Educational Debt  

The most recently reported educational debt for indebted dental school graduates in the Class of 2024 is $312,700.

Good news

• Dental school graduates have a great reputation for timely repayment.
• The average educational debt for graduating dental students with debt has declined the past two years.
• 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 at StudentAid.gov.
• 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.
• Accrued and unpaid interest no longer capitalizes at the start of repayment.

Not so good news

• Your entire student loan portfolio may be unsubsidized, with interest accruing from time of disbursement. This means the balance at repayment will be higher than the actual amount you initially borrowed.
• 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. The interest rates on new loans disbursed on or after July 1, 2024 are 8.08% fixed for direct unsubsidized and 9.08% fixed for direct PLUS (Grad PLUS), all the more reason to never borrow more than you really need.