Abstract:

The accumulation of student loans among doctoral students in clinical psychology has swiftly risen to unprecedented levels in recent years, while at the same time wages have been stagnant or declining for practicing psychologists. High loan repayment obligations, in conjunction with a prior lack of qualitative data to help inform students' financial and professional decision-making and planning, suggest risks to the well being of current and future practitioners. Moreover, the effects of loan repayment are likely to be felt by clinicians during the early career phase of their professional development, a time that Fitzgerald (2004) asserts is characterized by uncertainty, transition, and professional identity development. The foregoing trends also may diminish the standing and appeal of clinical psychology relative to other mental health disciplines, and could undermine access to psychologists among underserved, lower income populations.

Semi-structured interviews with ten highly indebted early career psychologists revealed four primary categories consisting of thirteen themes and two related findings. The participants endorsed an acute experience of financial strain during the period of career launch, which is here defined as the period spanning the conclusion of predoctoral training through the beginning months following licensure. Their experience of financial strain coincided with numerous personal and professional sacrifices, including many hidden costs of loan repayment. Of note, several reported an inability to work with underserved populations due to repayment obligations and low wages. Many participants expressed doubts about the financial practicality of their doctoral degree and corollary dissatisfactions with the current economic market for psychologists in practice. Several participants also endorsed experiences of personal growth, which fostered enhanced resilience and acceptance for their financial situation, its attendant personal and professional restrictions, and related stressors.

Results of the present study suggest the need for thorough financial planning workshops and advisement for students by financial aid departments, increased levels of grants and scholarships for clinical psychology doctoral students, and the incorporation of business management and personal finance coursework within clinical psychology training programs. The study also may helpfully inform the decision-making and self-care of prospective and current students, as well as highly indebted licensed psychologists.