Student Loan Spotlight: Repayment options every dentist should know in light of new legislation

Student loan debt can significantly impact a dentist’s career decisions and quality of life. With the average dental school graduate owing $296,500 in student loan debt, many dentists begin their professional careers with the stress of substantial six-figure debt and face high monthly payments. The good news is that dentists have several paths to manage and potentially reduce this burden, including forgiveness programs, refinancing and other repayment options. Here’s what you need to know about your options.

New federal student loan legislation passed July 4

Income-driven repayment is a federal repayment program that helps stabilize your monthly student loan payments based on your current discretionary income and family size. For dental school grads, income-driven repayment plans can be a good option to make payments more manageable and provide a potential path to forgiveness on your remaining student loan balance at the end of the repayment term.

Unlike Public Service Loan Forgiveness, you do not need to work for a government or nonprofit organization to be eligible for income-driven repayment, making this a viable option for dentists in private practice.

The One Big Beautiful Bill Act, signed into law July 4, will impact federal student loan repayment options, including income-driven repayment. The new legislation will reduce the number of income-driven repayment options and phase out several existing federal repayment plans, including the Saving on a Valuable Education, Pay As You Earn, Income-Based Repayment and Income-Contingent Repayment plans. Current borrowers enrolled in programs to be eliminated will have until July 1, 2028, to switch to a new plan.

Beginning July 1, 2026, new student loan borrowers will choose between one of two plans: a standard repayment plan or a new income-driven repayment plan called the Repayment Assistance Plan. The new plan calculates monthly payments based on a percentage of the borrower’s adjusted gross income, ranging from 1% to 10%, for up to 30 years. For more information, visit studentaid.gov. If you are currently enrolled — or looking to enroll — in a repayment plan, our student loan specialists can help you understand how new regulations may impact your repayment or forgiveness options.

Understanding Public Service Loan Forgiveness

Dentists who work at an eligible nonprofit or government organization could have their remaining federal student loan debt forgiven after 120 qualifying payments or 10 years of repayment. Eligible employers for the program include qualifying not-for-profit organizations, Veterans Affairs hospitals and dental schools.

To find out if your employer qualifies, use the employer search tool at studentaid.gov. Most borrowers will typically enroll in an income-driven repayment plan as part of the program.

Student loan refinancing for dentists

If you’re in private practice, refinancing your student loan debt with a private lender could help you save if you qualify for a lower interest rate. Keep in mind refinancing means you will no longer be eligible for federal programs like income-driven repayment and Public Service Loan Forgiveness, so make sure you understand the implications before making a decision.

Find dedicated student loan guidance

Developing a plan to tackle dental school debt early in your career could save you anxiety, time and maybe even money down the line. No matter where you are in your dental career, speaking with a knowledgeable expert can help you build a clear plan. ADA members can talk to a Laurel Road student loan expert through a free student loan consultation and get personalized guidance tailored to the financial needs of dentists.

With more than 20 years of experience in financial services, Ms. Fields is the head of business development and partnerships for Laurel Road. Laurel Road is a brand of KeyBank National Association.