Resource Article
How do loans work?
Understanding Federal Student Loans for Dental SchoolStudents
Pursuing a dental degree is a significant investment—both intime and money. For most dental students, federal student loans are a criticalpart of financing their education. Here’s a quick guide to how these loans workand what you need to know.
Two Main Types of Federal Loans
Dental students are typically eligible for two types offederal student loans:
- Federal Direct Unsubsidized Loans
- Interest rate of 8.08 %
- Interest begins accruing as soon as the loan is disbursed, even while you're in school.
- For dental school students, the annual limit is about $45,000.
- Federal Direct PLUS Loans (also called Grad PLUS Loans)
- Used to cover the remaining cost of attendance after maxing out the Unsubsidized Loan.
- Interest rate of 9.08%
- Interest begins accruing as soon as the loan is disbursed, even while you're in school.
How Repayment Works
Repayment on both types of loans is deferred while you're indental school and during a 6-month grace period after graduation. During thistime, interest does accrue on your loans. Upon repayment, which typically begins 6 months after graduation, theinterest is capitalized (added to your principal).
After dental school, borrowers can choose from severalrepayment plans, including:
- Standard Repayment (10 years, 15 years, 20 years, 25 years)
- Income-Driven Repayment Plans, such as REPAYE and SAVE, which cap monthly payments based on your income and family size.
Some graduates may also pursue Public Service LoanForgiveness (PSLF) if they work in nonprofit or government settings, thoughmost dental grads pursue private practice or specialty training.
Final Thoughts
Federal student loans give dental students the flexibilityto pay for their education without relying on private lenders. Understandinghow they work—and planning for repayment early—can make a huge difference inmanaging debt after graduation. Always review the latest terms and interestrates on the Federal StudentAid website before borrowing
