Proposed tax bill raises concern for ADA

Association praises one measure pausing interest accrual for dental residents

ADA leaders are expressing concerns over a tax bill that proposes cuts to student aid programs. 

The bill aims to lower costs of higher education and reduce the federal budget deficit, but the Association said the proposed cuts to student aid programs are overly broad and would negatively impact the dental community. The House Education and Workforce Committee’s markup of the Student Success and Taxpayer Savings Plan will be included in the upcoming budget reconciliation package. 

“We have concerns about the cuts and changes to student aid programs outlined in the bill, as these provisions pose a serious risk to the dental workforce and the high standards of oral health care that Americans expect,” ADA President Brett Kessler, D.D.S., and Elizabeth Shapiro, D.D.S., J.D., wrote in a May 5 letter. 

In the letter, Drs. Kessler and Shapiro expressed disappointment with the bill, aside from one provision that pauses interest accrual for dental residents. The ADA has consistently supported programs to bolster student aid and reduce academic disparities, including the Public Service Loan Forgiveness program, National Health Service Corps’ Students to Service program, Faculty Loan Repayment program, and Indian Health Service Loan Repayment program. 

The Association supported a measure in the Student Success and Taxpayer Savings Plan that stipulates zero interest accrual on deferred federal loans for medical and dental residents for up to four years. 

Leaders opposed a provision to cap federal student aid at the “median cost of attendance,” stating this runs counter to tested student aid models and will leave many dental students with insufficient resources to attend higher-cost dental programs. 

The bill’s proposal to eliminate Grad PLUS loans and restrict Parent PLUS loans “will put dental school out of reach for thousands of students and could pose serious risk to the dental workforce,” Drs. Kessler and Shapiro said. Seventy-six percent of dental students utilize Grad PLUS loans either as a stand-alone financing mechanism or in addition to Direct Stafford Loans, according to the Association. 

Additionally, the Student Success and Taxpayer Savings Plan would reduce nearly a dozen loan repayment plans down to two plans known as standard repayment plans and repayment assistant plans, which the Association said “could increase monthly payments and loan lengths while reducing flexibility for borrowers.”

ADA leaders also expressed concern over a provision in the bill that would exclude dental and medical students with commercial loans from participating in the Public Service Loan Forgiveness program. 

“Placing restrictions on [the Public Service Loan Forgiveness program] for dentists could hamper public health efforts, reduce military readiness, and harm the domestic workforce,” the ADA said.

Finally, the ADA objected to a measure that aims to “create skin-in-the-game” accountability for colleges by requiring institutions to reimburse the secretary for a percentage of the nonrepayment balance associated with certain loans. This could have unintended consequences for dental schools, according to the ADA, and this risk sharing process poses unnecessary challenges for institutions and students.  

“We appreciate the committee’s goal to make higher education more affordable, but we believe that the cuts presented will ultimately prove detrimental to American students,” the dentists wrote. “We would support any effort to find compromise to protect these crucial programs, and we are always ready to offer the ADA’s input and collaboration. We respectfully ask that you keep these thoughts in mind as the reconciliation process continues.”