Determining the Lifetime Return on Investment of a Career in Physical Therapy or Occupational Therapy – An Educational and Financial Analysis

Abstract

Background: In the United States, student loan debt has been a subject for national and political discussion. Professional associations have expressed concern and taken action in ways to combat high levels of student loan debt. What has not been discussed is the lifetime earnings, debt, and retirement (or loss thereof) which would produce an overall lifetime return on investment (ROI) for the graduate and associate’s degree levels of careers in physical therapy and occupational therapy. Method: A literature review on student loan debt in the United States was performed. Specifically, statistics were obtained from various sources relative to the fields of physical and occupational therapy. Salaries and salary projections were obtained for both graduate and associate’s/technical degree levels in physical and occupational therapy. Data was calculated to obtain overall cost of education (tuition plus debt-based interest), lifetime earnings of salary, and available retirement contributions when replacing contributions with potential loan repayment. Results: Literature review showed that while value can only be determined subjectively, current career projections and cost of education for obtaining graduate degrees in physical and occupational therapy have an overall negative return on investment in relation to lifetime earnings. By comparison, the associate’s degree level of training provides for a relatively high lifetime earning and high return on investment when factoring in a debt-to-income ratio and lifetime potential retirement earnings. Conclusion: Value can only be determined by the one pursuing a degree or career goal. However, numeric and financial data shows that the lifetime earnings and overall investment in a graduate career in physical therapy and occupational therapy is negative when compared to the associate’s degree level. Limitations: Limitations of this review are the lack of consideration of loan forgiveness, as well as grant funding from research groups, Pell grants, and other methods of loan payment or repayment. Also not taken into account for these calculations are the career burnout rates for physical and occupational therapy professionals.