Sample repayment amounts

The following are estimated repayment amounts using the  AAMC/ADEA Dental Loan Organizer and Calculator, with the following assumptions: 

• $300,000 total student loan debt ($162,000 Stafford, remainder in Grad PLUS).
• Interest rates based on disbursement dates for Class of 2019 graduates.
• No aggressive repayment.
• Starting salary of $180,000 (used for Pay As You Earn [PAYE] repayment plans).
• Single and family size of one (used for PAYE repayment plans).
• There are multiple income-driven repayment plans, we used PAYE as just one example.

Standard 10 year

• $3,544 per month for 10 years.
• $425,221 total repayment.
• $125,221 total interest cost.

Extended 25 year

• $2,066 per month for 25 years.
• $619,654 total repayment.
• $319,654 total interest cost.

Pay As You Earn

• Payments range from $1,336 per month (for first 12 months) to $2,483 per month during last month of repayment (payments change annually with income-driven repayment plans).
• $432,143 total repayment.
• $256,245 remaining balance at end of 20-year term is forgiven, but taxable.
• $188,134 total repayment over 10 years with $329,667 forgiven tax free for borrower if is enrolled in and qualifies for Public Service Loan Forgiveness.

Note the following with regard to the repayment estimates above:

• Repayment estimates reflect 0% interest on Direct Loans for approximately two years due to the CARES Act.
• There is no penalty for aggressive payments over the minimum required amount. So, for example, a borrower choosing Extended 25-year plan could overpay and thus not only reduce the repayment period but the overall interest costs
• Monthly interest cost approximately $1,606; note monthly payments under both Standard 10-year and Extended 25-year cover more than the outstanding interest, therefore the principal balance comes down immediately when using these time-driven repayment plans.