3 Private Student Loans for Nursing Students

There are a number of private sources for student loans for nursing students that are more flexible than government loans or grants. Depending on when you are going to nursing school, as a young person or as an adult, you may be better suited for one option over the other. Younger students typically have shorter credit histories and lower asset bases, meaning they will have a harder time getting a loan. If you are returning to school in your adult life, you may have an easier time gaining financing.

#1 Secured Personal Loans

One option for a person with an asset base is to secure a personal loan with a hard asset. For example, home equity loans may be used to pay the cost of returning to school. A home equity loan is given based on the amount of equity you have paid off on your mortgage. If you own at least half of your home, you will likely be able to get a loan large enough to pay for your return to school. If you do not own a home, consider the many other assets that may be used to secure a loan. Stock certificates, savings accounts, cars and businesses may all be placed as collateral on a personal or student loan. Using collateral reduces your interest rate and makes a loan easier to source. The lender is assuming less risk in the loan contract, meaning you may even get better terms.

#2 Unsecured Student Loans

If you do not have an asset base sufficient to provide you with financing, there are options for unsecured loans. These loans will have higher interest rates, and the loan terms may not be as favorable. On the other hand, most lenders will only require a good credit score and a reasonable income in order to source this loan. Many nursing students will work while attending class. There are options to serve as a nurse assistant, teaching assistant or hospital administrator while you are awaiting your full certification. Having even a moderate income while you attend school allows you to keep up with payments on the majority of loans. Some loans may be interest-only during this time period.

#3 Revolving Credit Lines

Working while attending school will also open up the option of a revolving credit line. If you can achieve a credit limit that is high enough to pay for your tuition per semester, then you can make those charges and pay them off during the course of the semester. Revolving credit lines offer a very flexible form of financing. Any extra expenses you have, such as supplies or even groceries, can be purchased with the same loan you use to pay the cost of tuition. Of course, these lines typically have higher interest rates, making financing expensive if you cannot keep up with payments. Students using revolving credit lines may have to spread out their education over a longer period of time. Carrying a lower class load each semester will allow you to pay for school as you go.

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