Evaluating the Changing Financial Burdens for Graduating Pharmacists

By Mattingly, T. Joseph; Ulbrich, Timothy R. | American Journal of Pharmaceutical Education, September 2017 | Go to article overview

Evaluating the Changing Financial Burdens for Graduating Pharmacists


Mattingly, T. Joseph, Ulbrich, Timothy R., American Journal of Pharmaceutical Education


Objective. To compare new practitioners in 2009 and 2014 by modeling net income from available salary, expenditure, and student loan data.

Methods. A Monte Carlo simulation with probabilistic sensitivity analysis was conducted to model net income for graduating pharmacists in 2009 and 2014. Mean and standard deviations were recorded for each model parameter. Student t-tests were used to compare the mean differences between 2009 and 2014 cohorts.

Results. Pharmacist salary and disposable income were higher on average in 2014 compared with 2009. Consumer expenditures were higher in 2014, offsetting the higher salary resulting in a 2014 discretionary income that was less than in 2009 [95% CI: -$2,336, -$1,587]. Net income decreased from 2009 to 2014 for all pharmacy school types.

Conclusion. Regardless of loan payment strategy, net incomes for pharmacists graduating from public and private institutions were less in 2014 compared with 2009.

Keywords: student debt, new practitioners, personal finance

INTRODUCTION

The cost of attending pharmacy school in the United States and the debt incurred by new practitioners has risen substantially in recent years, providing some concern for many stakeholders.1 Combined with concerns surrounding job opportunities for new graduates, the pressure of growing student debt has sounded an alarm in the form of editorials and online discussion boards in the pharmacist community. (2-4) According to the Bureau of Labor and Statistics (BLS), the average annual salary for a pharmacist increased from $106,630 in 2009 to $118,470 in 2014. (5) At the same time, the average amount borrowed for students graduating from pharmacy school increased from $101,892 in 2009 to $144,718 in 2014. (6,7) The percentage of pharmacy graduates reporting that they had to borrow money to help pay for college expenses ranged from 87% to 91% between the years 2009 and 2014. Looking further at the amount borrowed by pharmacy students attending public or private schools, those graduating from public schools reported borrowinganaverage amount of $85,410 in 2009 and $120,060 in 2014 compared to those graduating from private schools reporting an average amount borrowed of $119,784 in 2009 and $166,534 in 2014. (6,7) Between 2009 and 2014, this 42.0% increase in the average student loan debt in pharmacy education (all schools combined) was greater than that in other health professions including medicine ($156,456 in 2009 to $176,348 in 2014; 12.7% increase) and dentistry ($189,678 in 2009 to $247,227 in 2014; 30.3% increase). (8-10)

Similar trends regarding the rise in student loan debt in the US, regardless of the occupation, have been well-documented. Data from The Institute for College Access & Success note that approximately 70% of college graduates have student loan debt with an average amount owed of $28,950. (11) The amount owed grew from $18,550 in 2004 and more than doubled the rate of inflation over that time period. (11) Similarly, a study conducted by Harris Poll on behalf of NerdWallet in 2015 found the average student loan debt for those households with that type of debt was $48,172. Furthermore, it was estimated to be $1.23 trillion owed in student loans by

US consumers. (12)

While pharmacist salaries have increased at a rate similar to that of tuition increases as documented by Cain and colleagues, (1) the annual salary of a pharmacist continues to be less in recent years in relation to overall student indebtedness. For example, in 2015, the average pharmacist salary was $119,270 with an average amount borrowed for a graduate in the class of 2015 of $149,320. (5,13) This salary to debt ratio of .80 is lower than that in 2011 (.98), the first year the ratio fell below 1.0. (1) The complexity of this upward trend regarding student debt spans from student-level issues such as loan eligibility, interest rates, student personal finance knowledge, to pharmacy school-level factors such as facilities and increased administrative costs to educate students. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Evaluating the Changing Financial Burdens for Graduating Pharmacists
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.