Interest Rates are at Record Lows. What Does That Mean for Nurses?
Article shared from Nurse.org
Now is a stressful time to be a nurse, and the last thing you want to worry about is your finances. But with interest rates at an all-time low, you could be missing out on big savings.
You pay interest on all that you’re borrowing: student loans, auto loans, mortgages … you name it. Interest rates are at an all-time low now, but they probably weren’t when you took out your student loans. It’s likely that you’re paying too much for your debt.
What can you do about it? Refinance and take advantage of current rates — potentially saving yourself hundreds of dollars a month. In other words, get a new loan at a lower interest rate that automatically pays off your existing higher-interest rate one. So you owe the same but pay less each month.
Are Rates Really at Record Lows?
Yes! Interest rates are currently at record lows. Check out this chart published by the Federal Reserve Bank of St. Louis. It shows interest rates going back 65 years.
Can you see where they were in April 2020, the last month shown? At 0.5%, they’re so close to 0.0% that you’ll need great eyesight to make out the difference.
This chart is showing the “effective federal funds rate,” which is the rate banks charge each other. And you’re not personally going to be offered 0.5%, even if you’re the most creditworthy nurse in America.
But many consumer loan rates are tied to the federal funds rate. And, when it’s super low, it lowers the rates on many types of loans including student loans.
What’s Been Happening to Student Loan Rates
There was a time when lenders were regularly charging 12% or more on student loans. If your loans date back to that time, then you stand to save a lot by refinancing.
In our research, we requested student loan refinance quotes. The lowest rate we were offered was 1.99%.** That’s an amazing rate, but keep in mind, rates vary according to your state, credit, income, and other factors.
How Much Could You Save?
Statistics only get you so far. So let’s look at some real-world examples of potential savings. We’re assuming that you’ll refinance to a 10-year, variable-rate, private loan with the same balance as your existing one:
Scenario 1
- You owe $50,000
- Your current interest rate is 12%
- You refinance to a 2% loan with a $50,000 balance
- You save $460 every month — or $30,848 over the life of the loan
Scenario 2
- You owe $37,000 (average debt for a newly qualified RN)
- Your current interest rate is 5.8% (average rate for all student loans)
- You refinance to a 3% loan with a $37,000 balance
- You save over $50 every month — or $6,050 over the life of the loan
Scenario 3
- You owe $100,000
- Your current interest rate is 8%
- You refinance to a 4% loan with a $100,000 balance
- You save over $200 every month — or close to $24,000 over the life of the loan
Scenario 4
- You owe $20,000
- Your current interest rate is 9%
- You refinance to a 4% loan with a $20,000 balance
- You save over $50 every month — or more than $6,000 over the life of the loan
You’ll notice that even a relatively small savings of $50 a month adds up over the lifetime of your loan. It adds up to a total savings of $6,000 over 10 years.
What would you do with an extra $6,000?
But Not Everyone Should Refinance Their Student Loan
Nurses should keep in mind that signing up for any big new loan needs to be taken seriously. You must be sure that you understand what you’re getting into and that you’re comfortable that you’ve found a good lender.
You also need to be aware that refinancing a federal student loan to a private one has some implications that are important to some nurses. For example, private loans will not qualify for loan forgiveness programs or income-driven repayment plans.
But, for many, the lower costs of private student loans outweigh those federal benefits. If you’re not in such a program and are secure in your ability to keep up payments, then the savings may be attractive.
Regardless of how you do it, now is a great time to take advantage of historically low interest rates. Saving money will certainly relieve some stress and a little less stress goes a long way these days!
Nurses Influence the Health and Wellbeing of Patients Every Day
As individuals, nurses directly influence the health and wellbeing of patients every day. Through frequent contact, nurses are best placed to encourage lifestyle changes in…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Changes in Nursing
Changes in nursing involve a major shift in higher education standards, requiring more nurses to hold a 4-year bachelor of science in nursing (BSN). The…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Trades make a comeback with Gen Z Workers
America’s skilled trades — from nursing and plumbing to welding to construction — need more workers as boomers retire. Gen Z-ers are stepping up to fill…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Congratulations, Sumner College Graduates: Embracing New Beginnings
Congratulations to the new Sumner College nursing graduates. As the tassels are flipped and mortarboards soar into the sky, a chapter closes, and another begins.…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
April BSN Info Sessions
Have you considered being a nurse and working in the healthcare industry? Attend an information meeting with Sumner College to learn more about the BSN…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
The State of Wellness: Everything You Need to Know About the Oregon State Board of Nursing
You have likely heard about the Oregon State Board of Nursing (OSBN), but how does the organization interact with and support Oregon nurses? Join us…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
OCN Explores Nursing Wages in New Research
Article & Photo Shared from Oregon Center for Nursing How much do Oregon nurses really make? The well-being of Oregon’s nursing workforce is a guiding initiative for…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
New Classes Start Today!
March classes start today! Welcome to our new BSN, PN and RN-BSN students.…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Meet Alex – Sumner College Graduate
Alex, congratulations on your graduation! As you’ve embarked on your nursing journey, remember: ‘Nursing is not just a profession, it’s a calling to serve, heal,…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Meet Alexandra – Sumner College RN to BSN Graduate
Alexandra, congratulations on your graduation! As you’ve embarked on your nursing journey, remember: ‘Nursing is not just a profession, it’s a calling to serve, heal,…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Meet Renee – Sumner College Graduate
Renee, congratulations on your graduation! As you’ve embarked on your nursing journey, remember: ‘Nursing is not just a profession, it’s a calling to serve, heal,…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Meet Serena – Sumner College Graduate
Serena congratulations on your graduation! As you’ve embarked on your nursing journey, remember: ‘Nursing is not just a profession, it’s a calling to serve, heal,…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Meet Amanda – Sumner College Graduate
Amanda, congratulations on your graduation! As you’ve embarked on your nursing journey, remember: ‘Nursing is not just a profession, it’s a calling to serve, heal,…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Meet Natalie – Sumner College Graduate
Natalie, congratulations on your graduation! As you’ve embarked on your nursing journey, remember: ‘Nursing is not just a profession, it’s a calling to serve, heal,…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Now Hiring
Are you a healthcare educator? Sumner College is looking for our next Nursing Educator to join our team. This is a part time position. Read…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Meet Erin – Sumner College Graduate
Erin, congratulations on your graduation! As you’ve embarked on your nursing journey, remember: ‘Nursing is not just a profession, it’s a calling to serve, heal,…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Exploring the Vital Role of Nurses in Heart Health
Article Shared from DiversityNursing.com February is American Heart Month. It's important to promote cardiovascular health and explore the many ways Nurses are engaged in these…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Meet Anne Marie – Sumner College Graduate
Anne Marie, congratulations on your graduation! As you've embarked on your nursing journey, remember: 'Nursing is not just a profession, it's a calling to serve,…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Nursing Ranked Most Trusted Profession for 22nd Year
Article Shared from DiversityNursing.com In Gallup's 2023 Honesty and Ethics poll, Americans' evaluations of almost all 23 professions have experienced a decline compared to previous years.…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Helpful Apps Every Nurse Should Have
Article shared from DiversityNursing.com Mobile apps have transformed how Nurses provide care to their patients. Smartphones allow Nurses easy access to applications designed to assist…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
DiversityNursing.com – Helpful Resources
Helpful Resources DiversityNursing.com is a Career Job Board, Community and Information Resource for all Nurses regardless of age, race, gender identity, religion, education, national origin,…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
How to Prepare for College – Oregon Goes to School
Article shared from Oregon Goes to College It’s a plan! No matter what grade you’re in, you can get ready for your future. Getting ready…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Sumner College Clinical Partners
Sumner College clinical partnerships play a crucial role in advancing medical education and training. By offering opportunities for hands-on experience and mentorship, these collaborations help…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Commencement Ceremony
Save the date - April 6, 2024 for Sumner College's Commencement Ceremony. Celebrating cohorts: PN54, PN55, ADN23, RN-BSN10 and RN-BSN11 Congratulations to you all!! Tickets…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Healthcare Hero
Are you aspiring to be a healthcare hero? A common question from our nursing students at Sumner College is about the role of ER nurses…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Dynamic – Interactive – Rich with Real-world Relevance
RNs are you ready to take your nursing career to the next level with a BSN? Guess what - at Sumner College, you can achieve…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
ER Nursing
Have you been thinking, “How can I start my nursing career in an ER?" Begin by obtaining a solid understanding of nursing through an approved…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
LPN
At Sumner College, we understand the importance of every role in the nursing field, including the dedicated work of Licensed Practical Nurses (LPNs). LPNs are…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Flexible – Balanced – Online RN to BSN
Wondering what it's like to pursue a nursing degree online? At Sumner College, our RN to BSN program fits the busy lives of working nurses…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn
Nursing, beyond direct patient care
Thinking about a career in nursing but interested in roles beyond direct patient care? At Sumner College, we recognize that nursing offers diverse career paths,…
Share at FacebookShare at TwitterShare at PinterestShare at LinkedIn