From the desk of STAC Bizness Solutions CEO, Shawna Aho

Becoming a dentist is one of the most rewarding (and expensive!) career paths in healthcare. The years of education, clinical training, and licensing are demanding enough on their own. Then comes the moment when new dentists start looking at their student loan balances and realize that the financial side of the journey is just beginning.

At STAC Bizness Solutions, we work with dental professionals every day who are balancing student debt, growing practices, and personal financial goals. Let’s look at where dental school costs stand today, what the average new dentist owes, and some smart, realistic ways to manage that debt without losing momentum early in your career.

The Rising Cost of Dental Education

There’s no question. Dental school has become dramatically more expensive over the past 15 to 20 years. According to the American Dental Association’s Health Policy Institute, the average first-year cost (tuition and mandatory fees) now runs about $47,000 per year for in-state public schools and over $87,000 per year for private programs. Add in instruments, licensing fees, and living expenses, and it’s easy to see total costs soar well past $300,000 over four years.

If you attended a private school or lived in a high-cost area, your total might be significantly higher. And these numbers have been climbing steadily each year—well above the rate of inflation.

What New Dentists Owe Today

It’s now common for new dentists to graduate with six-figure debt. The American Dental Education Association (ADEA) reports that the median student debt for indebted dental graduates in 2024 was roughly $312,000. Some graduates owe far more, especially those who financed both undergraduate and dental school tuition.

That kind of balance can feel overwhelming. It often delays other life goals—buying a home, starting a family, or opening a practice. But the truth is, with some structure and discipline, you can make steady progress while still building your career and lifestyle.

Understanding What Makes Dental Loans Unique

Dental school loans usually fall under the category of graduate or professional loans, which means they’re typically unsubsidized. Interest starts accruing as soon as the funds are disbursed, even if you’re still in school or in residency.

Many dentists postpone payments during residency or specialty training, which seems logical at the time, but interest keeps piling up. For example, a $350,000 loan at 7% interest can grow by nearly $25,000 per year if left untouched. By the time you start full payments, the balance could be tens of thousands higher than what you originally borrowed.

That’s why understanding your repayment options early matters so much.

Repayment Options: Choosing a Path That Fits

There’s no single “best” plan. It depends on your income, goals, and whether you might qualify for forgiveness.

1. Income-Driven Repayment (IDR) Plans
   These plans base your monthly payment on a percentage of your income rather than your total balance. The current SAVE plan (which replaced REPAYE) generally caps payments at about 10% of discretionary income and offers forgiveness after 20–25 years. This approach helps early-career dentists keep payments affordable while income is still ramping up.
2. Standard or Graduated Plans
   The traditional 10-year standard plan has higher payments but clears your loans faster and minimizes interest. Graduated plans start smaller and rise every two years—helpful for those expecting steady income growth.
3. Public Service Loan Forgiveness (PSLF)
   If you work for a nonprofit, public health organization, or academic institution, PSLF can be a game-changer. After 10 years (120 qualifying payments) under an eligible plan, your remaining balance is forgiven tax-free. This can make sense for dentists serving in public health clinics or universities.

Beyond the standard repayment and forgiveness, there are several programs designed specifically for healthcare professionals:

• National Health Service Corps (NHSC) Loan Repayment Program: Dentists who serve in approved Health Professional Shortage Areas can earn up to $50,000 in loan repayment for a two-year full-time commitment.
• NHSC Students-to-Service Program: Final-year dental students may qualify for up to $120,000 in loan repayment in exchange for three years of full-time service.
• State-Level Programs: Many states offer their own dentist loan repayment incentives to attract providers to underserved communities.

These programs aren’t right for everyone, but if community service aligns with your career goals, they can make a serious dent in your debt.

7 Practical Strategies to Manage and Reduce Your Debt

You don’t have to conquer your loans overnight, but you do need a plan. Here are some practical steps we often recommend to clients:

1. Know Your Numbers

Start by making a simple list of your loans: balances, interest rates, and servicers. Understanding which loans have the highest rates will help you prioritize repayment or refinancing later.

2. Make Interest Payments During Residency (If You Can)

Even small monthly payments… say $100–$200, can prevent interest from compounding. It may not feel like much, but it can save thousands in the long run.

3. Align Your Repayment Plan with Your Career Stage

If you’re just getting started, an income-driven plan may be the right move. Once your income stabilizes, you can switch to a standard or accelerated payoff schedule.

4. Refinance at the Right Time

Private refinancing can lower your interest rate significantly. But only do this once you’re confident you won’t need federal benefits like income-based repayment or PSLF. Most dentists wait until they’ve established stable earnings and built an emergency fund.

5. Use Raises and Bonuses Wisely

When you receive a pay increase, keep living expenses stable for a while and direct that extra cash toward your loans. Even an extra $500 per month can shorten your payoff timeline dramatically.

6. Balance Debt Payoff with Other Financial Goals

It’s tempting to throw every dollar at student loans, but don’t neglect retirement savings or insurance coverage. Building a foundation for your future helps you stay financially secure while paying off debt.

7. Protect Your Income

If you’re relying on your clinical skills to earn a living, disability insurance is essential. It’s one of the smartest financial moves a dentist can make, especially if you’re carrying a large loan balance.

A Balanced Mindset: Progress, Not Perfection

It’s easy to feel frustrated by large student loans, but remember that dental school debt isn’t bad debt; it’s an investment in a valuable, high-earning profession. The key is to manage it thoughtfully.

You don’t have to choose between living your life and paying off loans. You just need a strategy that evolves with your career. Start by keeping your payments affordable, limit interest growth when you can, and then accelerate repayment once your income rises.

Over time, you’ll gain momentum and every milestone (your first big loan payment, your first ownership opportunity, your first debt-free month) will remind you that you’re moving forward.

How STAC Bizness Solutions Can Help

At STAC Bizness Solutions, we specialize in helping dentists take control of their financial picture, from student loans to taxes to long-term planning. We can help you:

• Evaluate repayment and forgiveness options based on your career goals.
• Integrate your loan plan with your tax strategy and cash flow.
• Model ownership opportunities and financing decisions.
• Build a roadmap that balances debt reduction with saving and investing.

The goal isn’t just to pay off loans; it’s to create lasting financial stability while you grow your career and practice.

If you’re a dentist looking to get organized, make smart financial decisions, and move confidently toward a debt-free future, STAC Bizness Solutions can help you take the next step.