ADEA is pleased to announce another educational debt management resource designed to help promote both responsible borrowing and responsible repayment for dental school students and alumni - the AAMC/ADEA Dental Loan Organizer and Calculator (AAMC/ADEA DLOC).
Sample Repayment Amounts
Sample Repayment at $300,000
Assumptions
- $300,000 federal student loan debt
- Maximum of $40,500 direct unsubsidized and remainder Direct PLUS (formerly Grad PLUS) each year, even disbursements
- Applicable interest rates for Class of 2024 graduate, with CARES Act accommodated in rates
- Six-month window period (grace and deferment) prior to entering repayment
- $180,000 starting salary, moderate increase each year
- Single, family size of one used for repayment estimates with the income plan SAVE
- No aggressive payments and loans held to term
Repayment
| Standard | Years | Monthly Payment | Total Repayment | PSLF Paid PSLF Forgiven | Term Forgiveness |
|---|---|---|---|---|---|
| Standard | 10 | $3,580 | $427,226 | NA | NA |
| Extended | 25 | $2,094 | $622,741 | NA | NA |
| SAVE | 25 | $1,218 to $2,422 | $513,823 | $168,351 $321,428 | $238,675 |
NA = non-admissible
Notes
- AAMC/ADEA Dental Loan Organizer and Calculator used for all repayment calculations.
- Time-driven plans (Standard and Extended) are not generally considered eligible plans for Public Service Loan Forgiveness (PSLF), hence NA referenced.
- With time-driven plans, the debt is paid in full by the end of the term, thus there is nothing to forgive at the end of the term. Note that with the income plan SAVE (Saving on a Valuable Education), the debt is not retired by year 25, thus the remaining term forgiveness amount of $238,675.
- SAVE used as the income plan example to simply show how the repayment plans based on income work. AAMC/ADEA DLOC also displays another income plan called Income Based Repayment (IBR).
- Payments with SAVE are based on income and family size and change on an annual basis. Therefore, the payment range shows the initial payment upon entering repayment and the last payment at year 25.
- Under current tax law, the forgiveness amount with PSLF is not considered taxable income for federal tax purposes, while the forgiveness amount under term forgiveness is considered taxable income the year forgiven.
- PSLF Paid is the amount a borrower would pay over 10 years while making minimum payments with SAVE.
- PSLF Forgiven is the amount still remaining that would be forgiven tax-free under the PSLF program.
August 2024