student-debt-hurts-nursing-students-too#.Y5eWnezMKDV
- Hanson M. (2021). Average cost of a master’s degree. https://educationdata.org/average-cost-of-a-masters-degree
- Tuition costs of colleges and universities. (n.d.). https://nces.ed.gov/fastfacts/display.asp?id=76