An online survey of doctoral students in psychology across the U.S. has shown that their annual stipends are not keeping pace with the rising cost of living. More than 80% of these students reported taking on additional debt to cover their living expenses. The survey also found that students who were more concerned about their financial situation were more likely to postpone getting married or having children and were also more likely to forego medical or mental health care. The paper was published in the Journal of Clinical Psychology.
The cost of higher education in the United States has risen dramatically over the past several decades. Since the 1980s, tuition and fees at both public and private colleges and universities have increased by as much as 250%, which is a rate far exceeding inflation. For the 2021-2022 academic year, the average cost of tuition and fees was $38,185 at private colleges and $10,338 for state residents at public colleges.
This rise in costs has been driven by factors such as increased demand for higher education, reductions in state funding for public institutions, growing administrative expenses, and investments in facilities and technology. The escalating cost of higher education has led to a significant increase in student loan debt, which has become a major financial burden for many Americans.
In 2021, total student loan debt in the U.S. was estimated to be over $1.7 trillion. With around 44 million borrowers, the average debt is around $38,000 per borrower. This rising cost of higher education and the associated debt has sparked an ongoing debate about the value of a university degree and the need to reform the higher education system.
Research focusing on graduate psychology students has revealed that their debt levels have escalated from between $20,000-$60,000 around the turn of the millennium to recent estimates exceeding $122,000 and $231,000 for PhD and PsyD students, respectively. This level of debt is in stark contrast to the median annual salary for clinical psychologists, which stands at $90,000.
Study author Erica Szkody and her colleagues wanted to further explore the financial stress and debt situations of doctoral students in clinical psychology. They were interested in understanding the sources of funding and financial support these students receive, how they manage their finances, and the impact of financial stress on their future plans and mental health. They sought detailed insights through an online survey.
The survey included 912 doctoral students from scientist-practitioner and clinical scientist psychology graduate programs in the U.S., with 82% identifying as female and 73% as White. The participants represented a diverse geographical distribution across the country.
The survey inquired about the students’ incomes, including stipends, part-time employment, savings, and other sources of income, as well as their expenses, such as daily living costs, work and education-related expenditures, and their level of debt. It also explored issues related to financial stress, including delays in achieving life milestones due to financial concerns, living arrangements, and assessments related to financial hardship, depression, anxiety, substance abuse, sleep patterns, and sleep difficulties.
The findings indicated that half of the students received stipends covering all 12 months of the year, while 39% received support for 9 months. Despite variations in funding during the summer, over half of the participants reported some form of support. Savings among students varied significantly, with 50% reporting up to $5,000 in savings and 15% having none. Financial support from friends, family, partners, or child support was crucial for 72% of the students, especially during the summer months.
Despite program restrictions on part-time employment, 28% of students reported having part-time jobs at some point. Only 5% had no undergraduate student loan debt, and 19% had not taken out graduate student loans. The average loan size reported was around $77,000, with some students reporting debts as high as $500,000.
Most students shared housing with roommates, family members, or friends, with 86% renting homes or apartments. The average annual expenditure for students was approximately $17,500, against an average reported income of about $21,500, leaving them with around $4,000 in expendable pre-tax income. However, about 35% reported having no expendable income.
Approximately 43% of participants expressed significant stress about their financial debt, and 16% seriously considered discontinuing their doctoral studies due to financial difficulties. About half of the participants delayed life milestones due to financial concerns, most commonly postponing marriage, starting a family, having children, and participating in social activities.
Further analysis revealed that lower stipends, greater debt, and smaller savings were linked to higher financial stress and more time spent worrying about financial issues. Greater financial concerns were associated with higher levels of depression and anxiety, as well as reduced sleep quality.
“This study illustrates the inadequacy of current financial support for clinical psychology doctoral students,” the study authors concluded. “Most of the sample reported receiving a stipend that required them to take out significant loans during graduate school, which contributed to debt and financial stress.”
“We also now know that financial stress is related to symptoms of depression and anxiety, and poor sleep for clinical psychology doctoral students, as well as avoiding seeking proper health care, which makes financial stress in graduate school a topic of critical importance. University and program leadership are encouraged to advocate for increased financial support, as well as improve financial transparency and access to health care.”
The study sheds light on an important predicament current doctoral students face. However, it should be noted that study participants were exclusively students from clinical psychology programs that were members of the Council of University Directors of Clinical Psychology. Results might be somewhat different on students of other programs.
The paper, “Financial stress and debt in clinical psychology doctoral students,” was authored by Erica Szkody, Steven Hobaica, Sarah Owens, Jennifer Boland, Jason J. Washburn, and Debora Bell.
