Based on where I live + undergrad debt I would owe over 100k in student loan debt after PT school. Is this doable?
Is 100k+ too much debt?
- Thread starter johnfree7
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This is too much debt. Have you calculated the monthly payment on that kind of debt?
the tuition alone at my state schools are ~90k each
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Is it too much debt? YES!! Is it a "normal" amount of debt for PTs? Sadly, yes. I'm more concerned with students taking on that kind of debt load if they also have massive undergrad student loans.
That's what I'm worried about. Can you still live a decent (not extravagant) lifestyle with it after finishing? I'm not expecting to make 6 figures out of school or anything. I just hope not living barely above the poverty line the rest of my life
Draft up a sample budget for when you'll be working post-graduation. Be realistic with your assumptions for salary, expenses and loan repayments. Don't forget federal and state taxes (if applicable) because they will take a big chunk off your pay. If you think you can live within that budget, go for the degree and if not, find a cheaper school or work on paying off your undergrad debt.
I often see postings similar to yours, such as "Can I afford this?", or "should I take out $250K in loans for school?" IMO one of the ways to tackle those questions is to project yourself into the future, taking into account your own preferences (e.g., do you like to eat out, or do you prefer to save $ by cooking your own meals?) and see how different scenarios would play out. Excel and Google Spreadsheet are wonderful tools for this kind of "guesstimates."
I often see postings similar to yours, such as "Can I afford this?", or "should I take out $250K in loans for school?" IMO one of the ways to tackle those questions is to project yourself into the future, taking into account your own preferences (e.g., do you like to eat out, or do you prefer to save $ by cooking your own meals?) and see how different scenarios would play out. Excel and Google Spreadsheet are wonderful tools for this kind of "guesstimates."
That would be like $1,100 a month in student loan payments every month for 10 years. The average PT salary is like $60,000 a year, or take home about $3750 a month. So $2650 a month after taxes and student loans. Take out another $2000 for mortgage, car payments, insurance, and you are left with say $600 a month for food, savings, investing, entertainment, etc.
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Everybody's situation is different, but for me 100k is too much debt. I'm 34 and I'm on the cusp of starting a family. The only school I am applying to is Army-Baylor. I was in the Army and I have many reasons for applying to this program, but not having to pay a huge tuition bill is definitely one of those reasons. Having a huge student loan payment would keep me from doing other things I want to do like buying a house and paying for my kid's college. Honestly, if I don't get into Army-Baylor next month I'm going to turn my efforts into getting into the best MBA program I can. I think I would make one hell of a PT, but I also want to have enough disposable income to make sure my family is taken care of.
Average STARTING salary might be in that range but you will make more money eventually. Also that take home figure is grossly overestimated. Other than fed and state taxes are social security, Medicare/Medicaid, and any local taxes, and taking money out for retirement (unless you want to work until you die). Also don't forget about health insurance premiums which are likely going to cost another hundred or so dollars. I started making more than that but my take home was about 500 less per month
Just keeping it real.
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To add what Bluecase said on your figures. You likely wouldn't be buying a house immediately after graduation so 2k a month for a mortgage probably won't be your expense. My logic is that as a college student I've gotten used to a cheap lifestyle/living with a roommate for cheap rent. If I keep that up for a year or two post grad I will be able to make a major dent into my loans
Sure, some areas you would need 2k for your rent, but in those areas you'd probably find a higher than average starting salary as well.
Sure, some areas you would need 2k for your rent, but in those areas you'd probably find a higher than average starting salary as well.
Right, these are just ballpark numbers.
Let's not miss the forest for the trees. The point of my post is that being $100,000 in debt for PT school is a bad idea.
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I don't agree. A few problems with this post is that you are taking the regional price of PT school, but then not factoring that region when using your average salary, and you are acting like that salary won't rise as you become more experienced.
Also different jobs will pay different amounts (a new DPT at a clinic I shadowed at said he had offers of 65k and 9ok out of school), and just like any other field some PTs will be more successful than others.
My mother opened 4 PT clinics and in her peak made well more than the 100k it takes to obtain a degree currently.
To keep my viewpoint simple, taking on 6-figure debt for a degree is betting on yourself professionally. I personally love the field and am confident that I will be great in it. So I'm willing to make that bet on myself. It's up to you if you feel the same
Good luck.
