Finances

I received a letter from one of my readers this evening. First of all, I was very pleased to see that people are reading my blog! (To anyone else who is reading, I really appreciate the feedback and I would be happy to answer any of other questions in my blog!) Second, I thought his concern was a big enough deal that I should address it in here so others can also benefit.

The question was about financial aid, tuition, and debt. Scary subjects for any student, but especially one who has already completed a four-year degree, pre-requisites, and now a doctorate.... Let's try to address these topics one at a time...

Tuition
In the time I have been at school, tuition has risen twice--once for each fiscal year. Unfortunately, these changes did not come with loan amount increases, so the amount of money given for living expenses has decreased proportionately to the tuition increase. This being said, the tuition has risen less than a thousand dollars per quarter since I started... so compared to the overall amount I am spending on my education, this increase seems nearly statistically insignificant.

Loans
Luckily, loans are easy to come by in graduate school and especially at Palmer. Palmer has an unprecedented default rate of less than 1% so loan approval is a cinch. Our loans come in three forms: Federal Stafford Subsidized (no interest accrued while in school) Federal Stafford Unsubsidized (interest accrued while in school) and Grad Plus (interest at a slightly higher rate accrued while in school). Most people take at least the Federal Subsidized, and many take all three. This money completely covers tuition for all 13 quarters and covers around $6,000 of living expenses per quarter (assuming you took the full package of all three loans.) Additionally, special loans can be taken to cover the cost of taking National Board Exams, Electives, and Clinic Abroad Trips.

Debt... scared yet?
While thinking about a total sum of over $100,000, it's easy to start feeling nauseated. However, before you stroke out, let's talk about the facts. This debt is sizable, but it is given to us so freely because of our major earning potential. I went searching for some statistics on this "potential" and found the following on the U.S. Bureau of Labor Statistics Website: "In 2009, the mean salary for chiropractors was $94,454." This is quite encouraging, and personally, I know a lot of chiropractors who make much more than this. For chiropractors, as with many other small business owners, income is largely based on the number of years in practice. So at first, things will be more challenging and later, life will be easier.

After School Options
In order to pay down this enormous amount of debt, you'll have to work (obviously) but you have lots of options of how to do that. In the past, most chiropractic physicians went into solo practice right away. While this has definite advantages, it also comes with a huge price tag of rent, equipment, and staff. In order to avoid this, many new D.C.s are becoming Associates in other doctors' offices for a few years after graduation. This gives these new doctors a chance to start making money (usually on a salaried basis) and hone their clinical skills before they go out on their own. Another option is to become an independent contractor. In this situation, the doctor would pay a percentage of all earnings to the owner of the clinic to pay for overhead and use of staff/equipment. This situation is generally considered more advantageous since seeing more patients means more money, although the doctor is usually responsible for getting his/her own patients through marketing/advertising. Additionally, there is an increasing demand for chiropractors in all sorts of salaried positions including on military bases, as part of multidisciplinary practices, and as researchers in universities.

The Bottom Line
Despite the enormity of the debt we are incurring, I feel confident that I will be able to pay it back with the education I have been given. I also feel that this is a fantastic time to be a part of this exciting profession. The public interest in holistic health care has never been so high and changes to our scope are making our position in health care policy all the more important. When you graduate from Palmer Florida you can expect to be nervous about money--I think this is normal--but if you stick to what you're good at, I have no doubt that you will be able to pay back your debt and within a few years live the lifestyle you've dreamed of.

Cheers!