You’ve been accepted into PT school, great! Now the next step is figuring out how to pay for it. PT school is not cheap, so I hope that this post can outline some of the most common payment options. I know money is typically a “taboo” topic, but I want to be as real as I can with y’all. I had to do a lot of research to figure out how I was going to pay for school, so I’d like to share my knowledge and findings with you guys as well!

Disclaimer: Keep in mind that I am in no way a financial advisor, and everyone’s financial situation is different. This should be a good starting part when it comes to figuring out how to pay for PT school, but please be sure to conduct your own research as well.

According to the CAPTE aggregate data, the average tuition rates per year for DPT programs for the 2018-2019 year were as follows:

• Public: $18,390
• Private: $37,014

As you can see, this is a lot of money, and this doesn’t even include your living expenses.

So what are your options?

Standard Loans

There are two types of loans: federal student loans and private student loans. Here is a chart that outlines the major differences between the two:

Federal Student Loans

These loans are funded by the federal government. The U.S. Department of Education is your lender. To receive federal loans, you must first fill out the Free Application for Federal Student Aid (FAFSA) form.

Direct Unsubsidized (Stafford) Loans: loans available to undergraduate and graduate students; there is no requirement to demonstrate financial need

• You are responsible for paying the interest (fixed at 5.28% for graduate students for the 2021-2022 academic year) on a Direct Unsubsidized Loan during all periods
• If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan)
• Graduate students can only receive up to $20,500 per year, and $138,000 cumulative in Direct Unsubsidized Loans (this includes undergraduate loans)
• The current fee on Direct Unsubsidized Loans is 1.057%

Grad PLUS Loans: loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid

• The U.S. Department of Education is your lender
• You must not have an adverse credit history
• The maximum loan amount is the cost of attendance (determined by the school) minus any other financial aid received. The cost of attendance usually includes:
  • Tuition and fees
  • Room and board
  • Books
  • Supplies
  • Equipment
  • Transportation
  • Miscellaneous personal expenses
• The interest rate is fixed at 6.28% for the 2021-2022 academic year
• The interest on a Grad PLUS Loan starts to add up (accrue) from the date the loan is first disbursed. If you don’t pay the interest as it accrues, it will be capitalized (added to the loan balance), increasing the amount of the loan.
• The current fee on Grad PLUS Loans is 4.228%. Fees are deducted from each loan disbursement. You can ask the college financial aid office to increase the loan amount to cover the fees, up to the annual loan limit.
• Loan payments can be deferred while you are enrolled on at least a half-time basis at an accredited graduate school or professional school
• A cosigner is not required

Private Student Loans

• These are non-federal loans, made by a lender such as a bank, credit union, state agency, or a school. Here is a chart with NerdWallet’s 6 Best lenders for 2018:

Each lender will vary, and you’d have to visit their website for specific terms and conditions.

When it comes to loans, many students borrow Direct Subsidized Loans up to the yearly limit ($20,500), and then cover the remainder of their expenses with the Grad PLUS Loan. Every student is different of course, but this is what seems to be the “typical” thing to do.

Loan Forgiveness Programs

These types of programs will forgive your loans in exchange for some type of service. These programs usually vary by state, so be sure to look into this for the state you plan on working on.

The Public Service Loan Forgiveness (PSLF) Program: this program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer

• Qualifying employment for the PSLF Program is not about the specific job that you do for your employer; rather, it is about who your employer is; employment with the following types of organizations qualifies for PSLF:
  • Government organizations at any level (federal, state, local, or tribal)
  • Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code
  • Other types of not-for-profit organizations that are not tax-exempt under Section 501(c)(3) of the Internal Revenue Code, if their primary purpose is to provide certain types of qualify public services
  • Serving as a full-time AmeriCorps or Peace Corps volunteer also counts as qualifying employment for the PSLF Program

Scholarships

Scholarships are essentially “free” money. I will try to list the most common scholarships that I am familiar with. The is by no means an all-inclusive list. There are lots of scholarships out there, you just have to find them!

Program-specific Scholarships

These will be scholarships that your PT program will offer directly; scholarship opportunities will usually be outlined on your program’s website.

Outside Scholarships

These will be scholarships that are found outside of your PT program.

• US Department of Veteran Affairs Health Professions Scholarship Program (HPSP) 
  • This scholarship is specifically for students enrolled in graduate health professions programs (PT, nursing, and PA); this is a full scholarship that covers tuition and fees as well as providing a monthly stipend; eligible applicants must be enrolled in, or be unconditionally accepted for enrollment in, an academic program that prepares the applicant to meet the VA Qualification Standards for employment in occupational field for which the scholarship is awarded; after completion of your education, you must serve as a full-time clinical VA employee for a minimum of 2 years
• AMBUCS Scholarship Program
  • Students must be US citizens accepted in a graduate-level program that is accredited by the appropriate therapy profession authority in physical therapy, occupational therapy, speech language pathology, or hearing audiology; awards are based on financial need, commitment to local community, character for compassion and integrity, and career objectives
  • Over $150,000 is awarded annually with individual awards ranging from $500 to $1,500; there is one two-year award in the amount of $6,000; award monies are deposited into the student’s credit account with the financial aid office of the educational institution
• Click here to see the APTA’s list of scholarships, awards, and grants

Graduate Assistantships

Many programs have graduate assistantships. As a graduate assistant, you’d probably perform various duties to assist the staff and faculty of your program. This may include research, clerical work, tours, being a TA, etc. This is similar to a “work-study” position, and you may receive a living stipend, or be paid hourly. You’ll typically have to work a minimum amount of hours per week, and may have a set wage. Check your program’s website to see if they offer any of these positions.

Here is an example of what a typical financial aid package may look like:

So now that you know your options for paying for school, here is how the financial aid process will go:

How It Works

(Note: this will only be referring to federal aid)

1. Fill out your FAFSA ASAP! This will qualify you for federal aid.
2. Your program should have a set cost of attendance that will include: tuition and fees, room and board, books, supplies, equipment, transportation, miscellaneous personal expenses, etc. You will automatically be offered a Direct Unsubsidized (Stafford) loan of $20,500. Based on your cost of attendance, you will then be offered a Grad PLUS loan of whatever your cost of attendance is after the $20,500  Stafford loan is subtracted (like in the example above). You have the option to take the full amount of your offered aid, or only a portion of it.
3. If you have received any other aid (i.e. outside scholarships), you will have to report it to your program.
4. Once you have accepted your aid, you will have to complete Entrance Counseling,  sign Master Promissory Notes, other paperwork, etc.
5. You will receive your financial aid in “disbursements”, which will usually be once at the beginning of each session/semester. For example, I will receive 3 financial aid disbursements per year, as my program has Fall, Spring, and Summer sessions. Your program will automatically take out a portion for tuition and fees, and the rest will be deposited directly into your bank account. You will then be able to spend it on the rest of your cost of attendance (the things I mentioned in step 2).
6. Graduate and start paying on your loans, yay!

General Tips

• Do your research! You want to be knowledgeable and aware of what you are getting yourself into. Debt is a real thing that you are responsible for, so take this seriously.
• I would suggest drafting a standard scholarship essay that you can use for any scholarships you want to apply for. This will save you a lot of time, and you can always edit and tailor the essay to the scholarship’s prompt.
• Plan ahead! Start saving money ASAP!
• Check to see if your state offers any state-specific scholarships or grants. Most states do. You never know what you may find!
• Sit down and create a budget. Figure out how much you think you will spend on food, housing, transportation, etc. a month. Once your budget is created, stick to it!
• Don’t borrow more than you actually need. Your school’s estimated cost of attendance will probably be higher than what you will realistically need. You never have to accept the full amount that is offered to you. If you end up borrowing too much, you can always give it back instead of allowing it to accrue interest. If you end up needing to request more money later in the semester, you can!

If you know of any other scholarships, loan forgiveness programs, grants, etc., please let me know! I’d like to keep this post as up-to-date as possible, so I will add to it periodically if needed. Hope this helped you see your options for paying for PT school!

(Most of this information was found on the Federal Student Aid Website)