Curing the Pharmacist Student Debt Endemic with Employer Benefits

Pharmacist student debt impacts everyone

Pharmacists are cornerstones to maintaining health and well-being. They dispense life-saving medications, advise patients on safe use, and play a critical role in public health.

However, new pharmacists enter the profession with colossal debt due to the steep cost of entry. Even after landing a job, they face mounting customer service demands that leave them feeling unappreciated, unvalued, and unmotivated.

Let’s dive into how the student debt crisis is affecting pharmacists and what top companies are already doing to lighten the load.

Pharmacists are essential… but struggling

Many pharmacists feel financially and emotionally unsupported, in a large part due to high student debt and ongoing mental health impacts.

The High Cost of Entry

Becoming a licensed pharmacist is not cheap nor easy. The average Doctor of Pharmacy (Pharm.D.) program costs $153k – up almost 25% in the past decade.

But tuition is only the beginning. Add on the national exam, state jurisprudence requirements, and licensure fees, and graduates face a significant financial burden before they even get a foot in the door.

Minimum Cost of Entry

Like with most healthcare professions, maintaining licensure is yet another cost. New pharmacists in New York, for example, will pay $1,901 in just licensure and renewal fees over their first decade in the field.

The Debt-to-Income Reality

Maintaining licensure isn’t the only financial burden. 83.2% of pharmacists take out student loans in order to earn their Pharm.D. and spend a large chunk of their careers paying it back.

There’s no denying that pharmacist salaries are relatively high, averaging around $137k. However, paying off $178k in student debt (the average for pharmacists) is still difficult, especially early in the career.

Financial experts generally advise students to not borrow more than their expected first-year salary. With starting salaries for pharmacists around $107k, new pharmacists are facing debt-to-income ratios of 1.7 – owing nearly double what they make.

Sources: AACP, BLS, Education Data Initiative, Payscale

Pharmacists overall have debt-to-income ratios of 1.3, well above a healthy amount. With staggeringly high debt, it’s no wonder a majority of pharmacists have major concerns about their debt load.

The Mental Toll

We know student debt affects pharmacists financially. Perhaps even more concerning is how it affects them mentally.

High stress and widespread burnout is a huge problem for pharmacists, many of whom described their work as “dehumanizing,” “soul-killing,” and plagued by harassment from customers. One employee wrote:

“As a pharmacist, I am treated as an easily [replaced] staff member with no respect for my education level or impact on the community.”

The public’s perception of pharmacists as customer service workers (despite having doctoral degrees) weighs heavily on many in the field. Major student debt only intensifies the emotional strain, adding personal burden onto their workplace struggles.

Pharmacist turnover has doubled

With the rising cost of Pharm.D. programs and the mental hardship pharmacists face, it’s easy to see why turnover is a growing problem.

The high cost of entry and resulting debt burden deters some from entering or staying in the field. A survey by the American Society of Health-System Pharmacists (ASHP) found that the pharmacist turnover rate is 11%, nearly double what it was a decade ago.

An aging population with increased health needs means recruiting pharmacists is crucial to keeping up with demand. The Bureau of Labor Statistics (BLS) projects 18,300 additional pharmacists will be needed by 2033 to keep up with the needs of the public.

Research suggests rising debt discourages graduates from pursuing residency training or hospital-based practices, both of which are projected to grow over the next ten years. If left unaddressed, public health could suffer.

Employer student loan assistance boosts pharmacist morale

One key thing companies can do to support their pharmacists and attract new ones is to provide student loan assistance.

Student loan assistance benefits help employees make meaningful progress toward paying off student debt while building loyalty and morale. Some employers are already beginning to recognize the power of employer student loan benefits: debt relief isn’t just a nice perk – it’s a strategic move to maintaining and growing the workforce.

Employer student loan repayment (ESLR) benefits are gaining traction across industries – and for good reason. Helping to pay off employee student debt is a win-win:

• For employers, ESLR improves retention, attracts well-educated applicants, and boosts workforce morale. In fact, 86% of employees say they’d be willing to commit at least 5 years to a company offering student loan assistance.
• For employees, ESLR relieves financial stress, shortens repayment timelines, and makes future savings possible. Contributing toward a pharmacist with $176k in student debt – or matching their monthly payments – could save them tens of thousands of dollars and years of repayment.

There’s a reason 1 in 4 graduates will only consider jobs offering student loan assistance and a third of employees say it’s the benefit they want most.

Don’t let your pharmacists struggle alone

Pharmacists are essential to public health, yet they are burdened by high educational costs, staggering student debt, and worrisome mental health. As one pharmacist put it:

”... we all went into pharmacy to help people. But, when is someone going to help us?”

Employers have an opportunity to ease the financial and emotional strain of their employees. Student loan assistance can make a big difference to quality of life, empowering pharmacists to thrive while strengthening the companies and communities they serve.