Other OT-Related Information Anyone else going to be in a massive sh** load of debt?

[Confusedandlostone]

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Calculating and crunching the numbers since I just received my school's offering of direct unsub. loans and I am estimating to be in around 150k in debt in total after schooling(provided i don't receive grants or scholarships). I was already around 75k from loans in undergraduate and plus my horrible experience at my old grad program(long story, view my original thread if you want to know how I'm this much debt already). My new school's cost of tuition overall is about 75k(which is significantly less than my old school's cost) but still.....the debt is unnerving. I've researched the average pay of an occupational therapist and the consensus is that we make around 70k per year. So I guess I would be able to pay off my loans in around 2 years and some change to be debt free if I decide to still live with my parents or move in with one of my older siblings. Are my calculations correct, or am i missing something? Anyone else in a similar situation? Just looking to vent and relate to others lol. Also, I am planning to work in either an acute care setting(i.e. hospital) or skilled nursing facility since I have experience in those settings and LOVED it there.

 

[Kidamnesiac]

It's the state of the world we live in...they force us to go through a ton of school to get a job, but the school costs a ton of money, so we work to pay off the thing that gave us a job in the first place. That's one of the strongest reasons that an OTD just isn't worth it...you're simultaneously paying for an extra year of school, and losing a year of pay/experience (and IMO, the experience is more valuable than the extra year of school). Make sure to speak out against mandatory OTD so that future generations don't get stuck with an even greater bill!

 

[resot]

May I ask how you came to the decision that you will be able to pay off 150k in 2 years? I believe that would mean you are making monthly payments of over 6k a month, assuming your rate is at 6.8. (And unless you are planning to pocket all your money without paying any taxes or other deductions and using every penny for your loan payment) that is not going to happen with a 70k salary.

Maybe there are other considerations that I didn't see you mentioning: are you already making payments on the loans while in school? Are you coming into a nice sized inheritance? Or are you planning to work 80 hours a week at two jobs?

Also, 70k is a fluid estimate of what you will be making. In Los Angeles, hospital jobs (full time anyway) are hard to come by and will typically start new grads in the 60-65k range. At a snf you have a better chance of making the 70k or a bit more.

 

[mgOT]

You may want to consider additional costs such as housing, textbooks, and definitely the costly NBCOT exam. What you might want to consider is Loan Forgiveness program by working for a non-profit organization typically in rural areas for a number of years after you have completed OT school, passed the NBCOT, and receive a license to work. I am not working yet but this is my plan for next year after I am done with level 2 fieldwork. Other option is to check with the school if they have part-time campus jobs or fellowships. My school offers TA fellowships that covers part of the tuition plus a small stipend.

 

[Confusedandlostone]

May I ask how you came to the decision that you will be able to pay off 150k in 2 years? I believe that would mean you are making monthly payments of over 6k a month, assuming your rate is at 6.8. (And unless you are planning to pocket all your money without paying any taxes or other deductions and using every penny for your loan payment) that is not going to happen with a 70k salary.

Maybe there are other considerations that I didn't see you mentioning: are you already making payments on the loans while in school? Are you coming into a nice sized inheritance? Or are you planning to work 80 hours a week at two jobs?

Also, 70k is a fluid estimate of what you will be making. In Los Angeles, hospital jobs (full time anyway) are hard to come by and will typically start new grads in the 60-65k range. At a snf you have a better chance of making the 70k or a bit more.

To be honest, i am horrendous at math. I just did research on comparable salaries of occupational therapists and reached that the general consensus of an OT's salary was around 70k. 150k divided by 70k= 2 years and some change if working full time and pocketing the money while living with parents( i know, i know, my math sucks🤔)? I'm sure there's a lot more to it, but I was just giving myself a rough estimate and trying to calm myself that the debt to become an OT will be worth it.......

Anyone else going to be in this much debt as I am, or had i "dun goofed"? There's no turning back now for me, becoming an OT has been a dream of mine for so long and i can't turn back now

 

[resot]

To be honest, i am horrendous at math. I just did research on comparable salaries of occupational therapists and reached that the general consensus of an OT's salary was around 70k. 150k divided by 70k= 2 years and some change if working full time and pocketing the money while living with parents( i know, i know, my math sucks🤔)? I'm sure there's a lot more to it, but I was just giving myself a rough estimate and trying to calm myself that the debt to become an OT will be worth it.......

Anyone else going to be in this much debt as I am, or had i "dun goofed"? There's no turning back now for me, becoming an OT has been a dream of mine for so long and i can't turn back now

I don't want to discourage you from OT or tell you that you made the wrong decision. Especially since it is your dream.

But you may need someone to help you figure out your finances before you graduate so you are set up to properly tackle your debt. Do you currently have a budget that you stick to, and do you track all your expenses? If not, I would start now so that you can get a better understanding of how much your cost of living is month to month.

Let's look at some (rough) hypotheticals. Let's say you graduate and land a position with a 70k salary. After taxes and other deductions, you may be left with about 50k of that in your pocket (differs per location, of course). As much as we would love to say, "we are definitely going to put all of that money into my loan" it is not going to happen. Even if you live for free with your family, you will have expenses: phone bill, car payments, car insurance, gas, food, entertainment, health insurance, emergency fund; shopping for work related necessities, eating out, etc. If you are unmarried with no children, you may have less expenses to worry about. Everyone's situation is different. But, in the end, those expenses will cut in to your loan payments.

Check out a loan repayment calculator like the one at: http://www.ecampustours.com/for-stu...t-loan-repayment-calculator.aspx#.VYj8-1JHanP

If you crunch some numbers, you can figure out how long you may pay on your loans/how much your monthly payments would be. There's a reason why people recommend limiting education loans to being the equivalent of your first year's salary: it is difficult to pay expenses and live a comfortable (but not excessive) life if you take out much more.

 

[Confusedandlostone]

I don't want to discourage you from OT or tell you that you made the wrong decision. Especially since it is your dream.

But you may need someone to help you figure out your finances before you graduate so you are set up to properly tackle your debt. Do you currently have a budget that you stick to, and do you track all your expenses? If not, I would start now so that you can get a better understanding of how much your cost of living is month to month.

Let's look at some (rough) hypotheticals. Let's say you graduate and land a position with a 70k salary. After taxes and other deductions, you may be left with about 50k of that in your pocket (differs per location, of course). As much as we would love to say, "we are definitely going to put all of that money into my loan" it is not going to happen. Even if you live for free with your family, you will have expenses: phone bill, car payments, car insurance, gas, food, entertainment, health insurance, emergency fund; shopping for work related necessities, eating out, etc. If you are unmarried with no children, you may have less expenses to worry about. Everyone's situation is different. But, in the end, those expenses will cut in to your loan payments.

Check out a loan repayment calculator like the one at: http://www.ecampustours.com/for-stu...t-loan-repayment-calculator.aspx#.VYj8-1JHanP

If you crunch some numbers, you can figure out how long you may pay on your loans/how much your monthly payments would be. There's a reason why people recommend limiting education loans to being the equivalent of your first year's salary: it is difficult to pay expenses and live a comfortable (but not excessive) life if you take out much more.

Thanks so much resot! I really appreciate you taking the time to really put things in a realistic perspective for me. I will most likely(actually I am kind of forced in this situation) to live with my parents or another sibling after schooling. I did not take into consideration the cost of living. However, I am also planning to work during school to possibly offset at least the interest rate that will accrue. Either way, there is no getting out of debt. Debt, especially in our generation, is extremely common. Some students will have greater debt than others. In my specific case, I just tell myself "Well, med students probably have way more debt than I do" and I feel somewhat relieved lol (although my debt is also comparable to their loans and the difference is that they can actually pay it off)

 

[cb31]

I will also be in a lot of debt upon graduating. I'm worried, but then not really.... It's a career that I want to go into and unfortunately taking out loans is the only way for me to get there. I've thought about living at home afterwards, and payin down my loans, but I'm probably just going to get a roommate to offset some cost.... I just don't think I would be happy at home. If me being happy and "free"means spending an extra two to three years paying off loans then so be it. On a positive note at least we will get a tax break!! Haha. When I graduate I will probably be like 140-150k in debt (thats including interest that accumulated and undergrad loans) so it's a lot.... but if I bring home about 3k a month and have a roommate to offset cost of living, I think I can manage 700+ in loan payback. It's not ideal, obviously, but it'll work out!!

 

[Confusedandlostone]

I will also be in a lot of debt upon graduating. I'm worried, but then not really.... It's a career that I want to go into and unfortunately taking out loans is the only way for me to get there. I've thought about living at home afterwards, and payin down my loans, but I'm probably just going to get a roommate to offset some cost.... I just don't think I would be happy at home. If me being happy and "free"means spending an extra two to three years paying off loans then so be it. On a positive note at least we will get a tax break!! Haha. When I graduate I will probably be like 140-150k in debt (thats including interest that accumulated and undergrad loans) so it's a lot.... but if I bring home about 3k a month and have a roommate to offset cost of living, I think I can manage 700+ in loan payback. It's not ideal, obviously, but it'll work out!!

That's true, this is something I've wanted for a while and I don't really see myself doing anything else. If you're debt calculations are correct, then we will be in similar debt/situations . It's relieving to know that I'm not alone in this massive debt situation and there are plenty others who are in similar situations. Unfortunately, there are limited options for financial aide for graduate students as they consider us independent. Best of look to you in your program, and yes, it will definitely pay off in the end. The OT I've shadowed at the hospital setting only worked a 9-4/5 job which mostly consisted of doing evaluations with some treatments here and there(since it was an acute care setting), so it's definitely worth it.

 

[MarieChilds]

A lot of people have MOT debt of $100k+. A lot of programs cost close to that and that does not include cost of living, which for a lot of people (those with kids, etc.) can end up being a lot. I would guess that more than half of those with MOT debt also have undergrad debt. So you are not alone. But you will probably spend a good part of your life paying back your loan. Cost of living always ends up more than you would expect. And if you are managing to live on your money and your monthly loan bill is not outrageously high, having the loan bill for 10+ years is not the end of the world. I know a guy who graduated a very expensive OT program 10 years ago and is still paying back the loan, but he has a decent quality of life.

 

[FutureOT2020]

I will probably graduate with $45-50k of unsubsidized loans, which will likely be ~$60k when I graduate because of interest. It's stressful but also a motivator to do really well in school. This is an investment in yourself and your future ! Also if you borrow more than you need you can return it up to 90 days(?) after the loan money has been disbursed (talk to your financial aid office). Interest build up daily, I intend to pay $300 each month while in school. It is not a lot but maybe it will lower the overall interest by the time I graduate.

 

[Confusedandlostone]

Idea: It would be sick if I can work at a acute care hospital monday to friday and then saturday work at a skilled nursing facility with my sundays being off. Anyone know of any therapist who does this? When I worked as an aide, a couple therapists said working PRN would greatly enhance the salary of a therapist, although I don't know the exact reasons why PRN therapists get paid a lot.

 

[cb31]

Idea: It would be sick if I can work at a acute care hospital monday to friday and then saturday work at a skilled nursing facility with my sundays being off. Anyone know of any therapist who does this? When I worked as an aide, a couple therapists said working PRN would greatly enhance the salary of a therapist, although I don't know the exact reasons why PRN therapists get paid a lot.

I've met a lot of therapist that actually do that ... they work a full time job and also work a PRN job. It's pretty common... I'm hoping to do that when I graduate.

 

[MarieChilds]

You are paid more PRN because you are not full time and do not get benefits. If you have a full time job with benefits, you can always do PRN on the side, filling your days off or after hours.

 

[Confusedandlostone]

You are paid more PRN because you are not full time and do not get benefits. If you have a full time job with benefits, you can always do PRN on the side, filling your days off or after hours.

That's awesome! Anyone know a rough estimate of what a therapist who works at an acute care hospital while doing snf on the side make? This would be my ideal work schedule

 

[cb31]

That's awesome! Anyone know a rough estimate of what a therapist who works at an acute care hospital while doing snf on the side make? This would be my ideal work schedule

It really will vary... some jobs... cities... states... pay there therapist different amounts... the amount you make can simply depend on the state you live in. For example, I shadowed in California and the owner of an OT clinic says he STARTS his OTs off with 65k while places that I've volunteered at on the east coast said they made like 50k starting off. So there are lots of factors that go into salary and PRN jobs can vary a lot too... although I have heard that SNF OT get paid a little more than other fields.

 

[otsomeday]

That's awesome! Anyone know a rough estimate of what a therapist who works at an acute care hospital while doing snf on the side make? This would be my ideal work schedule

I work Full time at a SNF and PRN on the weekends at Acute care rehab. I am a new grad and make around 75k-78k/year combined.

 

[FutureOT2020]

.

 

[lao27746]

My friend graduated from USC several years ago and currently works as an OT for a school. He makes about 70-80 thousand a year and pays $1200 each month in student loans (he didn't take out any loans during his undergrad). That really scares me bc I'm already in debt with over $40 thousand in undergraduate loans. It sucks bc the cost of living is so high here in Cali that I'm probably going to have to live with my parents while I'm paying off all these loans

 

[Bokonomy]

I'm

My friend graduated from USC several years ago and currently works as an OT for a school. He makes about 70-80 thousand a year and pays $1200 each month in student loans (he didn't take out any loans during his undergrad). That really scares me bc I'm already in debt with over $40 thousand in undergraduate loans. It sucks bc the cost of living is so high here in Cali that I'm probably going to have to live with my parents while I'm paying off all these loans

Is he glad he went to USC? I have 20k in loans at the moment. I think I'll do the 20 great plan and hopefully get public service loan forgiveness. :/

 

[cb31]

My friend graduated from USC several years ago and currently works as an OT for a school. He makes about 70-80 thousand a year and pays $1200 each month in student loans (he didn't take out any loans during his undergrad). That really scares me bc I'm already in debt with over $40 thousand in undergraduate loans. It sucks bc the cost of living is so high here in Cali that I'm probably going to have to live with my parents while I'm paying off all these loans

USC is really expensive tho... if you have undergrad debt u should try and find the cheapest school possible!! I will say that most people will probably graduate with 60-120k in debt (including any interest and undergrad debt). Debt is a necessary evil so again just go to a cheap school and be happy with your career. It will all work out in the end!!

 

[RaysBrotherRob]

Calculating and crunching the numbers since I just received my school's offering of direct unsub. loans and I am estimating to be in around 150k in debt in total after schooling(provided i don't receive grants or scholarships). I was already around 75k from loans in undergraduate and plus my horrible experience at my old grad program(long story, view my original thread if you want to know how I'm this much debt already). My new school's cost of tuition overall is about 75k(which is significantly less than my old school's cost) but still.....the debt is unnerving. I've researched the average pay of an occupational therapist and the consensus is that we make around 70k per year. So I guess I would be able to pay off my loans in around 2 years and some change to be debt free if I decide to still live with my parents or move in with one of my older siblings. Are my calculations correct, or am i missing something? Anyone else in a similar situation? Just looking to vent and relate to others lol. Also, I am planning to work in either an acute care setting(i.e. hospital) or skilled nursing facility since I have experience in those settings and LOVED it there.

You are nowhere near alone. I would assume any lower or middle class student is in your predicament whether they only completed an undergrad or grad school too. The thing you need to take into consideration is if you would really love to practice as an OT. If you love the work then accumulating the debt shouldn't be as big of concern as it seems. OT has a very high job satisfaction, and great job security so over the long run money will not be an issue. Don't let the debt scare you. I know PA students who rack up $200,000 by the time they graduate, granted they can make a lot more, but they still pay it off.

I would also agree to stick with your masters, especially if you don't have any ambitions towards working in a research department or some type of university setting. The OTD can be $40,000+ more than an MOT.

Debt is inevitable, if you have a passion and good work ethic you will be successful. Best of luck.

 

[gottabeOT]

Just to offer a different perspective, I personally will not owe more than about $10K in debt when I graduate from my MOT program. If you'd like to read more about my personal experience and how I avoided having this kind of debt, you can check out my blog post HERE. My situation is somewhat unique in that I did not have any undergraduate debt, but I have also worked VERY hard to find funding for my graduate education.

Additionally, because the issue of student debt and paying for OT school is a HUGE thing that needs to be considered before, during and after the completion of an OT program, I've started a new blog series titled "Funding Your OT Education" that people here may find helpful. You can read it HERE, and follow along as I offer tips, ideas, and funding sources for people in multiple stages of their OT school journey.

My personal opinion is that there are many ways to avoid going into significant debt during grad school, if you are willing to make a few sacrifices and make wise decisions about where to go for OT school and what to do after school. For example, although I was accepted into BU's top-ranked OT program when I applied, I had to consider how much debt I would be in for a two year program in a fairly expensive city versus the amount of debt I would rack up from attending a two year program where I received in-state tuition and multiple sources of funding to help cover costs. For me, there was no way that having "the name" was worth the thousands of dollars I'd pay back -- and I'm still going to a top ten ranked school for ALMOST NOTHING!

 

[otsomeday]

Just to offer a different perspective, I personally will not owe more than about $10K in debt when I graduate from my MOT program. If you'd like to read more about my personal experience and how I avoided having this kind of debt, you can check out my blog post HERE. My situation is somewhat unique in that I did not have any undergraduate debt, but I have also worked VERY hard to find funding for my graduate education.

Additionally, because the issue of student debt and paying for OT school is a HUGE thing that needs to be considered before, during and after the completion of an OT program, I've started a new blog series titled "Funding Your OT Education" that people here may find helpful. You can read it HERE, and follow along as I offer tips, ideas, and funding sources for people in multiple stages of their OT school journey.

My personal opinion is that there are many ways to avoid going into significant debt during grad school, if you are willing to make a few sacrifices and make wise decisions about where to go for OT school and what to do after school. For example, although I was accepted into BU's top-ranked OT program when I applied, I had to consider how much debt I would be in for a two year program in a fairly expensive city versus the amount of debt I would rack up from attending a two year program where I received in-state tuition and multiple sources of funding to help cover costs. For me, there was no way that having "the name" was worth the thousands of dollars I'd pay back -- and I'm still going to a top ten ranked school for ALMOST NOTHING!

I wouldn't have any debt either if I had attended a state school. But state schools are extremely difficult to get into.

 

[cb31]

Just to offer a different perspective, I personally will not owe more than about $10K in debt when I graduate from my MOT program. If you'd like to read more about my personal experience and how I avoided having this kind of debt, you can check out my blog post HERE. My situation is somewhat unique in that I did not have any undergraduate debt, but I have also worked VERY hard to find funding for my graduate education.

Additionally, because the issue of student debt and paying for OT school is a HUGE thing that needs to be considered before, during and after the completion of an OT program, I've started a new blog series titled "Funding Your OT Education" that people here may find helpful. You can read it HERE, and follow along as I offer tips, ideas, and funding sources for people in multiple stages of their OT school journey.

My personal opinion is that there are many ways to avoid going into significant debt during grad school, if you are willing to make a few sacrifices and make wise decisions about where to go for OT school and what to do after school. For example, although I was accepted into BU's top-ranked OT program when I applied, I had to consider how much debt I would be in for a two year program in a fairly expensive city versus the amount of debt I would rack up from attending a two year program where I received in-state tuition and multiple sources of funding to help cover costs. For me, there was no way that having "the name" was worth the thousands of dollars I'd pay back -- and I'm still going to a top ten ranked school for ALMOST NOTHING!

Great tips, but still not plausible for everyone! Majority people will have debt, but I do hope people read over your blog and is able to benefit from your advice!

 

[gottabeOT]

Great tips, but still not plausible for everyone! Majority people will have debt, but I do hope people read over your blog and is able to benefit from your advice!

Agreed! As I mentioned, my situation is somewhat different than that of many people who are applying to OT graduate programs. I do have debt, but I've made many financial and academic decisions and actively sought out and pursued opportunities that have allowed me to decrease my debt load significantly! There is a ton of money out there if you're willing to look for it and work for it!