Student Loan Spotlight: How dentists can navigate new federal student loan changes
Managing student loans and dental school debt can be a significant source of financial stress, especially early in your career. Add to that the additional uncertainty of new legislation that makes navigating student loan debt even more complex. While recent federal student loan legislation will impact current repayment options, there are still several new plans that can help dentists manage their dental school debt. Here’s what you need to know about recent changes.
What student loan changes are part of the One Big Beautiful Bill Act?
The One Big Beautiful Bill Act was signed into law on July 4, and the legislation introduces new repayment plans, adjusts borrowing limits and redefines eligibility for forgiveness through income-driven repayment plans. Traditionally, these plans have helped stabilize monthly student loan payments based on the borrower’s current discretionary income and family size. Unlike other programs, 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.
Under the new legislation, the number of income-driven repayment options will be reduced from five plans to two, and the One Big Beautiful Bill Act will phase out several existing repayment plans, including the Saving on a Valuable Education, Pay As You Earn and Income-Contingent Repayment plans. Current borrowers enrolled in these eliminated programs will have until July 1, 2028, to switch to a new plan. From the existing plans, only the Income-Based Repayment Plan will remain after June 30, 2028.
What you need to know about the new income-driven repayment plans
Beginning on July 1, 2026, new student loan borrowers will choose between one of two plans: a standard repayment plan or a new plan called the Repayment Assistance Plan. The new Repayment Assistance 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, while the new standard repayment plan calculates monthly payments based on the borrower’s loan balance and interest rates, ranging from 10-25 years. For more information on these new options, visit studentaid.gov.
Find dedicated student loan guidance
Understanding how to tackle dental school debt effectively could save you time, stress and 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 and understand how these new regulations may impact your repayment or forgiveness options. ADA members can talk to a Laurel Road student loan specialist with a free student loan consultation and get expert 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.
