Q&A: Your student loan questions, answered

ADA, KeyBank host webinar on One Big Beautiful Bill Act

Attendees asked more than 60 questions during a January webinar on the One Big Beautiful Bill Act and its implications for dentists and dental students.

Hosted by the American Dental Association and Laurel Road, now KeyBank, the webinar can be viewed in its entirety on the ADA’s YouTube page.

Below is a selection of questions from the event with updated responses from student loan experts Joe McGrath and Amelia McCabe of KeyBank. The answers are current as of late March.

KeyBank is endorsed by ADA Member Advantage to provide student loan refinancing services to ADA members, who can schedule a free 30-minute consultation with a student loan specialist to discuss their specific questions. The specialist will review their student loan history, analyze their repayment and forgiveness options, and help them create a personalized plan.

Q: What happens to people halfway through income-driven repayment on the Pay As You Earn plan? Do they maintain, worsen or improve their terms?

A: All the income-driven repayment plans depend on your income and family size. The monthly payment changes based on those aspects. Sometimes the payments do not cover the interest for the month, which means there is an outstanding interest.

Q: I am almost seven years into Public Service Loan Forgiveness for professional loans that are more than $200,000. Will only $200,000 be forgiven when I’m done?

A: Once the 120 qualified payments and 10 years of employment are completed and the last Public Service Loan Forgiveness application is submitted, the outstanding interest and principal will be discharged.

Q: Will the interest we have accumulated be capitalized again when we are forced to switch to a new plan?

A: There could be a chance that interest will capitalize with switching to a new repayment plan whether it is forced or not. If you are on the Income-Based Repayment plan, your interest will be capitalizing with changing repayment plans or missing recertification deadlines (just a few examples).

Q: If I enroll in the Pay As You Earn plan before 2028, will I qualify for it for the next 20 years before forgiveness?

A: The Pay As You Earn plan will no longer be available after July 1, 2028, so that means anybody on that plan and the Income-Contingent Repayment plan will need to move to a different repayment plan before July 1, 2028. If they don't, they will be moved to the Repayment Assistance Plan.

Q: If I am on the Pay As You Earn plan, will I be kicked out of it?

A: Borrowers will eventually be removed from Pay As You Earn because the repayment plan will no longer be available. The only original income-driven repayment plan that will be grandfathered in is the Income-Based Repayment plan.

Q: If I am currently on the Pay As You Earn plan and it is going away in 2028, that means I have to transition to something like the Income-Based Repayment plan. Will the years I was on Pay As You Earn transfer to Income-Based Repayment?

A: Yes, the time on any of the respective income-driven repayment plans will transfer toward the new plan and forgiveness time frame. The time won't start over.

Q: For those of us who are in Public Service Loan Forgiveness and are more than halfway done (expected completion 2027) but were in Saving on a Valuable Education plan limbo, is it in our best interest to change our repayment plan ASAP or wait? Will buyback still be available or reliable?

A: We recommend reviewing options for what the payment would be on a new income-driven repayment plan and if that is affordable to start right away. If it isn't in the best interest right now or you want to wait for a final decision, then having all the information to help make the decision is in your best interest. As of now, Public Service Loan Forgiveness Buyback is not going anywhere, but any results for the Saving on a Valuable Education plan are not being processed right now until there is a decision on what will be done. The buyback requests are also taking a long time to process as of now, but that could change.

Q: Is it possible to switch between income-driven repayment and standard repayment plans or start with income-driven repayment and switch over to KeyBank to refinance after a few years?

A: You can switch between different income-driven repayment plans, but it is not advised to do that frequently, if at all. You should make sure you enroll in the right plan for you from the offset to avoid possible issues and errors that can occur down the road, which would jeopardize your forgiveness. You can refinance later, which will take you out of income-driven repayment and assign you a new private student loan with a payment term of your choice.

Q: The only dental schools in my state are private and charge $400,000 in tuition. I understand we will only be able to take $200,000 in federal loans. Best advice?

A: Once you reach the cap for federal student loan origination, you will be required to take out private student loans.

Q: Can you please explain parent borrowing? I begin dental school in the fall and will need more than the $50,000 per year limit. Would a parent be able to borrow in addition to my own federal student loans? Can each parent apply for a Parent PLUS Loan individually if married?

A: With the new loan limits starting July 1, 2026, due to the One Big Beautiful Bill Act, parents are only able to take out the full limit of student loans for one student. Both parents can take out student loan debt for the same child, but once the limit is reached, they can't anymore. The limit is $20,000 per academic year and a maximum of $65,000.

Q: As a fourth-year dental student, when is a good time to schedule a student loan consultation — while still in dental school or after repayment options are clearer?

A: We are happy to have a consultation once you’ve taken out all the loans you’ll need to originate for schooling and have begun your residency or career.