Repayment Plans and Repayment Strategies

When determining which repayment plan is right for you, remember there is never a penalty for aggressive repayment under any federal repayment plan. In addition, you can estimate repayment under all these plans with the calculators at StudentAid.gov and the AAMC/ADEA Dental Loan Organizer and Calculator (DLOC).

Time-driven

  • Payments based on a time period of either 10 of 25 years
  • Level and graduated versions available
  • Monthly payment amount has nothing to do with income, family size, marital and tax-filing status
  • Borrower is debt free at the end of the term with minimal payments (nothing to forgive)
  • In general, payments under these plans do not count as qualifying payments for Public Service Loan Forgiveness

Income-driven

  • Multiple types of plans, all tied (in part) to income.
  • Examples include Income Based Repayment (IBR) and Saving on a Valuable Education (SAVE).
  • Payments change each year when borrowers renew with updated information on income and family size.
  • In general, designed for borrowers whose debt greatly exceeds their incomes and who cannot afford payments under time-driven plans.
  • Ideal for many advanced dental education residents who are in hospital-based residency programs.