What You Should Know:
- Almost 40% of physical therapists have an education debt of over $150,000, according to a new national survey, which highlights the need for industry reform.
- The survey, conducted by Luna, the leading provider of in-home outpatient physical therapy, sought to explore the financial situation of physical therapists and the status of their educational debt.
Understanding the Financial Plight of Physical Therapists in the Context of their Educational Debt
Of the 2,000 physical therapists surveyed, almost all (96%) took out loans for their education, and 42% had a loan balance of over $100,000.
The study highlights how supplemental earning opportunities can help physical therapists accelerate debt repayment. For example, at Luna, physical therapists can earn $35,000 in extra income per year with as little as 10 visits per week as a supplemental income to help pay off their debt.
“Our survey spotlights the profound economic challenges that physical therapists face; from large student loan debts, to persistent loan balances, and limited success with debt relief programs. We’re proud to have helped therapists pay down over $50,000,000 in debt via Luna’s supplemental earning opportunities,” said Palak Shah,co-founder and head of clinical operations at Luna.
Luna, with a network exceeding 3,000 therapists, operates in 55 metropolitan markets across 28 states. Through strategic alliances with AARP, Emory Healthcare, Providence, and Intermountain Healthcare, Luna’s in-home outpatient physical therapy service is accessible to over 190 million Americans. Based on data from the U.S. Bureau of Labor Statistics, the United States currently boasts around 264,000 licensed physical therapists with a median annual income of $91,000. The field of physical therapy is expected to experience accelerated growth compared to other professions, driven by an aging population and a heightened awareness of the advantages associated with physical therapy.
In the survey of physical therapists, 96% acknowledged resorting to loans or credit cards for financing their education in physical therapy. The resulting educational debts varied significantly:
– 38% carried debts surpassing $150,000
– 36% had debts ranging from $100,000 to $150,000
– 20% faced debts between $50,000 and $100,000
– 6% held debts at $50,000.
The survey also indicated substantial current loan balances among physical therapists:
– The average outstanding loan balance was $88,933
– 42% still grappled with balances equal to or exceeding $100,000.
Regarding debt relief, the survey disclosed that nearly half of physical therapists (44%) explored debt relief programs. However, a significant majority (73%) expressed dissatisfaction, perceiving these programs as either not very effective or not effective at all.
