Repayment plans and repayment strategies

When determining which repayment plan is right for you, remember there is never a penalty for aggressive repayment under any federal repayment plan. In addition, you can estimate repayment under all these plans with the calculators at www.StudentLoans.gov and the AAMC/ADEA Dental Loan Organizer and Calculator (DLOC).

Standard 10 year

  • 120 level payments.
  • Payments tend to be higher due to shorter repayment term.
  • In general, designed for dental and dental hygiene graduates with lower educational debt or whose income and other resources can support the relatively higher payments.
  • Part of an aggressive repayment strategy.

Extended 25 year

  • 300 level payments.
  • Payments are lower than Standard 10 year, but total interest costs and total repayment is much higher if the loan is “held to term” (the borrower takes the entire 25 years and does not accelerate payments).
  • In general, designed for dental and dental hygiene graduates with higher educational debt who need lower monthly payments, at least for a short period of time.

Graduated 10 or Graduated 25 year

  • Payments increase in designated amounts at designated intervals.
  • Since payments start lower, total interest costs and total repayment are much higher compared with Standard and Extended plans, unless the borrower accelerates payments.
  • In general, designed for dental and dental hygiene graduates who have other short-term financial obligations that must be met (for example, outstanding consumer debt).

Income-driven

  • Multiple types of plans, all tied (in part) to income.
  • Examples include Income-Based Repayment (IBR) and Pay As You Earn (PAYE).
  • Payments change each year.
  • In general, designed for borrowers whose debt greatly exceeds their incomes.
  • Ideal for many advanced dental education residents who are in hospital-based residency programs.