The goal of this article is to provide you with full awareness of the costs of PA school, as well as give you tips in order to reduce the cost and pay off your debt as quickly as possible. Let’s jump right in...
COST OF PA SCHOOL
Let’s start off with how much you should expect to pay for your education. There are two types of graduate schools: public and private. Public schools generally have a reduced tuition cost for applicants who live in the same state as the public school they are applying to. This is because you are already paying taxes to the state which is where the funding of these public schools come from. You can still attend public schools if you don’t live in that state, but you will have to pay the standard tuition rate (which is usually around the same as what private schools charge). Private schools are not associated with the state government at all and therefore offer no reduced tuition for in-state applicants. Below, I will list the average cost of tuition for these 3 types of schools.
Average Tuition for Public (In-State Applicant): $50,289
Average Tuition for Public (Out-of-State Applicant): $88,677
Average Tuition for Private: $91,639
*Pulled from www.thepalife.com*
Note, this does not include program fees (which are typically $5,000 - $6,000) or the cost of food and housing. These are other expenses you must plan for on top of your tuition. The U.S. Bureau of Labor Statistics records the average cost of groceries to be: $387 per month. This works out to be $10,449 for the duration of a 27-month PA Program. Likewise, the average rent for a single bedroom apartment is: $1,098 per month. This comes out to $29,646 for 27-months of rent. I think it would be wise to plan on spending anywhere between $100,000 to $150,000 for all aspects of your 27-month education. It may be less than that, but it is better to plan for the worst, so that you don’t get burnt by unexpected expenses. Another note: I understand every person and every city will have a different cost of living, but the point of these numbers is to illustrate that you need to be prepared for the additional costs of PA school outside of just the tuition.
SCHOLARSHIPS
One option to help cut down on the cost of tuition is through scholarships. These can range anywhere from $1,000 all the way up to a full-ride scholarship. A lot of these scholarships are open to anyone and everyone and only require a standardized application. Other larger scholarships come with a few caveats. For example, you may have to be a member of an accredited organization such as the AAPA. Some scholarships are offered to students who have already had a clinical rotation in a given specialty and/or plan to pursue a career in that specialty. One of the big full-ride scholarships is with the National Health Service Corp which requires you to serve in a medically underserved community for 2 years after graduation. I will link an article that does a very good job of highlighting the main scholarship opportunities for PA students and details any caveats of accepting the scholarship.
WORK AND SAVE BEFORE YOU START
As you should already be aware, PA School requires lots of clinical experience prior to application. A good strategy is to budget the money you earn from your clinical job and save up a stash of money to at least help cover your food and/or housing for PA School. That way you don’t have to take out as many loans (and thus won’t pay interest on this part of your expenses). Even if you only save up a couple thousand, you are getting in the mindset of being smart with your money and budgeting your paychecks in order to pay off your future loans. It’s up to you whether or not you work throughout PA School, but I think it is generally advised not to because of the crazy workload you will have from school. The small amount of money you would make working part-time is oftentimes not worth the added stress and lack of sleep, especially when you will be making a significantly higher salary upon graduation. Like I mentioned, it is the mindset that is important because you need to have the self-discipline to budget your $90,000 salary the same way as you would budget your $13/hr salary.
FINANCING YOUR EDUCATION AND TAKING OUT LOANS
Taking out a large loan is never fun so the plan here is to find the cheapest interest rate and pay it off as quickly as possible. For most people, this means filling out the FAFSA in order to receive an offer on federal student loans. This is typically the cheapest and safest option to finance your education. Your package will probably include a mix of loans with some of them being subsidized and others unsubsidized. Basically the difference between these two types of loans is that subsidized loans do not accrue interest while you are in school (it only begins once you graduate), while unsubsidized loans accrue interest as soon as the money is borrowed. Private loans are also an option, but make sure you consult with a professional before agreeing to a private loan because there are a lot of factors that can come back to bite you if you aren’t fully aware of what you are agreeing to. Another option I thought I would mention is that theoretically you could try and borrow the money from family/extended family who may charge no interest at all on the repayment. However, I generally wouldn’t recommend this because it can cause a lot of issues if for some reason you drop out, struggle to find a job, there is a family emergency, etc. It causes your family lender to become unnecessarily invested in your education and finances, which can lead to conflict.
PAYING OFF YOUR LOANS AFTER GRADUATION
Here we are, 27-months later, with your PA-C credentials and $100,000 in debt. This is where you have to choose how you want to tackle these loans. Some people prefer to pay the minimum over 15-20 years and only end up being debt-free by their 40s (assuming you transition straight from undergrad to PA school). I would personally urge you to pay off this debt as quickly as possible and clear your student debts within the first 5 years of graduation. The way I plan to live after graduation is similar to how medical residents are forced to live. Even though my salary will likely be $80,000 or higher upon graduation, I plan to live as if I am a resident making a salary of $40,000. I will essentially pretend my paycheck is half of what it is and immediately transition the other half of my salary into paying off my loans. This means you likely won’t be buying a new car or mortgaging a nice house your first few years out of school, but you are setting yourself up for future financial stability. By paying off your loans quickly, you will save tens of thousands of dollars in interest. Just think if you are having to pay 7% interest on your loan balance for 15-20 years. That’s a lot of extra money to be paying the lender. I hope to pay off all my loans within 3 years by aggressively saving and directing my paycheck towards those loans.
One method many people point to is the Dave Ramsey Snowball Method. I will post a short excerpt from his website that explains the snowball method:
“Step 1: List your debts from smallest to largest regardless of interest rate.
Step 2: Make minimum payments on all your debts except the smallest.
Step 3: Pay as much as possible on your smallest debt.
Step 4: Repeat until each debt is paid in full.
Now, before you start arguing about the interest rates, hear us out. If your largest debt has the largest interest rate, it’s going to be a long time before you start to see a dent in that crazy balance of yours. But when you stick to the plan (without worrying about interest rates), you’re going to be jumping up and down when you pay off that smallest debt super quick. That excitement is what’s going to motivate you to keep working hard—all the way to that debt-free finish line.”
CONCLUSION
I know this is a lot of information but it is important to consider these things before you begin PA School, that way you know what you are getting yourself into, and can start making a plan as early as possible. I would encourage you to do a little of your own research and start to personalize a plan for yourself. There are a lot of amazing resources and websites out there to help guide you financially as your work to become a practicing PA. I hope this article at least helped you form a general opinion on the subject and introduce you to some basic aspects to consider as you continue on your journey. Best of luck!