These days, the cost of nursing school can rack up to thousands of dollars and as a result, most nursing students graduate with a burden of student loans. And because there is such a severe shortage of nurses nationwide, many employers offer recent nursing school graduates what appears to be quite an attractive incentive: "tuition reimbursement" or "loan forgiveness".
As the name implies, the heath care institution such as hospital or nursing home will offer to pay for part of, or even the whole of your student loans in exchange for you coming to work for them, and this could amount to several thousands of dollars a year. Even some state governments are offering this option.
So what could possibly be wrong with that?
The package may sound perfect, but it's really not for everybody.
The way it generally works is, the employer or state government is offering to repay part of your nursing student loan in exchange for your agreement to work for them for a specified period of time - generally at least a couple of years. Other offers will specify a certain amount, for instance $5,000 a year, for a certain length of time, say 3 years.
But even if you're agreeable to this type of arrangement, do some research first before signing on that contract. Here are some assessment questions:
Does the hospital have a high turnover rate? If yes, what could be the reason? Are you satisfied with the working conditions? Do the nurses working there seem happy? Is there a dangerously high nurse-patient ratio or poor security?
There may be a reason why they are desperate to hire nurses. And there may not be any reason they're desperate other than the fact that there is a nationwide shortage of nurses. You may want to investigate the working conditions there to find out if you're about to sign a contract that will lock you into working somewhere that will make you unhappy for the next few years.
Are you agreeing to work at a certain salary throughout the contract? Are you locking yourself in at a lower rate then necessary? Maybe you can earn a much higher pay in another facility, even enough to make up for your repaying the student loans yourself
For instance, the standard reimbursement amount in the year 2007 was around $4,000 per year. Let's say there's a facility that is offering you $3 an hour more, but does not offer tuition reimbursement. Now let's do the math. If you work 40 hours per week, by the end of the year you would have earned $6,240 more in the higher-paying facility. What this means essentially is that by signing with the hospital that offers "loan forgiveness," you could lose some $2,240. Worse, you'd have to honor that contract for at least another year.
Also, read the fine print of the contract - is there any kind of penalty for leaving before a year or two? If you left after ten months, does that mean that you do not get any tuition reimbursement at all?
If you are very familiar with the facility, and are confident that you will be happy working there for at least the length of the contract you are agreeing to, then tuition reimbursement or loan forgiveness may be right for you. But do your homework first, to make sure that it's a win-win situation for everyone!
More Information:
with the
nursing shortage in the industry today, many employers are offering tuition reimbursement to attract additional nurses and to assist current nurses pursue higher nursing degrees. Visit us to learn more about the
nursing programs and career opportunities that are available to you today!
Categories
