Financial Info 2017-07-10T11:47:15+00:00

HOW TO PAY FOR MASSAGE THERAPY TRAINING

PHILADELPHIA SCHOOL OF MASSAGE AND BODYWORK

Overview: Massage therapy training is a very cost effective means of entering a career path that is both professionally satisfying and financially beneficial. At $10,000 for tuition and books, the cost is less than one years tuition at a private college and most public or community colleges. You will be employable in the massage therapy industry in less than one year, if you select the day program, and in 14 months, if you select the evening program.

 

That said, if you are just launching your career, getting the money to pay for tuition can seem like a daunting process. We have put together a guide to educate you on your options for financing and offer tips and techniques for making a successful loan application. You may have already explored some of these options, but read on. There may be one idea that opens new possibilities.

one

STEP ONE 

Assess what resources are available to you:

  1. Do you have a parent, spouse, sibling or other relative who is willing and/or able to pay all or a portion of your tuition?
  2. Did your parents or other relatives set up and put money into a 529 plan for you? 529 funds may be used for massage therapy training.
  3. Do you own a home or other asset which could be used as collateral for a loan or home equity line of credit?
  4. Would a relative who is planning to include you in their will be willing to gift some funds to you while they are still alive? That way they can observe your success and experience your gratitude.
  5. Do you have part time work opportunities that would generate funds to support you and help pay tuition while you study?
  6. Do you have the option of living with your parents, a relative or friends while you study?
  7. What are your public transportation options for commuting to the school?

STEP TWO 

Assess changes to your income and expenses while you study:

  1. Will you have to reduce your work hours to do this program? By how much?
  2. What will your commuting costs to school be? Will those costs be more or less than your current costs?
  3. What is your current cost for rent? Can you move home temporarily to reduce your housing costs?
  4. What do you pay for car insurance? Could you go without a car for the time you are in school to save on car insurance?
  5. If you are going to school full time and working part time or vice versa, you willhave much less time to socialize. How much will that save you?
  6. Are there any other expenses?
three

STEP THREE 

Given your resources and expenses, assess your options:

  1. Does it make sense to wait a year and save like crazy?
  2. If you have a 529 plan, use that money first. Someone else funded the plan with after tax money. If you use the funds for education, the investment growth of the fund is tax free to you.
  3. The second best place to look for funding is a home equity line of credit. Because this financial vehicle is secured by a tangible asset, namely someone’s house, the interest rates charged are the lowest of any commercial loans. Rates we have seen in the marketplace are around 4%. Further, many home equity lines of credit allow you to pay on an interest only basis for long periods of time before paying down the principal.Here is one scenario of how a home equity line of credit might work either with a home you own or if your parents allow you to use their credit line: You draw money from the line of credit as your tuition payment plan requires. Remember, you only pay interest on what you have drawn out. This saves money over time. If your parents can’t afford to pay your tuition and interest, you can pay them pack every month. Once you have graduated and found work, it is in your best interest to start to pay the principal down. Once you have drawn out the full $10,000, your interest costs would be $33 per month. If you put $200 toward the principal, you would pay the balance off in just over four years.We recommend that, if you do this with your parents’ line of credit, you create a written agreement that outlines what you will pay and over what period of time. We can help you create such a document.
  4. Student loans are not available to our students at this time. We are a new school and have just started to make the necessary applications to qualify for Title IV accreditation.
  5. Commercial personal loans – Some banks offer personal loans that people can use for any number of things – vacations, weddings, home improvement projects, etc. The ability to obtain a personal loan varies widely from individual to individual. Factors that influence a person’s ability to obtain a loan include but are not limited to the following:
    1. How much money you currently make.
    2. The length of your credit history. How long have you had a credit card?
    3. The quality of your credit history. Do you pay your bills on time?
    4. The amount of credit you have and how much of that credit is debt. For example, if you have a $4,000 credit limit and you are carrying an ongoing balance of $1,000, you are using 25% of your available credit. Many banks like to see that number under 10%.
    5. Your employment history.
    6. Your ability to produce a cosigner.
    7. The creditworthiness of your cosigner. For example, if your parents have very good credit and are willing to cosign your loan, your chances of getting that loan are greatly enhanced.
    8. Your overall credit score.

    Once a bank or other financial institution has decided to offer you a loan, the rate of interest you pay is influenced by a number of factors:

    1. How risky the bank thinks you are. For example, the shorter your credit history, the higher your rate will be.
    2. How creditworthy the bank thinks your cosigner is.
    3. How long a period you want to pay the loan back.
    4. Whether you have an account with the bank you are about to borrow money from. Banks typically offer a rate discount to existing customers.
    5. Whether the loan is secured. For example, if you have a car that is worth the value of the loan, you could turn over your car title until the loan is paid off.

    Many banks have their loan applications online. It is advisable to look the

    application over so you can gather the necessary information and write down any questions you might have. We suggest you do research to see which banks offer personal loans and under what terms. One bank which we have researched that has a wide range of financing options is Wells Fargo. They are located right across the street from the school. Credit unions are another good source of personal loans.

  6. Credit cards – Whether using a credit card makes sense depends significantly on your individual situation. People with very good credit may receive offers for a card with a high credit limit and 0% interest for the first year. For others, particularly if you are just starting out, interest rates will be high and credit limits will be low. In either case, credit cards can be a useful tool in closing the gap between what you have gathered from other resources and your tuition costs. For example, let’s say you have the following in hand, and you won’t qualify for a commercial loan:Personal savings $1,500
    529 plan + $5,000
    Parental contribution + $1,500
    Total in hand $8,000

Gap to be filled by credit card $2,000

 

LIFE CHANGING EDUCATIONPHILADELPHIA SCHOOL OF MASSAGE

IN CONCLUSION:

We hope this guide has been helpful to you.

If you have questions, please feel free to visit us at the school or

CALL US AT: 267-930-7428

or connect with us through the web by clicking below

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Philly School of Massage & Bodywork