My daughter needs to take out loans for graduate school, starting her DPT program next month. It’s three years, three semesters. The current plan is to move home after graduation to aggressively pay them off (her older brother and sister lucked out paying no rent after undergrad and will have paid off about $80,000 in 5 years). I think the federal loans are best?
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Federal loans come with more protections than private loans.
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Federal grad loans have a higher interest rate and higher origination fee. But they do have more protections and repayment programs available (consolidations, repayment programs like income based repayment, public service loan forgiveness).
There might be some comparisons on the CFPB site.
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Check and see…how much loan money will she need? Grad students do have Direct Loans. And all can take out Grad Plus Loans as well (up to the cost of attendance, I believe).
@kelsmom what is the direct loan amount annually for a DPT student?
Her plan is to get a PT job after graduation, they appear to be plentiful and good paying in our area. We always went private and co-signed our kids’ loans, we have a great credit score.
My daughter is entering a health care profession for grad school. She completed the Fafsa and one of the things she was offered was a direct loan - I believe it was $20,500 for the year, split into 3 semesters (summer, fall, spring). She also has the option of the Grad Plus loan if necessary…up to the full cost of attendance.
One benefit of federal loans is that they will work with you if you are unemployed for any reason, and there is also PSLF (at least right now anyway).
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Yes, it’s $20,500/year guaranteed for grad students (unsubsidized). Students can borrow a Grad Plus loan to bridge the difference between any grants/scholarships, work study (if any) & $20,500 loan up to Cost of Attendance. It’s important to read this before deciding to take on private loans rather than the Grad Plus loan: Federal Student Aid.
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Thanks I just forwarded that to my husband and daughter.
I have a bit of experience with a DPT student, my D is just finishing up year 2 of her program. We are fortunate that our D does not have to take out loans but I can make some observations. First, pay attention to the expenses that are controllable. Food, lodging (location of clinicals can be important) and miscellaneous expense can be controlled. Look for and ask about scholarships which might be available. Some schools and programs will offer them on a per semester basis. Also some programs might offer wages for jobs that they have available such as assisting in classes etc. Usually it is not a lot of money but it can cover some of the costs. Look for clinicals either near where the school is so she can live in her university residence or near where you live or a family friend. Paying two rents and finding short term rentals is a pain. Finally, if you can pay the interest on any loan she receives. The interest accrued in those few years can add thousands of dollars to the loan.
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We pay interest on all of our kids’ loans starting day one. Since she will be in Boston, I’m hoping she can find clinical nearby. We live outside NYC so there are a lot of options near home (a medical school she was accepted to is a 10 minute walk from our house, another is a 15 minute drive). She’s been paying for her own rent/food for the past 2 years, rent will just be more expensive. She’s never not had a job so hopefully she can fit in some kind of work, TA, bartender, tutor…
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How do you get the unsubsidized loan? Daughter is also starting 2nd year of DPT and she completed fafsa but there are no loans awarded? Why would that be?
Regarding a job - it is virtually impossible to work while going to school in this program - she is in class 5 days a week 8 am to 6 pm and most Saturdays for labs. Very disappointed we didn’t understand the limitations on her time. Quite honestly, I question the value of this degree when the median income for physical therapist is only 80k - and its a flat career. For extra cash she is tutoring and babysitting.
My daughter just filled some stuff out yesterday (she’s still at college), she said there were options for subsidized, unsubsidized and plus. It is an expensive degree, my daughter has wanted to do this since freshman year in high school. Hoping living where we do puts her in the higher salary range. The owner of one of the PT centers she worked last summer already asked if she could work this summer (she said give her 3 years).
You might want to check out the roster/schedule. My daughter’s program is 12 months a year 5 full days a week. Hoping she gets a little more time for work this year - applying for many scholarships!
She should be eligible for an unsubsidized loan, as long as the school participates in the federal loan program. She should contact her financial aid office to ask about her aid. She needs to take responsibility for contacting them & understanding her aid options.
My future SIL is starting PT school next month. (Also D1 and D2 went to med school on loans… so BTDT. Twice)
All PT students are eligible to out up to $20,500/year in unsubsidized federal direct student loans and up to the full published COA as Grad Plus loans.
Grad Plus loans require a credit check, but as long as the student has no histlory of late credit payments or any bankruptcies, she should be eligible.
There is a 1.05% origination fee for direct loans and the current interest rate is 5.28%.
Private loans may have lower interest rates but many will require the student to begin immediate repayment. Both direct loans and Grad Plus loans will allow a student to defer repayment until 6 months after graduation. Federal loans offer a variety of repayment options. (IBR, ICR, PAYE and REPAYE)
Additionally there are some PT jobs where the employer will contribution funds toward a student loan repayment.
The VA has one such programs which will repay up to $200K of a health professional loans debt over 5 years. NOTE: that not all VA positions include repayment benefits.
The Indian Health Service also offers up to $40K in loan repayment over 2 years of service.
Currently PTs are not eligible for participation in the NHSP, but there is a bill currently under consideration in Congress that will extend loan repayment benefits to physical therapists.
Participants in the NHSC can earn up to $50K of loan repayment for 2 years of service and may be eligible to extend their service to 4 years and earn $100K of loan repayment.
Edited to add:
Several state also sponsors loan repayment programs for PTs–Alaska, New Jersey, New Mexico, and Iowa.
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Thanks for this information, my daughter’s program is at BU but expect her to return to NJ after graduation to help with repayment.
@Mjkacmom
Future SIL has been offered PRN shifts at the university hospital where he currently works as a PT aide. It’s on the same campus as the PT school. But his program is time intensive and he’s not sure he wants to give up his Sundays to work. He will be taking out federal loans to cover his tuition and fees, but his fiancée is earning enough to cover their combined living expenses. Her employment will also give him health insurance coverage–so one less expense he has to worry about. Additionally, fSIL received a half tuition & fees scholarship so he’s hoping to minimize his loan burden and only take the federal direct loans. He’s interested in doing in-patient neuro-rehab with stroke and head injury patients after graduation. He may try to do the VA option after he graduates.
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My daughter has worked as a PT aid at 3 locations (1 at school so that wasn’t paid). She’s hoping to squeeze in some bartending but not until the fall. She’s been getting by by working part time and full time over summers, hope she learns to love ramen.