A Ph.D., which stands for doctor of philosophy, is designed to train an individual for research and clinical practice, with an equal emphasis placed on both. A Psy.D, or doctor of psychology, is designed to focus more on clinical practice, although there is some research training.
A Ph.D. program culminates in a dissertation, an original research-driven empirical study completed by the doctoral candidate. The candidate must defend the dissertation before a panel before receiving the Ph.D. There is a similar project in Psy.D programs, however, it is usually actionable and related to clinical functionality. A Psy.D candidate may design a treatment program to fulfill the dissertation or project associated with the Psy.D degree.
While both fields of study can be expensive, Ph.D. programs are often funded by the university through which they are offered. Many graduate students in Ph.D. programs do not have to pay and are awarded a small stipend for conducting research or teaching undergraduate classes as they study. Psy.D degrees, however, do not usually come with the same options. In fact, Psy.D degrees are usually not funded at all and are typically offered through professional schools as opposed to universities.
In the academic world, a Ph.D. is considered superior to a Psy.D, though in the professional world holding a Psy.D is not considered a disadvantage. Depending on your professional goals, the differences between the two degrees may be negligible.
A Psy.D degree offers clinical and professional training but little to no research or teaching experience. Ph.D. degree programs place equal emphasis on research and clinical/professional training. Consequently, a Ph.D. may provide more options for employment.