Podcast Summary: Private Practice Startup Podcast

Episode 116 - How to Handle Six-Figure Student Loans as a Therapist

Hosts: Dr. Kate Campbell & Katie Lemieux
Guest: Travis Hornsby, CFA (Chartered Financial Analyst), Founder of Student Loan Planner
Date: December 15, 2018

Overview

This episode dives into one of the most pressing issues facing mental health professionals: managing six-figure student loans. Travis Hornsby, a financial expert and founder of Student Loan Planner, shares vital strategies, actionable insights, and encouragement specifically tailored for therapists. The discussion covers concrete repayment options for both community mental health workers and those pursuing or starting private practice, and how to align loan strategies with broader career and life goals.

Key Discussion Points & Insights

Travis’s Background & Why He Specializes in Student Loan Planning

• From Wall Street to Counseling Professionals (05:30-06:45):
  Travis left a lucrative bond trading career to find more meaning, inspired by helping his wife (a physician) with her student loans. He discovered great need and satisfaction in helping professionals move from financial insecurity to stability.
• Motivation:
  Travis was motivated not only by personal reasons but also by real-world feedback, creating online models that quickly helped many.

Student Loan Realities for Therapists

Typical Debt & Income

• Student Loan Amounts (10:01-11:24):
  • Many therapists face debts of $100,000+ for master’s and PhD programs.
  • Clinicians start out on low salaries: entry-level in community mental health often ranges from $38,000 to $55,000.
• Quote:

  "For PhD [students], it's well over 100 grand to get a PhD. And that's really costly when you're starting out as a clinician." – Dr. Kate Campbell (11:21)

Public Service Loan Forgiveness (PSLF)

Who Qualifies & How It Works (12:01-16:13)

• PSLF Program Explained:
  • Available to those working full-time for government or non-profit organizations, including most community mental health settings.
  • Make payments based on income for 10 years (as little as ~$160/month), with the remaining balance forgiven tax-free afterwards.
  • Loan Types: Must have "Direct" federal loans (common post-2010, but check loan titles to confirm).
  • Plans: Must be on an income-driven plan (e.g., Revised Pay As You Earn, aka REPAYE).
• Quote:

  "This $40,000 income person, even though they have $100,000 of student loan debt, could be paying like $160 a month... At the end of those 10 years, any remaining balance... is forgiven tax-free." – Travis Hornsby (12:01-13:41)

• Pitfall Warning:
  • Payments on plans not income-driven (e.g., standard or extended plans) do NOT qualify for loan forgiveness, even if large.

Private Practice & Student Loans

Options and Strategies When PSLF Isn’t Available

• Private Practice Loan Repayment (& Income Ramp-Up) (16:56-21:46):
  • For those starting in private practice, federal income-driven plans (especially REPAYE) are still valuable.
  • Early years often mean low income: REPAYE reduces payments and subsidizes interest, providing cashflow flexibility.
  • When income stabilizes and increases, consider refinancing with a private lender for a lower interest rate (possible after establishing higher, consistent income).
  • Strategic Refinancing:
    • Private refinancing only makes sense when long-term, income is predictable, and PSLF isn’t applicable.
  • Quote:

    "While you're trying to be successful in private practice, pay as little as possible, try to save as much as possible, and have a lot of liquidity for those unexpected events." – Travis Hornsby (21:33)

Protecting Lenders & Borrowers

• Student loan debt is nearly impossible to discharge in bankruptcy (22:04-23:47).
  • Lenders are protected, which allows lower rates for well-qualified borrowers.
  • Federal loans price risk equally for all, so high earners benefit most from refinancing after their income ramps up.

Student Loan Planner’s Services

• What Travis Offers (23:47-25:42):
  • Flat-fee service (typically $300-$600 for one-time personalized plan).
  • Website links for free refinancing bonuses.
  • Frequent "second-opinion" consults to align financial and life goals.
  • Quote:

    "Our site also has those refinancing bonuses... ask us how good the deal is—that's free to do." – Travis Hornsby (24:42)

Emotional & Psychological Side of Debt for Therapists

• Financial Shame in Helping Professions (02:28-02:56):
  Therapists often feel shame around money, feeling it contradicts their values of helping others.
• Encouragement:
  Travis stresses that managing debt strategically is a path to living the life and running the practice you truly want.

Notable Quotes & Memorable Moments

• On Meaningful Work:

  "It's a lot more rewarding to see somebody who goes from a place of complete financial insecurity to the path of being on the road to financial independence and security for their family." – Travis Hornsby (05:30)

• On PSLF:

  "You pay based on your income. And at the end of those 10 years, any remaining balance... is forgiven tax free." – Travis Hornsby (12:04)

• On First Years in Private Practice:

  "This program that I'm suggesting is actually something that's perfectly built for that kind of ramp up." – Travis Hornsby (19:37)

• On Big-Picture Planning:

  "Make sure that their student loan strategy is matching what they want for their life strategy. That's one of the big mismatches that we see a lot." – Travis Hornsby (23:57)

Timestamps for Important Segments

| Timestamp | Segment/Topic | |-----------|---------------------------------------------------------------------| | 05:30 | Travis introduces his background & shift from Wall Street | | 10:01 | Discussion of typical debts and incomes for therapists | | 12:01 | Public Service Loan Forgiveness (PSLF) explained | | 16:13 | Requirements and eligibility for PSLF, common pitfalls | | 16:56 | Private practice strategy: REPAYE, income fluctuation, refinancing | | 21:46 | Interest subsidies and refinancing details | | 23:47 | How Student Loan Planner helps clients | | 25:49 | Emphasis on value-aligned planning and encouragement | | 28:17 | Description of Travis’s free loan repayment quiz |

Resources & How to Connect

• Travis Hornsby’s Email: travis@studentloanplanner.com
• Free Student Loan Quiz: Link available on episode show notes; helps assess if you should refinance or seek forgiveness.
• Student Loan Planner: https://www.studentloanplanner.com/

Overall Tone

Friendly, empowering, and empathetic. Kate and Katie create a supportive space, and Travis demystifies complex financial topics in a down-to-earth and nonjudgmental way, offering hope and actionable paths.

Final Takeaway

Therapists with high student loan debt have options, and the right repayment strategy can dramatically lower costs and financial stress. Whether in community health or private practice, understanding and optimizing federal repayment options, PSLF, and private refinancing opens doors to financial freedom and professional fulfillment. Seeking expert guidance can save thousands and align your debt strategy with your long-term goals.

“Managing debt isn’t about shame—it’s about giving yourself the flexibility to do the meaningful work you’re called to, without financial fear.”
— Inspired by Travis Hornsby’s message

Next Episode Teaser:
Kate will discuss her journey to building the "perfect" group practice. If you're considering or starting your own, tune in for that firsthand insight!