Tag: travel therapist

Choosing an RV as a Healthcare Traveler

~ Travel Therapy Mentor ~ Leave a comment


We often receive questions from travel therapists about how to set up housing as a healthcare traveler. Some therapists and other healthcare professionals (nurses, etc.) choose to live in an RV during their travel healthcare journey. We at Travel Therapy Mentor personally lived in a fifth wheel camper for about 3 years during the beginning of our travel PT careers.

There are a lot of pros and cons to consider when deciding if the RV route is right for you, and when comparing RV life to finding short term housing. But if you’re fairly certain you do want to pursue the RV life, the next thing you may be wondering is how to find the right RV for you. We’re excited to share this guest post from Travel PT Kayla who lives full time in an RV with her husband and pets.

As traveling healthcare workers, we are often moving all around the country. Living full time in an RV can be a great way to have a permanent home on the road that can help to provide comfort and stability. It can also provide fun and adventurous journeys.

If you’re a traveling healthcare worker considering pursuing the RV life, you may be wondering how to choose the right RV. Here are some tips to help you find an RV that’s right for you.

Background

My name is Kayla Eldridge and I am a traveling Physical Therapist. My husband, Ryan, is a remote software developer who travels with me, and we have been living full-time in our 5th wheel camper with our two cats since 2020. We chose RV living because we found it to be difficult to find affordable, pet friendly short-term housing. We also want our cats to be happy and comfortable in a permanent living space where we don’t have to worry about them ruining other people’s furniture. We bought our 2021 Grand Design Reflection 31mb and 2014 Ford F350 truck in June 2020. 

Overview of Different Types of RVs

If you’re new to RVing, you might be unaware of the different types of RVs. There are two main styles, each with different classes within them. Motorhomes are drivable RVs with an engine, and towables are towed behind a truck.

Motorhomes are broken up into 3 classes:

  • Class A are big rigs with panoramic front windows. These drive like a bus so there can be a bigger learning curve.

  • Class B are vans. These can get you into smaller campsites easily and quickly. Driving them can be more familiar and easier. They have a very small living space which can be challenging but not impossible for some people.

  • Class C is between class A and B in terms of size. They tend to have more beds than Class A so it can be better for families. Like Class B, they typically use gas instead of diesel, making it more cost effective.

Towables are generally broken up into two categories with a wide range of different options in each:

  • The first is a travel trailer. These are lighter, shorter, and smaller (though, not always). This makes them easier to fit into locations that have height restrictions from bridges or trees. They are towed behind the vehicle using a trailer hitch. They are sometimes referred to as a “pull-behind.”

  • The second is a fifth wheel which is bigger, heavier, and taller. These offer more living and storage space but will require a bigger truck to tow (maybe even a dual rear wheel). They are easier to maneuver than a travel trailer (especially in reverse) since the pivot point is closer to the midpoint of the truck. These are towed from a hitch that is installed in the truck bed. This means you’ll need to install the special fifth-wheel hitch and can’t tow with just any regular trailer hitch.

Within each category, there is a wide array of different layouts and the potential for a number of slideouts which can create extra space. For example, a “toy hauler” model has an opening on the back of the trailer that opens up like a garage, which can allow you to haul extra equipment like motorcycles or have extra space for an office or extra bedroom.

There are many considerations, so it’s important to look at each of them and determine which style would best suit your needs.

Process of Searching for the Right RV

Searching for an RV can be a long and daunting process, but if you put in the time and do your research, you can find the right one to call home. It’s important not to rush the process and make uncalculated decisions, especially if you plan on living in the RV full time. 

There are many considerations for navigating through this process. They all overlap, making it difficult for this to be done as a step by step procedure. You will likely go back and forth among each area multiple times until you figure out what works best for you.

Lifestyle

Start thinking about your lifestyle and what you need in a home to be happy and comfortable.

When you search for RVs without making these considerations, it’s possible that you could get caught up in the moment and let the excitement cloud your judgment. Having a list of your wants and needs can prevent forgetting necessary qualities. 

Motorhome vs. Towable RV

Deciding between a motorhome or towable RV depends on a few factors. Would you rather drive your home and tow a smaller car behind it, or drive a truck that tows your home and use the truck as your in-town vehicle after unhitching? Who will be driving and what type of vehicle are they comfortable driving? Not just when you’re moving the RV but after the RV is parked and you need to drive to work or around town. 

Motorhomes can be easier to park, especially in reverse, because there is no pivot point. This makes them great for a single person. Towables can be more difficult to back into spots, often needing two people. It requires good communication, time, and patience, especially for the challenging spots. A backup camera could help for either type of RV. Pull-through spots would make parking easier, but these usually cost more and are only available at some RV parks.

Motorhomes allow you to tow a small, fuel efficient car, which is easier for around town; whereas with towables, you only have the towing vehicle. If you choose the motorhome and car, you will have two engines to maintain, which can be costly. Whereas the towable and truck only has one engine.

If a motorhome engine requires maintenance, you may have to find a hotel to stay in while it is being repaired. Towables can be unhitched so that you can stay in your RV while the tow vehicle is repaired.

Both motorhomes and towables have options for slideouts which provide more living space. We felt that towables had a larger variety of floor plans giving more options for living spaces.

Additional vehicles

If you purchase a towable RV, make sure to check the RV and Trailer towing guides to determine what size/type of truck you will need to safely tow the RV.

If you buy a motorhome, you can tow a small car behind it, but you have to make sure it’s compatible for towing as not all vehicles are.

If you already have a vehicle you’d like to keep that can tow or be towed, this might help you decide on the type of RV you get. Otherwise, you will have to consider getting a new vehicle along with your RV purchase.

Finding the Right Floor Plan

View as many varieties of floor plans as you can to figure out what you like and what meets your needs. Being inside the RV is drastically different than looking at floor plans online. On top of seeing them at dealerships, try to go to an RV show or rally if there is one near you. Just don’t let the salespeople tempt you into a purchase before you are ready.

If you plan on staying in parking lots or truck stops on travel days, check if you can access your refrigerator, bathroom, and bedroom with the slides in. Most of the time you will not be able to open the slide-outs in parking lots, so plan accordingly. If you can’t access the fridge, you could also use a cooler or a mini-fridge in an outdoor kitchen for meals on travel days.

If you have pets, you will need space for crates, litter boxes, and food/water. Make sure these are also accessible with the slides closed during travel days. We built a tunnel into a storage compartment to store the litter boxes. It keeps the RV from smelling and tracking litter on the floor while also providing us with more space inside. When we travel, we move the litter boxes to the shower since the cats can’t access the tunnel with the slides closed. A second bathroom would also work.

If you travel with a partner who works from home, they will need a work space. Using the kitchen table could be a nuisance if they have to keep moving everything. Having a good setup will help them to be more successful when working from the road. Finding a floor plan that has additional space such as a bunkhouse, mid-bunk room or toy-hauler garage will allow them to set up a permanent desk space. We built a desk in our mid-bunk and we have seen many great renovations to turn the garage of a toy-hauler into really cool office spaces.

Some smaller details to consider include location of the windows, whether you’d prefer a booth or dinette, the color scheme and decor, and storage space. Check if you can see the TV comfortably. If you plan on bringing bikes, make sure the hitch is rated to carry them.

Finances

You will need to come up with a budget to follow. Consider the above categories when you create your budget and remember that the budget should include cost of the RV, insurance, extra vehicle (if applicable), hitch or tow device and accessories. Repairs can also be expensive, so it is important to set money aside in your emergency fund for when unexpected things happen.

You’ll need to consider if you can buy the RV in cash or will need to finance. If you decide to finance, it is a good idea to get pre-approved to know how much you can afford.

Purchasing RV from Dealership or Independent Seller

Buying a new RV from a dealership can guarantee that you know how well it has been taken care of, if you don’t mind taking the depreciation hit. Depending on the brand though, big issues are often seen right as you take them off the lot, so make sure it’s a reputable brand that is known for good customer service. In our experience, Grand Design has proven to have good customer service.

Dealerships provide inspections to make sure the RV is in working order, but they can often miss a lot. So don’t be surprised if there are issues even after buying brand new from a dealership.

Dealerships can also provide a bigger range of RVs to see in person and provide financing options, which can be beneficial.

When buying from an independent seller, you will have to provide your own financing, but you can find good deals if you search around. Keep in mind that if you buy used, many RV parks do not allow RVs over 10 years old to stay in their parks, so consider the age when you’re buying it plus how many years you plan to use it.

When buying used, you will want to do a full inspection of the RV to assess if there is any damage prior to buying it. You can either do it on your own or hire a professional. This cost will be out of pocket, but it can be worth the added expense to ensure you made a good purchase.

When assessing an RV, there are a few things to look out for. Look for any water damage or mold, as fixing it can be costly and difficult. Check that the appliances are working properly. Make sure the furnace, air conditioners, water pump, and water heaters are in working order. Also, if possible, check underneath for water leaks in the pipes as that can be a common issue as well. 

Conclusion

The process for choosing an RV to live in can be overwhelming, but when done correctly, it can be extremely rewarding. We have lived in several different types of housing, but our RV has been our favorite place to live by far.

We have been to a lot of incredible places and have enjoyed many adventures throughout our travels that we wouldn’t have had without our RV. We hope our advice can help you to also choose a wonderful home to take on the road!

Written by Kayla Eldridge, PT, DPT – If you would like to read more about how Kayla and her husband Ryan got started traveling, living in the RV or about their adventures, check out their website at www.eldridgeexpedition.com or follow them at EldridgeExpedition on Instagram and Facebook. They have pictures of their RV when they first bought it and pictures of all the updates they made to it over the years to make it feel more like home.

Thank you Kayla for providing your insights to healthcare travelers making decisions regarding housing and RV living!

If you’re new to travel therapy and have questions, be sure to check out the resources we have available at Travel Therapy Mentor, including getting connected with our Recommended Recruiters. Feel free to contact us with any questions!

Which Student Loan Repayment Plan is Best for the Average Travel Therapist?

~ Travel Therapy Mentor ~ Leave a comment

I’ve been writing and talking about student loans a lot more lately now that it looks like they’re finally going to go back into repayment in September 2023. Most people have thought very little about their student loans for the past 3.5 years while payments and interest have been paused. Now that repayment is about the start again, everyone is trying to determine the best plan for their own student loans, especially with recent changes.

The big change that I wrote about recently is the introduction of the SAVE (Saving on a Valuable Education) plan, which is going to be taking the place of REPAYE (Revised Pay as You Earn). I’d long been an advocate of the REPAYE plan for healthcare travelers, so now that SAVE is taking its place, many travelers have been asking if they should switch to SAVE, or if PAYE (Pay as You Earn) or potentially even the standard 10 year repayment plan would be best for them.

There are many pros of the new SAVE plan over REPAYE, but also a few cons as well. If you’re unfamiliar with the differences, then check out this article to see what all is changing. You can also check out this video we made discussing the new changes.

Some of the questions that we’ve gotten after putting out the above article and video about the new SAVE plan caused me to sit down with an excel spreadsheet to model out some scenarios to determine what is the best choice for the average travel therapist. The conclusion from the article and video were that basically the best choice would depend on your situation, especially what you chose to do after traveling, but that doesn’t really help people practically speaking. I wanted to go more in depth with some numbers and charts to give people a look at what plan might be best for the average traveler, along with the considerations that would impact the choice.

Check out the hypothetical scenario and the results below, which should help you determine the right student loan repayment option for your own situation.

The Average Travel Therapist Scenario

We’ve interacted with several thousand travel therapists over the years and have seen a variety of different situations.

Some travelers travel for only a contract or two and then settle down. Maybe because they found a facility or city they loved and couldn’t leave, maybe because they found their soulmate and decided to stay, or maybe because they decided travel wasn’t a good fit for them so they went back home to find a permanent job.

Some travelers, like us, start traveling and then can’t stop traveling. Either because of the higher pay, the adventure, the freedom, and/or the flexibility, they end up doing travel therapy for 5+ years before settling down somewhere. Some even choose to do a version of semi-retirement and continue to travel indefinitely.

These situations are outliers though. The average traveler travels for 2-3 years before settling down into a permanent position. I wanted this scenario to be representative of the majority of travel therapists to help as many people as possible. So, for the hypothetical scenario below, I chose to assume that this travel therapist graduates from school, travels for three years, then settles down into a permanent position where they receive normal raises over the course of their career.

Here are all of the details:

  • Single individual with no spouse or children
  • Travel therapist for 3 years after graduation
    • Working 48 weeks per year as a traveler and making $25/hour as their taxable wage
    • $15,000/year contributed to 401k for retirement
  • Permanent job starting after year 3 with a beginning salary of $75,000/year
    • 3% annual raises on permanent job salary
    • $15,000/year contributed to 401k for retirement
  • $140,000 in federal student loan debt at graduation, all from grad school, with no private student loans
    • 6% average student loan interest rate
  • The Federal Poverty Line (used to determine payment amounts on SAVE and PAYE) continues to increase at 2.4% per year, which is the average over the last 10 years

The traveler wants to decide between SAVE, PAYE, and standard 10 year repayment for their student loans, with the goal of paying the lowest amount over time.

First, let’s look at what this traveler’s annual taxable income, Adjusted Gross Income (AGI) after 401k contribution, and the federal poverty line will look like over time, to get an idea of how those variables change throughout the repayment period.

Annual taxable income and AGI stay steady for the first few years while traveling before jumping up due to the higher (taxable) pay at the permanent job. (Remember, as travelers our taxable hourly pay is lower than at most perm jobs, and this is what is used to determine student loan repayment, while stipends are not accounted for). After year three, total income and AGI after 401k contribution both rise in tandem at a rate of 3% (assuming 3% raises each year), and assuming the 401k contribution of $15,000/year stays constant. At year 25, annual income ends just below $140,000/year. The federal poverty line increases at the recent average rate of 2.4% starting at $14,580 (the amount for 2023) and ending at just under $26,000 after 25 years.

Payments Over Time

Next, let’s look at how this traveler’s payment would change over time on each of the repayment plans.

On the standard 10 year repayment plan, the payment amount remains constant at $18,648/year ($1,554/month) for the full 10 year term.

The PAYE plan would start with start with a low payment while traveling (under $100/month) before jumping to $3,652/year when beginning the permanent job after year four. This payment would gradually grow over time to $7,103/year ($592/month) in year 20 when the remaining loan balance is forgiven.

The SAVE plan would start with a $0/month payment while traveling (due to the low taxable income) and then jump to $2,478/year ($206/month) when beginning the permanent job after year four. This payment would gradually grow over time to $6,656/year ($555/month) in year 25 when the remaining loan balance is forgiven.

An important thing to point out here is that even though the repayment term on SAVE is five years longer than PAYE, the ending payment amount (and all the payments along the way) on SAVE is lower than the ending payment amount on PAYE due to the difference in how discretionary income is calculated. PAYE bases payments on 10% of the amount over 150% of the poverty line whereas SAVE bases payments for grad school loans on 10% of the amount over 225% of the poverty line. In practice, this leads to lower monthly payments on SAVE than on PAYE for any given income level. You can also see on the graph how the rate of change for payment increases over time is slower on SAVE than PAYE due to this difference.

Increases in Interest on Loans Over Time

Now that we know what the payments would look like over time, let’s compare the interest accumulation on SAVE vs. PAYE.

Here is where you can see where the new SAVE plan shines. Even though payments are lower on SAVE throughout the repayment term, no interest accumulates on the loans at all, no matter how low the payment is each month. The accumulated interest is automatically subsidized each month, which means the loan balance never grows.

On the PAYE plan, interest accumulates more quickly the first three years due to payments being lower while traveling. After year three, the accumulated interest slows down each year since payments are now covering a larger portion of the interest each month, making the loan balance grow more slowly. On PAYE, capitalized interest is capped at 10% of the original loan balance, so no more interest is capitalized after year two, but the interest continues to accumulate on the loans throughout the full term, which will become important at the time of loan forgiveness.

It’s interesting to note that at no point during the repayment term on either of these plans does the monthly payment get high enough to exceed the amount of interest accumulating each month.

The standard 10 year plan isn’t included here since the payment is a fixed amount each month and the loan is paid in full at the end of the 10 year term.

Ending Balance at Time of Student Loan Forgiveness

Now that we know how much interest accumulates each year on SAVE and PAYE, let’s look at what the ending balance will be for each of the different plans at the end of the respective loan period.

The standard 10 year plan would have no remaining balance after year 10. The balance on SAVE would still be the original principal amount of $140,000 at the end of the 25 year term, due to no interest accumulating on the loans over the full repayment term. PAYE would end with a balance of a little over $231,000 since the loan balance gradually grew over time as interest accumulated each month.

Taxes Owed on Forgiven Student Loan Debt

Now that we can see the ending balances for each plan, let’s take a look at how much would be owed in taxes on the forgiven amount at the end of the loan terms.

Currently, taxes are owed on any student loan debt that is forgiven outside of the Public Service Loan Forgiveness (PSLF) program. I believe there’s a fairly high probability that this will change over time, but for now, it’s prudent to plan to pay taxes on any forgiven student loans on the PAYE or SAVE plan.

There’s no way to know exactly how much will be due in taxes, because tax rates and standard deduction amounts change each year, but we can estimate. I think that a realistic estimate is 35% of the forgiven amount for this individual working a full time permanent job at the time of loan forgiveness.

Assuming a 35% tax rate on the forgiven amount, $49,000 would be owed on SAVE, while just under $81,000 would be owed on PAYE. This is a sizable difference between the plans.

No taxes would be owed on the standard 10 year repayment plan since no student debt would be forgiven.

Total Paid Over Time

Now let’s look at the most important part of this hypothetical scenario: how much is paid in total over the life of the loans.

Despite SAVE having the longest repayment term, it would result in the lowest amount paid in total by nearly $30,000!

The total payments over time between SAVE and PAYE were pretty close, but the big difference was the taxes owed at the end of the repayment term, which is due to the very generous SAVE monthly interest subsidy. Not having your loan balance accumulate interest over time is a really big deal.

The standard 10 year repayment plan would be by far the worst choice in this scenario. Not only would this individual pay $42,000 more than on SAVE and $13,000 more than on PAYE, but it would also be paid over a much shorter time frame. This is important due to the effects of inflation over time. $1 paid at year 10 is worth significantly more than $1 paid at year 20 or year 25. A dollar lost over 40% of it’s purchasing power in the last 15 years, to illustrate how significant the effects of inflation can be over time. For that reason, the standard 10 year repayment plan is actually even worse than it looks on this chart in inflation adjusted terms.

Considerations

In this hypothetical scenario for an average travel therapist, SAVE comes out significantly ahead of both PAYE and the standard 10 year repayment plan in terms of total amount of money paid.

Although I think this scenario is fairly close to the average traveler situation, of course everyone’s situation will be different in reality. For that reason, I want to now discuss how changes in various factors would change the outcome.

  • As income increases, PAYE and the standard 10 year repayment plan start to become a better choice. Assuming all variables above stay the same, but starting income at the permanent job increases to $95,000/year with the same 3% annual raises, all three of the repayment plans are actually pretty equal in how much would be paid over time when adjusted for inflation.
  • On the other hand, lower incomes heavily favor SAVE over the other two plans. This could also come into play for those that plan to switch to part time or PRN work at some point in their career, which means a lower income and favors choosing SAVE.
  • The higher your student loan balance, the more the numbers favor SAVE. The lower your student loan balance, the more PAYE and the standard 10 year plan begin to be a better option.
  • Higher interest rates favor SAVE. Lower interest rates favor PAYE and standard 10 year.
  • Higher retirement account contributions favor SAVE due to the lower AGI. Lower retirement account contributions favor PAYE and standard 10 year.
  • Getting married and/or having kids heavily favors SAVE. To illustrate this, let’s say that at the end of year 3, you get married (filing separately) and have twins. With all of the above variables staying the same, SAVE now would come out nearly $100,000 ahead of PAYE and $140,000 ahead of the standard 10 year repayment plan. This is due to how discretionary income is calculated on the plans as I mentioned above.
  • Traveling longer before settling into a permanent job favors SAVE; whereas, traveling for a shorter period before settling down begins to favor PAYE and the standard 10 year repayment plan.
  • There are also some situations where a traveler who thinks they’ll earn a very high income (well over $100k) once they settle down would be best off taking a mixed approach of SAVE while traveling to take advantage of the low payments and interest subsidy, and then paying off their loans ASAP once they stop traveling.

Taking a look at these variables, you can choose which options may more closely align with your actual situation. Then, try to determine which plan would be most favorable for you.

Conclusion

I hope that this article will give you some insight into how to plan for your own student loan repayment. Based on the numbers, it seems that most healthcare travelers will be in the best shape over the long term on SAVE, but there are a lot of variables to consider.

If you’re a traveler who plans to settle down into a normal paying perm job after a few years and have a family while saving for retirement, then it’s hard to make a case against SAVE.

If you’re a traveler who plans to stop traveling, start a business, earn a lot of money, and never have kids, then SAVE won’t be as beneficial.

If you’re a traveler who plans to travel for a long time while saving heavily, then only work part time/PRN when eventually settling down and having kids, then SAVE is a no brainer.

If you’re a traveler with a low student loan balance, then SAVE might not make sense and paying off the loans ASAP may be prudent.

Some people are very debt adverse, and even if it makes more sense mathematically to go on an IDR plan, they’d prefer to just get rid of their debt, and that’s understandable as well. Student loan debt repayment is basically a “choose your own adventure” where a lot of variables and psychological factors come into play. There’s no one size fits all answer for everyone, and sometimes even the best mathematical choice won’t be the right choice for you based on your life circumstances. But, assessing all your options and being well informed is vital.

If you aren’t sure what’s the best choice for you or want to double check your decision, I’d recommend creating an account at FitBux where they can help you assess your personal financial situation.

If you have questions about travel therapy or student loan repayment options for travel therapists, feel free to send us a message. We also have additional resources you can check out below!

If you’re interested in getting started as a travel therapist, check out our free Travel Therapy 101 Series and get connected with the best recruiters by filling out our Recruiter Recommendation form.

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Jared Casazza

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.