Recently passed legislation (H.R.1) includes significant changes in both the borrowing and repayment of federal student loans, changes that are certain to impact dental students. Below, we focus on two changes likely to impact borrowing for dental school starting July 1, 2026.
Elimination of Direct PLUS (Grad PLUS)
Currently, there are two federal direct loans many dental students use to pay for dental school: direct unsubsidized and direct PLUS (Grad PLUS). With these two federal loans, dental students can currently borrow up to the full cost of attendance when needed. However, Grad PLUS is being eliminated effective July 1, 2026 for first-time Grad PLUS borrowers, as explained below:
- Students with an outstanding direct PLUS (Grad PLUS) as of July 1, 2026 for their current degree program may continue to borrow Grad PLUS in subsequent years until July 1, 2029.
- However, note that having a direct PLUS from a predental graduate program (for example, a Masters in Biomedical Sciences) does not qualify a borrower starting dental school on or after July 1, 2026 to be able to borrow direct PLUS for dental school. In other words, you must already be borrowing a Grad PLUS for dental school as of July 1, 2026 in order to keep borrowing from the Grad PLUS program. This is why we anticipate many incoming dental students in the Class of 2030 not being able to borrow Grad PLUS.
- No Grad PLUS loans will be disbursed as of July 1, 2029.
New Borrowing Limits on Federal Loans
H.R.1 sets new limits on how much students can borrow not only each year, but for their degree program as well, as explained below:
- $50,000 annual limit for professional students (for example, dental and medical)
- $200,000 aggregate limit for professional students, less any amount borrowed for a graduate program
Potential Impact on Borrowing for Dental School
With these two significant changes, we anticipate many dental students, especially those in the Class of 2030, will need to borrow private loans to help make up any shortfall between their cost of attendance (financial aid budget) and any other financial aid such as grants, scholarships, and the reduced amount of federal student loan eligibility.
Watch this space for important information on private loans.
About Paul Garrard, M.B.A.:
Paul S. Garrard, M.B.A.
Founder and President
PGPresents, LLC
Independent Student Loan Consulting
ADEA Senior Advisor for Student Financial Services
With more than 35 years of experience in higher education and student financial aid, Paul Garrard is one of the most well-known and in-demand educational debt management experts in the nation, especially in the health professions communities. Mr. Garrard currently serves as a consultant for the American Dental Education Association (ADEA) as their Senior Advisor for Student Financial Services.
He has extensive experience in the nonprofit and for-profit sectors of higher education. In 2008, he started his own consulting firm, PGPresents, LLC, designed to help promote responsible borrowing and responsible repayment.
His specialty is helping health professions graduates, including dental school graduates, manage their student loan portfolios by helping them develop repayment strategies that meet their career and financial goals. He also uses this expertise through ADEA to help inform incoming dental students about borrowing responsibly.
He is a nationally known speaker on financing a dental education and is a regular speaker at the ADEA GoDental Recruitment Event held prior to the ADEA Annual Session & Exhibition.
He holds a Bachelor of Arts from Samford University and an M.B.A. from the University of Georgia. Mr. Garrard works out of his home in Shepherdstown, WV.