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Is the debt worth it?


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I currently have $32k in undergraduate debt. I got accepted to an out-of-state pa program. I plan on living as cheap as possible. However, I estimate my total loan burden after two years of PA school will be around $155-160k including all fees and compounded interest.

 

Is that worth a $70-85k starting salary? I am hoping to work FP in a rural community, but nobody can guarantee that a person will get loan forgiveness/repayment. My sister in-law started at $63k working for the community health department, great benefits, but it didn't qualify for loan repayment. She just got an offer from the local prison to make $105k/year. Are these fears normal? I am also married and won't have the luxury of going were the jobs are. I will be stuck to one geographical location.

 

Advice/commentary is much appreciated!

 

 

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The debt is certainly not nice. But I think a factor larger than the debt is one's ability to relocate. As others have said, being limited to one geographical area really ties your hands.

 

Students that are willing/able to move anywhere after graduation can pick areas with lower costs of living, but relatively higher pay. That's my plan at least, and how I justify the debt.

 

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Honestly if you don't change your lifestyle and live like a poor college grad after PA school you should be able to dump tons of money back into your loans... Also if you are planning on working in rural community health as a FP PA Then you should qualify for federal and state loan forgiveness programs. It's something like 70K (in WA state) and 50K in federal funds.

 

Of course this is only what I have researched because I'm still not in PA school however I personally know lots of PAs who are working in FP and have gotten the loan repayments.

 

Just live below your means, and be smart about where you live and the dept will take care of itself. For me my real justification is the fact that as a PA you will never be out of a job and as long as you are working the dept will slowly drop away.

 

My 2 cents

 

 

 

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In a different thread, I posted a link to an article that recommended you not graduate with debt that exceeds one times your starting salary.

 

$150,000 in debt at 6.75% paid over 10 years is $1,723/mo. Remember, that's after tax money. You need to look at your income and taxes to figure after-tax income. Will you be able to make those payments and meet all your expenses? What if you get married, have children, etc.

 

Options are to find a less expensive way to attend PA school (like, in-state), work a few years first, to eliminate current debt, extend your payments out longer than 10 years.

 

 

 

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In a different thread, I posted a link to an article that recommended you not graduate with debt that exceeds one times you staying salary.

 

$150,000 in debt at 6.75% paid over 10 years is $1,723/mo. Remember, that's after tax money. You need to look at your income and taxes to figure after-tax income. Will you be able to make those payments and meet all your expenses? What if you get married, have children, etc.

 

Options are too find a less expensive way to attend PA school (like, in-state), work a few years first, to eliminate current debt, extend your payments out longer than 10 years.

 

 

 

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What do you consider less expensive? 

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Options are too find a less expensive way to attend PA school (like, in-state), work a few years first, to eliminate current debt, extend your payments out longer than 10 years.

Some states don't have great "in-state" options for tuition savings. ie, They have mostly private programs.

 

And the reality is, you really have to apply to more than one school.

 

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$150,000 in debt at 6.75% paid over 10 years is $1,723/mo. Remember, that's after tax money.

Wowzer!!!! That's a nice house. But if your earning potential is $30000 and after PA school it's $90000, it may be worth the 10 year $1,722/mo payback. Considering your take home increased by about $3600/month.

 

Of course if pre PA salary is $60000, well, it's a little different story. Tough decision.

 

 

 

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Wowzer!!!! That's a nice house. But if your earning potential is $30000 and after PA school it's $90000, it may be worth the 10 year $1,722/mo payback. Considering your take home increased by about $3600/month.

 

Of course if pre PA salary is $60000, well, it's a little different story. Tough decision.

 

This is how I'm looking at it.   For me, the increased earning potential with far more time off, and a career with longevity justifies the debt I will incur.  

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Some states don't have great "in-state" options for tuition savings. ie, They have mostly private programs.

 

And the reality is, you really have to apply to more than one school.

Understood. That makes it tougher but not impossible, though perhaps not for the OP who, apparently, can't move. Others in this situation could consider moving to a state with multiple in-state programs, working for a year or two to gain residency status and then applying. You need, however, to pay careful attention to the residency rules.

 

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It hadn't occurred to me before, but I am sure it has to others: anyone who laments the changing face of the profession from paramedics in their 30's to 23 year old scribes can probably lay some of the blame on the programs who are pushing the debt envelope up and up.  The more debt a program demands one incurs, the younger their students become.

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It hadn't occurred to me before, but I am sure it has to others: anyone who laments the changing face of the profession from paramedics in their 30's to 23 year old scribes can probably lay some of the blame on the programs who are pushing the debt envelope up and up. The more debt a program demands one incurs, the younger their students become.

Interesting point.

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Understood. That makes it tougher but not impossible, though perhaps not for the OP who, apparently, can't move. Others in this situation could consider moving to a state with multiple in-state programs, working for a year or two to gain residency status and then applying. You need, however, to pay careful attention to the residency rules.

 

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Possible. Although the time spent moving and waiting a year or two in another state for residency might be less of a savings than just taking out more loans and getting into school and a job two years sooner. All depends where one is on the admissions timeline.

 

I think just getting in is hard enough. And that euphoria of acceptance anesthetizes the pain of incredible loan debt. At least for a little while. :)

 

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Am I wrong in thinking tuition is kind of tied to salary? Like as PA salaries keep going up so would tuition? Kind of makes sense to me actually.. until tuition increase outstrips salary increases. I think this is true for most professions.

I can't find the stats on it right now, but I was reading an article recently that discussed the huge inflation of the cost of all higher ed, regardless of the career it leads to. The increase in tuition is not in line with economic inflation, causing the cost of university to become a much larger burden on students.

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What is not in doubt is that the cost of university per student has risen dramatically and graduate salaries have been flat for much of the past decade. Student debt has grown so large that it stops many young people from buying houses, starting businesses or having children. Some may wind up living in their parents’ basements until they are old enough to collect Social Security. (Of course I am exaggerating.) But the burden is still heavy for many. It does not help those who take out such loans eventually drop out of college; which they must still repay their debts. Many four-year degrees usually drag out a lot longer than the four year plan, and as cost continually rises. The lousy national job market does not help, either. So, what is one to do? Is college worth it? YOU can only decide for yourself.

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I can't find the stats on it right now, but I was reading an article recently that discussed the huge inflation of the cost of all higher ed, regardless of the career it leads to. The increase in tuition is not in line with economic inflation, causing the cost of university to become a much larger burden on students.

I believe this statement is correct and there is no direct correlation between salaries and tuition. Tuition goes up with DEMAND and demand is driven by the availability of loans (easy money.) This is especially true for undergraduate education which is the primary driver of higher education inflation but, as undergrad costs go up, graduate ed costs can be expected to follow.

 

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