I am a school psychologist making $75k per year. Due to my license in my state, my salary is capped at ~3% (inflation) raises every year. I am not happy with this salary cap and being limited to working for a school district. I am thinking about going back to school to pursue a doctorate in Clinical Psychology. I am trying to weigh the cost/benefit of taking advantage of PSLF vs. pausing payments to go back to school.
Student loan details:
- $47,000 is principal and about $2,000 in interest has accrued. Average interest rate of 6.2%.
- I have made 31 qualifying payments for PSLF. Minimum payment is $230.
- FSA estimates that with PSLF under the SAVE plan, I will pay a total of $34k with an estimated forgiveness date of July, 2031 and $36k forgiven! This is without pausing payments to go back to school.
- I have no intention of taking out more student loans; I will only get my doctorate if it’s fully funded.
Why I want a doctorate in clinical:
- A clinical psychologist has a MUCH higher salary ceiling and flexibility because they can work in private practice, other clinics, etc. Very high incomes are not guaranteed, but the demand for private evaluations in my area is extremely high, with year-long waitlists, etc. I could also still work in public service and continue making PSLF payments.
- Doctorate + post doc should take 3-5 years; I have already obtained many of the required credits through my Masters and EdS.
- Apparently in some states I could give evaluations in a private setting as well as a school setting with my current license, but that is not the case in MY state.
Current financial picture:
- Take home: $4,600 per month after car/life/medical insurance. Expenses: $2700 per month.
- Retirement: $25k in 401k with 10% monthly employer contribution (no match-raw contribution), Roth IRA: $3,700 and I contribute $30 per month.
- Savings: $50k in a money market fund (SWVXX at ~5.2%) and I put in $1,500 per month.
- No other debts.
original posted by Dull_Kangaroo_968 to r/personalfinance on Sat, 02 Mar 2024 21:07:17 GMT.