‘Long story short, money out is greater than money in right now’: With tuition looming, how can I find a solution to fund my final semester without falling into debt?

Hey Money Minder,

So, here’s the deal: I’m graduating from a super quick BSN nursing program in December. I only got half of the federal aid for tuition because of my previous degree, so I’ve been hustling to cover the rest. Between working my butt off full-time, selling some jewelry, a bit of help from my dad, and living frugally, I’ve managed to scrape together the cash for each semester so far. But now, unexpected expenses have left me broke and with credit card debt from my wild twenties. To top it off, I’m short about 6k for my final semester.

Here’s where I need your expertise: I’ve been stashing away money in my 401k at work for three years now. It’s looking pretty good. Could I dip into that for the 6k I need? Or should I bite the bullet and go for a sketchy loan, hoping to consolidate it later? I’m worried I’ll be stuck with a loan I can’t pay off right away. New grad nurse salaries in my area are around 65k, by the way.

Thanks for your help, Money Minder! I appreciate it!

Response from THE MONEY MINDER:

Hello There,

Congratulations on making it to the final semester of your accelerated BSN nursing program! It’s clear you have been working hard to fund your education and avoid predatory loans. However, facing unexpected expenses and credit card debt can be overwhelming. In regards to withdrawing from your 401k, it is important to weigh the pros and cons. Withdrawing early may come with penalties and tax implications, so it’s crucial to fully understand these before making a decision.

Considering your starting wages as a new grad nurse and the potential growth of your income, taking out a predatory loan might not be the best solution. While consolidating down the road could be an option, it’s important to consider the high-interest rates and the impact on your financial stability.

Instead, I recommend exploring other options such as applying for scholarships, grants, or even speaking with your school’s financial aid office to see if there are any resources available to help cover the remaining tuition. Additionally, creating a strict budget and seeking additional part-time work opportunities can help you generate the needed funds without compromising your financial stability in the long run.

Remember, this is a temporary financial setback, and with careful planning and determination, you will be able to overcome it. All the best from THE MONEY MINDER.