There is both good news and not-so-good news regarding borrowing for dental school, but just remember two important principles when
you start thinking about student loans for dental school:
1. Never borrow more than you really need.
2. Plan to pay back what you borrow.
- 17% of dental school graduates in the Class of 2019 reported no student loan debt.
- Average educational debt for all indebted dental school graduates in the Class of 2019 was $292,169, with the average for public and private schools at $261,305 and $321,184
respectively.
- 19% of indebted dental school
graduates in the Class of 2019 reported debt less than $200,000.
- 25% of indebted dental school graduates in the Class of 2019 for public and private dental schools reported debt of $200,000 to $300,000.
- 39% of indebted dental school graduates in the Class of 2019 reported student loan debt of more than $300,000.
Good news
- Dental school graduates have a great reputation for timely repayment.
- You can currently fund your entire
COA (Cost of Attendance) with federal loans with a combination of federal
direct unsubsidized and federal direct PLUS (formerly known as Grad
PLUS), negating the need for private loans.
- Dental
school graduates typically enter the income stream after graduation faster
than other health professions colleagues, which may allow for aggressive
repayment.
- It is easier than ever to track your federal student loans in the
National Student Loan Data System (NSLDS)
- You
may graduate with multiple federal loans, but they are likely going to be
serviced by just one loan servicer, which negates for many the need to
consolidate after graduation.
- Refinancing
at a lower rate with a private lender after graduation is now an option
for many dental school graduates.
Not so good news
- Your entire
student loan portfolio may be unsubsidized, with interest accruing from time of
disbursement—interest that will eventually be capitalized (added back to the
principal).
- Interest
rates on new direct unsubsidized and new direct PLUS loans are fixed and
change each year, and the maximum rates are high at 9.5% and 10.5% respectively.
- Changes may eventually be made to the income-driven repayment
plans as well as the Public Service Loan Forgiveness program, which is all the more
reason to never borrow more than you really need.