In the knowledge economy that we are transitioning to, the skills you develop are going to determine how much you make. The days of paying people $30 an hour to perform monotonous tasks in a factory are over. Now, in the new economy, it will be your ideas, and skills that you possess in your mind that will determine the amount of money you can make. This will be a huge shift for nurses because with the doctor shortage coming up, nurses will be increasingly in demand. Since healthcare is so important the government offers student loan aid for nurses as a sweetener. The program is called the NURSE Corps loan repayment program.
While you should read the actual terms on the website, the general terms are that you have to be a nurse (you can be in advanced practice), got your degree from an accredited school, and you work full time at an eligible critical shortage facility. If you satisfy those requirements, and get into the program, it will pay 60% of your unpaid nursing debt over the course of two years. (There is a possible extension that allows for the program to pay 85% over three years.
The Opportunity Cost of this Particular Program for Student Loan Aid for Nurses
Let’s say Jennifer has $50,000 in nursing loan debt. She is accepted into the program, and is 27 years old. Over the course of two years, Jennifer will have $30,000 of her debt repaid without a single penny coming out of her pocket. Let’s also say Jennifer is very interested in the jewelry business, and decides to save the $30,000 she would have spent on student loans, and invests her saved money in Tiffany and Co. The business that has the iconic blue boxes, and is known by pretty much every woman in America has showered wealth on its long term owners. If Tiffany shares compound at the same rate over the next thirty years that they did over the last thirty, Jennifer would have more than $1.8 million saved by the time she turns 59. That $1.8 million dollars would be sending her almost $50,000 a year in cash dividends. All of that wealth would have been generated from one good decision that Jennifer made in her 20s.
This is why if you are going into the healthcare profession, you have to look at student loan aid for nurses. The opportunity cost of these programs are enormous. If you make a good investing decision, the opportunity cost is millions of dollars that you can save for retirement.
Cautionary Statement: While Tiffany and Co. is a great business, and I do own shares of the business, it is currently overvalued, and as a result I don’t think that it will compound at the incredible rate it did over the past thirty years. This is where it pays to be financially savvy. Some people can use leverage intelligently in real estate and get those returns, it all comes down to being knowledgeable about your talents and skills.