Student Debt Discussion (just for fun)

[Ndebt]

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Feel free to chime in here but this is how it is: Student debt is a major problem here in the US much like economy and immigration issues. I want to talk about how this is going to affect PT in the long run.
My prediction is as follows: there are several ideas to solve the student debt issue but one remains the most obvious. As stated by Barack Obama, student debt can be greatly impacted by REDUCING the amount of "aid" the government gives out (we are talking loans here). Hey if they can't borrow the money, they can't be in debt, right? It does make sense and should work in the long run for the future students, in my opinion.
Here's where the problem is; If they can't borrow the money, PT schools can no longer hike up the prices because it will then be the more affordable schools that attract students. All of the sudden, PT school is cheaper across the board and students are borrowing less.
Seems nice, but I'm thinking there will be consequences in PT salary with students being happy to be paid less because they owe much less in loans.
I think these events will certainly unfold in that order, but that's just my prediction.
Let's hear your what you think! Do you feel that PT salary will remain stable? Can we fix student debt without affecting salaries?

 

[Kuhdaytee]

I don't understand the issues behind student loans terribly well, but I feel like you're oversimplifying the issue. I don't know anything about the government reducing student loan offers. Honestly, there are so many students that apply to PT school every year, that students would just have to find other ways to pay for it - via private loans, family members, or saving up money before they start school. I don't see PT school getting cheaper anytime soon, because there is such a huge demand from people applying to these schools.

 

[jesspt]

Feel free to chime in here but this is how it is: Student debt is a major problem here in the US much like economy and immigration issues. I want to talk about how this is going to affect PT in the long run.
My prediction is as follows: there are several ideas to solve the student debt issue but one remains the most obvious. As stated by Barack Obama, student debt can be greatly impacted by REDUCING the amount of "aid" the government gives out (we are talking loans here). Hey if they can't borrow the money, they can't be in debt, right? It does make sense and should work in the long run for the future students, in my opinion.
Here's where the problem is; If they can't borrow the money, PT schools can no longer hike up the prices because it will then be the more affordable schools that attract students. All of the sudden, PT school is cheaper across the board and students are borrowing less.
Seems nice, but I'm thinking there will be consequences in PT salary with students being happy to be paid less because they owe much less in loans.
I think these events will certainly unfold in that order, but that's just my prediction.
Let's hear your what you think! Do you feel that PT salary will remain stable? Can we fix student debt without affecting salaries?

I don't see the amount of student debt impacting the salary for first-time PTs, regardless if they owe more or less than what they typically do now. It will continue to be primarily impacted by demand and by third party reimbursement rates.

 

[BiffTheFlashRogers]

All I know is I'm going to have ~60k altogether once I'm done, and it makes me nauseous to think about. And I say that full well knowing that there are many, many new DPT grads (and other grads as well) entering the workforce with much more debt than that. The whole student loan/financial aid thing is pretty new to me (didn't have to take anything out for undergrad) so I guess that is what makes it scarier.

 

[YoungMD243]

Debt is inevitable unless you have rich parents who pay for your schooling. I recently spoke to a DPT professor and he told me most of the students in his class are well over 100k in debt once they enter the program. He told me the reason why they're in so much debt is because they decide they want to go to a top notch private school not realizing how little employers look at the school you attended for employment. Like others have stated in the forums, play it smart, don't take out loans you don't have to, and go the cheapest route.

 

[TravisDPT]

Debt is inevitable unless you have rich parents who pay for your schooling. I recently spoke to a DPT professor and he told me most of the students in his class are well over 100k in debt once they enter the program. He told me the reason why they're in so much debt is because they decide they want to go to a top notch private school not realizing how little employers look at the school you attended for employment. Like others have stated in the forums, play it smart, don't take out loans you don't have to, and go the cheapest route.

I can speak to this personally. I chose to attend a private university for my undergrad studies. Financially speaking, if I could do it all over again, I would have went with the state school. No aid from family + federal loans + private loans = lots of loan payments for lots of years. However, I had the best time at my undergrad, so it would be a tough choice.

 

[apta_pharaoh]

This works for undergad. But there are not enough PT schools or seats in each for this strategy to work. There are 4 going on 5 PT schools in Jersey, and some take their own students. It would be so hard to get accepted and pay. I remember hearing Mark Cuban say what you said before. But this strategy would make it like impossible to be a doctor or even a PT unless you were rich.

 

[Ndebt]

This works for undergad. But there are not enough PT schools or seats in each for this strategy to work. There are 4 going on 5 PT schools in Jersey, and some take their own students. It would be so hard to get accepted and pay. I remember hearing Mark Cuban say what you said before. But this strategy would make it like impossible to be a doctor or even a PT unless you were rich.

That's interesting, you have a point there. What do you think about the whole loan forgiveness thing. I kind of feel like it's similar to borrowing money you never plan to pay back and charging the tax payers. I know the banks don't forgive loans, maybe the economy would improve if the gov stepped away from student loans and let banks get into it.

 

[Azimuthal]

That's interesting, you have a point there. What do you think about the whole loan forgiveness thing. I kind of feel like it's similar to borrowing money you never plan to pay back and charging the tax payers. I know the banks don't forgive loans, maybe the economy would improve if the gov stepped away from student loans and let banks get into it.

I don't mind loan forgiveness, given the stipulation of having to work for a non-profit 501(c)3 (most hospitals) or government agencies. Those areas tend to pay less than the private sector, and in many cases (Native American Reserves, lower density areas, etc.) tend to be underrepresented, underserved, and in low desirable areas. Think of the costs to tax payers providing lifetime care for people who could have benefited from preventative care, civil costs for delayed representation, etc. The program is not a handout, I see it as needs-based. Sick people can't work. If they do work, their productivity is less than optimal. How would their contribution affect the economy, then?

You're probably too young to know, but banks were the middleman for .gov student loans. That didn't turn out well, had some reform, and now we're here...

What I do mind are the high loan limits, the interest rates, and schools not being held to a higher accountability to provide better non-government funding in terms of grants, etc. Their current ratios are insufficient.