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So I'm sure this is something all of us applying to grad school are pretty concerned about! I have been researching this and have a whole bunch of questions, so was hoping current OT students or current OTs might be able to offer a bit of insight, or creative solutions to making grad school affordable. I know in the end it'll all be worth it, even with debt, but I want to be smart going into this!
First of all, Loans:
It definitely sounds like 99% of aid available is in the form of loans, the federal ones being Stafford, Perkins and Graduate Plus. From what I understand, Stafford pays for up to 20,000, and Graduate Plus can cover the rest of expenses including cost of living expenses. So what is the Perkins loan and how does it differ? I haven't really researched private loans, but from what I can tell the benefits are minimal compared with federal, especially considering some loan forgiveness plans in place.
Public Service Loan Forgiveness:
I know there is a Public Service Loan Forgiveness Plan that after 120 monthly payments (essentially 10 years) working at least 30 hrs a week as an OT in certain settings, whatever is left in federal loans, including interest, is forgiven. It seems I would probably have to take approx. $100,000 of loans out for grad school, so this sounds like it would make a huge difference for me. How permanent is this and what are the odds of it disappearing by the time I would need it? Also, it sounds like it really covers a majority of OT work - is that correct, or would it greatly limit the amount of employers/settings I could pursue?
The student aid website also says the Public Servie Loan Forgiveness Plan can be combined with the Income-Based Repayment plan, for lower cost monthly payments (whatever is left in 10 years would still be completely forgiven.) To qualify for the IBR, you have to have a partial economic hardship at the time of application, even though if after you have IBR and no longer have economic hardship, you can stay on it. It doesn't make a lot of sense to me and maybe I'm wrong, but sounds like if you start with the standard repayment plan and have economic hardship down the line, you can't switch it. As a single person with no additional debt, would it be difficult to qualify? Would it be worth it then to take a lesser paying job right out of grad school in order to qualify?
Additional Loan Forgiveness/Cancellation:
It took a lot of digging, but I found a few places that mention an additional loan forgiveness program for OTs, where for the first 5 years of repayment up to $2000 a year ($10,000 overall) can be forgiven if you work with children, adolescents or veterans. Anyone have any additional info on this? AOTA's website just said this:
"AOTA recently succeeded in getting occupational therapy recognized as a profession of national need making occupational therapists who work with children, adolescents, and veterans eligible for additional loan forgiveness. The program will authorize loan forgiveness for up to $10,000 in loans over a 5 year period. This program is still in the process of being designed and implemented, and information will be posted on the AOTA Web site as it becomes available."
This website (http://ifap.ed.gov/sfahandbooks/attachments/0304Vol5Ch6.pdf) says that schools may cancel 100% of a Perkins Loan for full-time "qualified professional provider of early intervention services
in a public or other nonprofit program under public supervision." at the bottom of the page, it defines "qualified professional provider" to include OT, but at the same time this seems to be a part of the "Teacher Loan Cancellation" and it says OTs don't count as teachers. Can anyone offer some insight to this? Does this mean school-based OTs may have their loans forgiven or cancelled by their employer?
Grants:
I have heard that certain hospitals/employers offer to pay for tuition in exchange for working 2-3 years for them after graduating, because they are in rural areas that have a hard time attracting OTs.I have searched online but haven't really found many examples of this. Is this something that used to be done but isn't as much anymore? Does anyone know of specific employers who offer this, or know anyone who has done this and feels it was worth it or not?
Aside from AOTA and specific schools/states with scholarships, there really doesn't seem to be much out there for OTs in the way of grants. Anyone know of a good place to search, or any that exist in Pennsylvania? Are there any out there at all for first year OT students? From what little I've seen out there, they all seem to apply to 2nd year or graduating students.
Websites:
I know this was super long but hopefully it helped some of you trying to figure this out too. If anyone else has any info, websites or experience to share please do! Thanks!
http://www.aota.org/en/Education-Careers/Find-School/Aid/Loan-Forgiveness.aspx
http://www.professionaldevelopmentpath.com/occupational-therapy-schools-costs.html
http://ifap.ed.gov/sfahandbooks/attachments/0304Vol5Ch6.pdf
http://studentdoctor.net/2013/11/six-smart-ways-to-pay-off-your-student-loans/
http://www.finaid.org/loans/forgiveness.phtml
First of all, Loans:
It definitely sounds like 99% of aid available is in the form of loans, the federal ones being Stafford, Perkins and Graduate Plus. From what I understand, Stafford pays for up to 20,000, and Graduate Plus can cover the rest of expenses including cost of living expenses. So what is the Perkins loan and how does it differ? I haven't really researched private loans, but from what I can tell the benefits are minimal compared with federal, especially considering some loan forgiveness plans in place.
Public Service Loan Forgiveness:
I know there is a Public Service Loan Forgiveness Plan that after 120 monthly payments (essentially 10 years) working at least 30 hrs a week as an OT in certain settings, whatever is left in federal loans, including interest, is forgiven. It seems I would probably have to take approx. $100,000 of loans out for grad school, so this sounds like it would make a huge difference for me. How permanent is this and what are the odds of it disappearing by the time I would need it? Also, it sounds like it really covers a majority of OT work - is that correct, or would it greatly limit the amount of employers/settings I could pursue?
The student aid website also says the Public Servie Loan Forgiveness Plan can be combined with the Income-Based Repayment plan, for lower cost monthly payments (whatever is left in 10 years would still be completely forgiven.) To qualify for the IBR, you have to have a partial economic hardship at the time of application, even though if after you have IBR and no longer have economic hardship, you can stay on it. It doesn't make a lot of sense to me and maybe I'm wrong, but sounds like if you start with the standard repayment plan and have economic hardship down the line, you can't switch it. As a single person with no additional debt, would it be difficult to qualify? Would it be worth it then to take a lesser paying job right out of grad school in order to qualify?
Additional Loan Forgiveness/Cancellation:
It took a lot of digging, but I found a few places that mention an additional loan forgiveness program for OTs, where for the first 5 years of repayment up to $2000 a year ($10,000 overall) can be forgiven if you work with children, adolescents or veterans. Anyone have any additional info on this? AOTA's website just said this:
"AOTA recently succeeded in getting occupational therapy recognized as a profession of national need making occupational therapists who work with children, adolescents, and veterans eligible for additional loan forgiveness. The program will authorize loan forgiveness for up to $10,000 in loans over a 5 year period. This program is still in the process of being designed and implemented, and information will be posted on the AOTA Web site as it becomes available."
This website (http://ifap.ed.gov/sfahandbooks/attachments/0304Vol5Ch6.pdf) says that schools may cancel 100% of a Perkins Loan for full-time "qualified professional provider of early intervention services
in a public or other nonprofit program under public supervision." at the bottom of the page, it defines "qualified professional provider" to include OT, but at the same time this seems to be a part of the "Teacher Loan Cancellation" and it says OTs don't count as teachers. Can anyone offer some insight to this? Does this mean school-based OTs may have their loans forgiven or cancelled by their employer?
Grants:
I have heard that certain hospitals/employers offer to pay for tuition in exchange for working 2-3 years for them after graduating, because they are in rural areas that have a hard time attracting OTs.I have searched online but haven't really found many examples of this. Is this something that used to be done but isn't as much anymore? Does anyone know of specific employers who offer this, or know anyone who has done this and feels it was worth it or not?
Aside from AOTA and specific schools/states with scholarships, there really doesn't seem to be much out there for OTs in the way of grants. Anyone know of a good place to search, or any that exist in Pennsylvania? Are there any out there at all for first year OT students? From what little I've seen out there, they all seem to apply to 2nd year or graduating students.
Websites:
I know this was super long but hopefully it helped some of you trying to figure this out too. If anyone else has any info, websites or experience to share please do! Thanks!
http://www.aota.org/en/Education-Careers/Find-School/Aid/Loan-Forgiveness.aspx
http://www.professionaldevelopmentpath.com/occupational-therapy-schools-costs.html
http://ifap.ed.gov/sfahandbooks/attachments/0304Vol5Ch6.pdf
http://studentdoctor.net/2013/11/six-smart-ways-to-pay-off-your-student-loans/
http://www.finaid.org/loans/forgiveness.phtml