A Guide for Dentists

Mastering Your Loan Strategy as a Dentist
‍Dental school often leaves graduates with some of the highest student loan balances of any profession—and unlike most physicians, many dentists pursue careers in private practice or ownership where PSLF isn’t an option. That means your repayment plan needs to be carefully matched to your income, practice goals, and long-term financial strategy. The choices you make around refinancing, tax filing, and retirement contributions can dramatically affect how quickly (and efficiently) you pay down debt.

With program rules changing and interest compounding every month, now is the time to revisit your plan, avoid common pitfalls, and make sure you’re not paying more than you need to.

You can use the self-help information below to review your loans on your own, or schedule with us—we offer two complimentary one-on-one loan meetings to help dentists create a repayment strategy that supports both their career and personal goals. To get started, simply choose whether you’re a Dental Student, Dental Resident, or Practicing Dental Professional below.

Dental Students

Dental Residents

Practicing Dental Professional

Step 1 Understand Your Loan Types and Track Your Balances

Start by logging into StudentAid.gov and reviewing your complete loan breakdown. Here you’ll see each loan listed separately, along with whether it’s a Direct Unsubsidized Loan or a Grad PLUS Loan, the amounts borrowed, and the interest rates attached. For many dental students, Grad PLUS loans make up a large portion of the balance, and because they typically carry higher interest rates, they play a big role in shaping your repayment strategy.

Taking time to understand your loan profile now can save you headaches later. Knowing your total balance, interest rates, and loan types will help you anticipate what repayment might look like, recognize opportunities for lower payments through income-driven plans, and prepare for how upcoming programs like RAP could impact your debt. Having this clarity during school ensures you’re not surprised by the size or structure of your loans when it’s time to transition into repayment.

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Step 2 File Tax Returns Each Year of Dental School

Even if you have little or no income, it’s a smart move to file a tax return every year while you’re in dental school. These returns serve as official documentation of your income—or lack of income—and can be used later when you apply for an income-driven repayment (IDR) plan. Having a low or $0 income return on file allows you to qualify for the lowest possible monthly payment at the start of repayment, which is especially valuable as you transition into residency or private practice.

Filing consistently also gives you flexibility when it comes to timing. Loan servicers look at your most recent tax return when calculating payments, so being proactive ensures you always have a clean record to rely on. For many borrowers, this small step can lead to significant savings during the early years of repayment and set the tone for a smarter long-term loan strategy.

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Step 3 Consider Moving Grad PLUS Loans Into Repayment

Grad PLUS loans often carry the highest interest rates among your federal loans, which means they can grow quickly during school and grace periods. Instead of letting them sit untouched until after graduation, consider moving them into repayment earlier. By doing so, you may be better positioned for programs like the upcoming RAP plan, which is expected to reduce or offset unpaid interest so that your effective interest rate could be as low as 0%.

Since most dental students either earn $0 or only a small stipend during school, enrolling in an income-driven repayment plan usually means your monthly payment will be $0. This allows you to start building qualifying time without actually making payments, while also limiting the runaway growth of your Grad PLUS loans. In fact, with the right setup, you could position your Grad PLUS loans as your lowest-interest-rate loans during training, rather than your highest. For students with large balances, this simple step can significantly reduce the long-term cost of repayment.

More on Grad Plus Loans

Step 4 Learn About Income-Driven Repayment Options (Including RAP)

Not all repayment plans work the same way—and for dentists, understanding the differences is especially important. Plans like IBR (old vs. new), PAYE (while it lasts), and ICR have been around for years, each with different rules about payments and forgiveness. On top of these, the RAP plan is expected to launch in 2026 and could be one of the most beneficial options for the dental field. Unlike past plans, RAP is designed to keep payments affordable while also limiting how much interest can build, which is a big advantage for dentists carrying large Grad PLUS balances.

Learning the basics of each plan now helps you avoid costly mistakes later. For example, some plans may look similar but won’t qualify for PSLF, while others could set your payments far higher than necessary. RAP in particular may allow many dental professionals to keep payments manageable during residency or the early years of practice, while preventing interest from spiraling out of control. Knowing what’s available—and what’s coming—puts you in the best position to take advantage of new rules when they go live.

IDR Plan Options

Step 5 Explore Career Path Implications and Refinancing Options

For most dental professionals, PSLF isn’t a likely path since nonprofit or academic dentistry makes up only a small fraction of career opportunities. That means your repayment strategy should reflect whether you’ll be working in private practice, pursuing ownership, or considering an academic or hospital-based role. Your long-term career path will determine whether income-driven repayment, aggressive payoff, or refinancing is the smarter move.

Refinancing can look appealing, especially if you secure a lower interest rate than your federal loans carry. This can speed up repayment and save significant money in interest over time. But refinancing also comes with trade-offs: you give up access to federal benefits like IDR flexibility, PSLF eligibility, and potential new programs (such as RAP). For many dental graduates, the best approach is to weigh both the short-term benefit of lower rates against the long-term value of keeping federal protections. Making this decision with your career goals in mind is key to avoiding costly missteps.

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Step 1 Consolidate Dental School Loans to Move Them Into Repayment

After graduation, most of your federal loans shift into a grace period, while Grad PLUS loans technically enter repayment right away. Consolidating removes the grace period and brings all of your loans into repayment together, with one servicer to manage instead of several.

This matters because only loans in repayment can qualify for income-driven plans and benefit from interest subsidies. Even if your calculated payment is $0 during residency, consolidation ensures your loans are positioned to limit interest growth and are ready for the upcoming RAP plan.

For the small number of residents pursuing nonprofit or academic dentistry, consolidation also starts PSLF eligibility. For everyone else, the main advantage is reducing complexity and preventing unnecessary interest buildup during the training years.

Learn More About Consolidation

Step 2 Know Your Recertification Timeline

When you enter repayment, your servicer assigns a recertification date—the deadline for updating your income and family size each year. Many dental residents have had their dates pushed out into 2026 or later, but those timelines can shift as new rules are rolled out.
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Your recertification date determines which tax return or income documentation is used to calculate your monthly payment. Filing taxes at the right time—or using a pay stub or employer letter instead—can make a big difference in how low your payments are set during training.

Tracking this date ensures you don’t miss deadlines, get hit with a higher “standard” payment, or accidentally reset your plan. A little planning around recertification can save thousands over the course of residency.

Learn More About Income Recertification

Step 3 Manage Interest Growth and Prepare for RAP

For most dental residents, the biggest challenge isn’t the monthly payment—it’s how quickly interest adds up on large loan balances. Even with low or $0 payments under IDR, unpaid interest can pile up every month and make the debt grow fast.
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The SAVE plan’s interest subsidy ended on August 1, leaving residents without relief in the short term. The upcoming RAP plan, expected in 2026, is designed to change that by adding strong interest protections that could bring your effective interest rate close to 0% during residency.

By understanding how your loans grow now and positioning them for RAP, you’ll be ready to capture those benefits when the new rules arrive. Until then, recognizing the lack of subsidies today helps set realistic expectations and keeps you focused on long-term savings.

Learn More About IDR Plans

Step 4 Understand How Income Affects Payments

During residency, your income may come from a base stipend, moonlighting, or a mix of both. Because these amounts can fluctuate, how you document your income makes a big difference in the monthly payment your servicer calculates.
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Tax returns reflect last year’s income, which may be lower than what you earn now. Pay stubs, on the other hand, can include extra shifts that aren’t guaranteed. In some cases, an employer letter showing only your base salary provides the most accurate picture of your ongoing income.

Being thoughtful about which documentation you use—and the timing of when you submit it—helps you keep payments as low as possible. This allows you to focus on training without overpaying during the years your cash flow is tight.

Guide to loan repayment (https://studentaid.gov/manage-loans/repayment/repaying-101)

Guide to loan repayment

Step 5 Consider Career Path and Long-Term Strategy

Dental residents face different repayment paths depending on whether they pursue nonprofit or academic dentistry versus private practice or ownership. Only a small percentage will qualify for PSLF, so most will need to plan around income-driven repayment during training and a transition strategy after residency.
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Refinancing is one option once you complete training, especially if your income rises quickly and you can secure a lower interest rate than your federal loans carry. This can save money in the long run and help you pay down debt faster.

The trade-off is giving up federal benefits—like IDR flexibility, forgiveness programs, and the upcoming RAP subsidies. Deciding when or if to refinance should be tied closely to your career path, income stability, and financial goals.

Need more guidance? Talk to us.

Step 1 Revisit Your Loan Strategy After Training

The repayment plan that worked during residency may not be the right fit once you’re earning as a practicing dentist. Higher income can push your payments much higher under IDR, and some plans available during training may no longer be the most cost-effective.
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This is the stage to step back and review whether your current plan still matches your financial goals. For some, IDR may still provide needed flexibility. For others, transitioning to a different plan—or preparing for RAP when it arrives—can better align with higher earnings.

Revisiting your strategy now helps you avoid overpaying, keeps your loans on track, and ensures your repayment approach works with your career path, whether that’s private practice, ownership, or academic dentistry.

Repayment 101

Step 2 Understand the Role of RAP (Coming in 2026)

With the SAVE plan ending, many dentists are waiting to see how the new RAP plan will change repayment. RAP is expected to limit unpaid interest, which could keep loan balances from ballooning even when monthly payments don’t cover all of the interest.

For practicing dental professionals with high incomes, RAP may not reduce monthly payments much, but it could dramatically lower the long-term cost of carrying large Grad PLUS or unsubsidized balances. This makes it an option worth understanding, even if your career path points toward aggressive payoff.

By preparing now, you can position your loans to take advantage of RAP once it becomes available. Knowing how it fits into your repayment strategy will help you decide whether to stay in federal programs or eventually look at refinancing.

IDR Plan Details

Step 3 Weigh the Long-Term Path of IDR Forgiveness

For many dentists, aggressive payoff or refinancing is the first option considered, but income-driven repayment (IDR) forgiveness can also serve as a long-term backstop. After 20–25 years of payments, any remaining balance is forgiven, regardless of size.
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While IDR forgiveness doesn’t eliminate debt quickly, it provides flexibility for those with unpredictable income or slower practice growth. It can also free up cash flow in the earlier years of your career when you may want to prioritize practice ownership, savings, or family expenses.

The trade-off is that forgiveness may come with a taxable event, requiring planning to set aside funds for that future bill. Understanding this path now allows you to keep it in the background as an option, even if you pursue more aggressive strategies first.

IDR Forgiveness Info

Step 4 Evaluate Refinancing Opportunities

With a steady income, refinancing can look appealing—especially if you can lock in an interest rate lower than what your federal loans carry. For dentists with large balances, this can save tens of thousands of dollars over the life of the loan.
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But refinancing also comes with trade-offs. Once you refinance, you leave the federal system and lose access to income-driven repayment, IDR forgiveness, RAP protections, and any future federal relief programs. That flexibility can be valuable, especially if your career path or income changes unexpectedly.

The key is timing. Refinancing too early can close off options you may need later, while waiting until your income stabilizes or your practice grows can make the choice much safer. Carefully weighing both the benefits and risks ensures you don’t give up more than you gain.

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Step 5 Balance Loan Payoff With Other Investments

As a practicing dentist, you’ll face choices about whether to aggressively pay down loans or direct funds toward other goals like practice ownership, retirement, or personal investments. Each option has trade-offs, and the right answer depends on your priorities and financial situation.
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Aggressively paying down loans offers guaranteed returns by reducing interest costs and shortening the life of your debt. But channeling all cash into loans can also delay opportunities like buying into a practice or investing for long-term growth.

The best approach often blends the two—making steady progress on loans while also setting aside resources for career and personal milestones. Aligning loan repayment with your broader financial plan ensures you’re not just debt-free sooner, but also building wealth along the way.

Need more guidance? Schedule two free 1-on-1 consultations with us.