How to pay off your dental school student loans faster (and save money)
Editor’s note: This is the second article in a fall financial series of New Dentist Now blog posts from Darien Rowayton Bank, which provides student loan refinancing and is endorsed by the American Dental Association. Qualifying ADA members receive a 0.25% rate reduction to DRB’s already low rates for the life of the loan as long as they remain ADA members. View rates, terms and conditions and disclosures at student.drbank.com/ADA.
Are you excited about your earning potential as a dentist but overwhelmed by the financial investment required to pay for your dental degree? You’re not alone. Many new dentists are questioning when they should begin their plans for the future (like buying a practice, getting married, buying a home) because of their student debt loads.
According to the American Student Dental Association, 75 percent of dental school graduates are over $100,000 in debt. In fact, the average new dentist comes out of dental school more than $241,000 in the hole, according to the American Dental Education Association.. And it’s a growing concern: Student debt among dentists has doubled since 2001.
Fortunately, student loan refinancing can help new dentists get out from under their educational debt sooner than expected.
Student Loan Refinancing Fast Tracks Your Student Debt Reduction
You should check and make sure it is the right option for you, but refinancing your dental school loans at a lower interest rate can reduce your monthly payments and help you pay off your debt faster.
When you took out loans for dental school, especially if they were federal loans, you were most likely given the same interest rate as everyone else who applied for student loans at that time. Since federal lenders don’t consider things like a borrower’s ability to pay off the student loan, you as a dentist in a high earning profession are paying more on your interest rate than you should be paying. This “one-size-fits-all” interest rate model allows the federal government to mitigate its risk against those borrowers who might not be able to pay their student loans.
Private student loan refi lenders, like Darien Rowayton Bank, look closely at borrowers’ credit scores, job and financial history, degree type, and income to determine interest rates. If you’re solid in all these areas, you may qualify to refinance your student loan at a lower interest rate than the one you have now. A lower interest rate means you pay less every month or you pay off the student loan faster—or both, depending on the repayment term (length) of your new loan.
Student Loan Refi: A Special Discount for ADA Members
The American Dental Association understands that student loan debt is a critical concern among its members, especially new dentists. That’s why the ADA has teamed up with DRB Student Loan to offer a special student loan refinancing discount to members.
If you’re an ADA member, you’re eligible for an exclusive 0.25 percent reduction on whatever student loan refinancing rate you quality for with DRB. The discount is good for as long as you’re an ADA member.
DRB refinances federal and private dental school loans. It’s free to apply, and there are no origination or prepayment fees involved. Learn more about what rate you qualify for or get in touch with a loan-refinancing expert at DRB. To read more about the Darien Rowayton Bank student loan refinancing program, go here.
DRB (Darien Rowayton Bank) is a national bank, marketplace lender and the fastest lender in industry history to reach $1 billion in student loan refinancings. FDIC insured and established in 2006, DRB Student Loan has helped thousands of professionals with graduate and undergraduate degrees across the country to refinance and consolidate federal and private student loans, saving these borrowers thousands of dollars each.
DRB’s student loan refinancing program has been endorsed by the ADA. For more information about the program, visit https://student.drbank.com/ADA