Very interesting, Sean, thanks for putting this together, and it is interesting to read in light of both your previous post as well as from the regular comments on social media about PT salaries, reimbursement, and the transition to the DPT. Any idea to what extent the student loan debt varies between professions trained for the same number of years, or would it be possible to find the data?
Great question David! That's my next step - trying to come up with a way to estimate average debt by profession that is reasonable. I'm going to start with CAPTE, not sure they have that data, but will give it a shot. I'd like to do something like a Debt to Asset ratio based on estimated debt and estimated assets (based on salary as the primary asset directly related to the incurred debt). Just not sure how reasonable it is to find, and then to trust, such estimates - particularly across professions. Here is what I can say quickly. For PT, assuming someone starts at 70,000 a year and works towards the average linearly, their 20 year average salary is $83,890, which results in 1,679,600 in gross income over 20 years. If we assume 100,000 in dept from PT school, then that is about 16.80 dollars of salary (assets) for every 1 dollar of debt based entirely on the present value (not trying to add to this mix the future value) of money. I have no idea how that compares, or, at this point, how my estimates hold up to reality.
Of course, many DPT students enter DPT programs with debt from their undergraduate education so the 100,000 could be an underestimate. And, the salary is an overestimate, since no one has their gross salary available as a cash asset given the cost of health insurance (ironically) and at a minimum federal income taxes (I live in a state with no income taxes).
Another approach I'm playing around with is using the "economic value" report to come up with what the value of a PT working full time for a year is to the economy as compared to what they earn.
I appreciate and all comments, questions, feedback or suggestions!
Very interesting, Sean, thanks for putting this together, and it is interesting to read in light of both your previous post as well as from the regular comments on social media about PT salaries, reimbursement, and the transition to the DPT. Any idea to what extent the student loan debt varies between professions trained for the same number of years, or would it be possible to find the data?
Great question David! That's my next step - trying to come up with a way to estimate average debt by profession that is reasonable. I'm going to start with CAPTE, not sure they have that data, but will give it a shot. I'd like to do something like a Debt to Asset ratio based on estimated debt and estimated assets (based on salary as the primary asset directly related to the incurred debt). Just not sure how reasonable it is to find, and then to trust, such estimates - particularly across professions. Here is what I can say quickly. For PT, assuming someone starts at 70,000 a year and works towards the average linearly, their 20 year average salary is $83,890, which results in 1,679,600 in gross income over 20 years. If we assume 100,000 in dept from PT school, then that is about 16.80 dollars of salary (assets) for every 1 dollar of debt based entirely on the present value (not trying to add to this mix the future value) of money. I have no idea how that compares, or, at this point, how my estimates hold up to reality.
Of course, many DPT students enter DPT programs with debt from their undergraduate education so the 100,000 could be an underestimate. And, the salary is an overestimate, since no one has their gross salary available as a cash asset given the cost of health insurance (ironically) and at a minimum federal income taxes (I live in a state with no income taxes).
Another approach I'm playing around with is using the "economic value" report to come up with what the value of a PT working full time for a year is to the economy as compared to what they earn.
I appreciate and all comments, questions, feedback or suggestions!