Making $100,000 per year has long been a marker of success and something that is strived for in society. This is no different for physical therapists.

With tuition costs continually increasing, especially for graduate level programs, student loan debt becomes more of an issue for new grad physical therapists with each passing year. We communicate with thousands of PT students and new grad PTs every year, and student loans are a major point of anxiety for almost all of them. These days, it’s rare to talk to a new grad PT who has less than $100,000 in student loan debt, with the average seeming to be in the $150,000-$200,000 range currently. With that amount of debt, it’s no wonder that the desire to make at least $100,000 per year is higher than ever in this cohort. A high salary realistically offers the only chance of being able to pay off that amount of student debt.

When I graduated from physical therapy school in 2015, I had just over $92,000 in student loans (and my wife and fellow PT, Whitney, had over $140,000). Initially, we had no idea how to approach the situation. The student loan forgiveness options were still very new to me, and I didn’t know if they would be a good fit. I just knew that I needed to earn a lot of money to be able to achieve a positive net worth as quickly as possible.

Here are three options that I considered as a new grad physical therapist that I knew would allow me to earn at least $100,000 per year.

Starting a Cash Pay Outpatient Clinic

As a new graduate from PT school, I was confident in my clinical skills. I spent a lot of time reading research and taking advanced courses, along with my normal classroom education and clinical internships, which put me in a position to feel comfortable treating and communicating with patients. I wanted to put those skills to use in the outpatient setting, but after looking at what outpatient clinics were paying in my area, I just couldn’t go the traditional route. The thought of trying to pay off $92,000 of student loans on a $65,000/year salary was terrifying to me, especially knowing that many of the therapists in those positions were working 45 hours per week or more. This led me to start researching creating my own cash pay physical therapy clinic.

With a cash pay clinic, it would be possible to see less patients and make more money. Who wouldn’t want that, right? At the time though, I had no experience with starting or running a business, and the idea was intimidating. I also hadn’t seen any other new grads who had tried something like this, much less any that had done it successfully, with gave me pause.

Ultimately, I decided not to go this route, but over the past nine years since I graduated, there are a lot more resources available online that make the process less daunting to start your own cash pay PT clinic. There are also many new grad PTs starting and successfully running cash pay clinics making $100,000 per year or more that you can find on social media for encouragement. For any new grad who feels confident with their clinical skills and wants to work in the outpatient setting, starting your own cash pay practice is a clear, although not simple, path to earning $100,000 per year or more.

Working PRN Home Health

I had no experience with home health when I graduated from PT school, and in hindsight this was a mistake. In school I thought that I was sure I wanted to always be an outpatient physical therapist, so I never really considered trying to get one of my clinicals in the home health setting. When I graduated though, I quickly realized that working in home health would pay much better than outpatient, and that I should have given myself a chance to learn more about this setting while in school.

Depending on your state, there are some full time, permanent home health positions paying over $100,000 per year that are willing to assist and train new graduates. The need for physical therapists in the home health setting is very high, so there are often lots of options with great pay.

For home health, I think the biggest opportunity to earn the most money is in putting together multiple PRN positions to create your own full time job. Home health PRN positions will usually pay a flat rate per visit that varies based on the type of visit (start of care, evaluation, treatment, reassessment, or discharge), and the PRN rates are usually higher than what’s offered to the full time staff. The rates for these visits depend on the area and the need, but it’s not uncommon to be able to do five treatments per day and make $400-$500/day. Substitute in a couple evaluations or a start of care, and you can earn even more. Picking up 2-3 PRN home health jobs in your area and working full time hours can be an easy way to earn over $100,000/year as a new grad physical therapist.

Taking Travel Therapy Contracts

Last but not least is the decision that I ultimately made coming out of PT school, which is to take travel physical therapy contracts. A big reason that I chose Travel PT was to make as much money as possible as a new grad to put myself in a good financial position, but there were other things that drew me to it as well. I’d never lived more than an hour away from my hometown, and I had done little exploring more than a state or two away. Being able to try out different areas of the country to see if there was somewhere else that would be a better place for me to settle down long term was very enticing. Also getting to try out different settings to break up the monotony sounded better than being locked into the same clinic for multiple years.

In my first year as a travel therapist, I made almost $100,000 in TAKE HOME pay (after taxes)! That would be the equivalent of earning over $130,000/year (gross pay) in a salaried permanent position. If you’re unfamiliar with how travel therapy pay works, this article explains it in depth. This was way more than I had expected to make my first year out of school. The higher income allowed me to save $100,000 in my first year and a half after graduation, enough to pay off my student loans completely had I chosen to go that route (however I decided to take advantage of income driven repayment options and focus on my investments instead)! Currently, Travel PT pay rates are even higher than when I graduated in 2015, so it’s possible to make significantly more than I did my first year, especially with some leniency on location and/or setting.

Travel therapy is, without a doubt, the way to make the most money as a new grad physical therapist with the least amount of hassle. With that being said, it isn’t right for every new grad. You need to be confident in your evaluation and treatment skills, be a relatively quick learner, and be comfortable moving from place to place in order to succeed.

Which Will You Choose?

There are multiple ways to earn more than $100,000 per year as a new grad physical therapist but these are three of the best ways that don’t require working lots of extra hours. The right choice for you will ultimately depend on your own personal situation and circumstances. As a new grad, it’s important to make a decision that is a good fit and will allow you to grow both professionally and personally. No matter what decision you make, be sure to go in well informed and knowing what to expect to improve your odds of success.

If you choose to pursue travel therapy, we have a free Travel Therapy 101 series that will get you headed on the right track! We can also help get you connected with great Travel Therapy Recruiters who will work well with you as a new grad.

Related Articles:

• 6 Ways to Ensure Success as a New Grad Travel Therapist
• Is Travel Therapy Right for You as a New Grad?
• Do You Receive Mentorship as a Travel Therapist?

Written by Jared Casazza, PT, DPT – Jared has been a traveling physical therapist since 2015. He has become an expert in the field of travel healthcare through his experience, research, and networking over nearly a decade.