Student Debt & Return on Investment of a Pharmacy Education
Student Debt & Return on Investment of a Pharmacy Education
Data were collected from a variety of sources and analyzed through several different measures. For comparison's sake, similar data for medical and dental education were also collected and analyzed. Pharmacy tuition data were obtained through the AACP Institutional Research website. Tuition throughout this paper is defined as the average first-year tuition and mandatory fees for all accredited pharmacy schools during the respective year. Medicine and dentistry tuition figures were obtained from National Center of Education Statistics.
Pharmacy student loan amounts were obtained through the AACP Institutional Research website in the annual AACP Graduating Student Survey Reports. Student loan amounts are reported as the average amount borrowed by respondents of the survey.
Median salaries and numbers of jobs for each occupation were obtained through a search of the United States Department of Labor Bureau of Labor Statistics Occupational Outlook Handbook website.
A Salary:Indebtedness Index (SII) was developed as a basic surrogate measure for potential return on investment for pharmacy, dental, and medical education. This index was used to determine if changes in tuition were concomitant with changes in salary. The SII was calculated by dividing the average salary for a year by the respective average indebtedness of the student.
For illustration purposes, student loan repayment schedules were provided for 3 different interest rate scenarios using the extended repayment plan (required for federal loans exceeding $30,000). Total cost of loans and minimum monthly payments were calculated for loans at 5%, 8%, and 11%. These interest rates were chosen to reflect a range of possible rates being paid. Total costs were calculated for a standard repayment plan (120 months) and an extended fixed repayment plan (300 months). Calculations were computed using the federal student loan comparison calculator.
Methods
Data were collected from a variety of sources and analyzed through several different measures. For comparison's sake, similar data for medical and dental education were also collected and analyzed. Pharmacy tuition data were obtained through the AACP Institutional Research website. Tuition throughout this paper is defined as the average first-year tuition and mandatory fees for all accredited pharmacy schools during the respective year. Medicine and dentistry tuition figures were obtained from National Center of Education Statistics.
Pharmacy student loan amounts were obtained through the AACP Institutional Research website in the annual AACP Graduating Student Survey Reports. Student loan amounts are reported as the average amount borrowed by respondents of the survey.
Median salaries and numbers of jobs for each occupation were obtained through a search of the United States Department of Labor Bureau of Labor Statistics Occupational Outlook Handbook website.
A Salary:Indebtedness Index (SII) was developed as a basic surrogate measure for potential return on investment for pharmacy, dental, and medical education. This index was used to determine if changes in tuition were concomitant with changes in salary. The SII was calculated by dividing the average salary for a year by the respective average indebtedness of the student.
For illustration purposes, student loan repayment schedules were provided for 3 different interest rate scenarios using the extended repayment plan (required for federal loans exceeding $30,000). Total cost of loans and minimum monthly payments were calculated for loans at 5%, 8%, and 11%. These interest rates were chosen to reflect a range of possible rates being paid. Total costs were calculated for a standard repayment plan (120 months) and an extended fixed repayment plan (300 months). Calculations were computed using the federal student loan comparison calculator.
