Student loan consolidation for ADA members Managing Student Debt Student loan consolidation for ADA members

Managing student debt You all know that student debt is a reality! The average student debt after graduation is about a quarter of a million dollars. And we know many students graduate with more than that. Grace periods are typically 6 months so you’ll have a short amount of time to financially prepare to repay your loans. You'll want to choose a repayment strategy and start as soon as possible.

Loan consolidation with DRB Laurel Road: ADA-endorsed student loan consolidation program Qualifying ADA members receive an additional 0.25% interest rate reduction In September 2015, the ADA announced a new benefit designed to help dentists manage their debt. We looked at a number of options and ultimately decided to exclusively endorse the student loan consolidation/refinancing program with a bank called DRB. They have since rebranded to Laurel Road. This program is for ADA members to refinance existing federal and private undergraduate and graduate school loans at a 0.25% lower rate than DRB’s already low rates. This reduced interest rate is ONLY available to ADA Members! Laurel Road is a division of Darien Rowayton Bank, an FDIC insured bank based in Darien, CT. DRB has already consolidated/refinanced over $1 billion dollars in student loans from all 50 states. ADA-specific: Saving the average member more than $33,000 dollars!

Loan consolidation with DRB Rates are low Free online application with no obligation to accept No maximum loan size Federal and private student loans are eligible Highlights of the student loan consolidation/refinance program include: • 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 • Rates for ADA members start at 1.88% variable and 3.92% fixed* (this is subject to change so it is not on the slide) • Dedicated customer service representatives • Free online application with no obligation to accept • No application, origination or prepayment fees • No maximum loan size (minimum loan size of $5,000) • Federal and private student loans from undergraduate and graduate school are eligible • Forgiven in death and documented permanent disability The ADA is forgoing any compensation from this relationship so that all of the benefit goes to the member borrower.

– Dr. David Manzanares ADA Member, New Mexico “Refinancing has been a life-changing development. It’s allowing me to escape the weight of student loans. It’s allowing me to get my life back.” – Dr. David Manzanares ADA Member, New Mexico

Who should consider consolidation? Anyone not pursuing loan forgiveness on their federal loans Anyone with private loans Anyone who is working full time Anyone with ParentPlus loans

When your practice life is underway. When can I sign up? How? When your practice life is underway. Here’s what you need: Income from dentistry Favorable monthly debt to income ratio Good credit Visit LaurelRoad.com/ADA You can apply for reconsolidation after graduation. Loans are granted based on a number of factors that are considered in any loan decision: credit history and total debt relative to total income. It’s important to be clear about what debt to income ratio means. The lender is looking at total MONTHLY debt (including credit card, car loan, mortgage, student debt) relative to total monthly income. Laurel Road is working on offering a consolidation option to dental residents so you can lower those payments right away, even while you’re in your residency.

What can I do right now? Build good credit Don’t borrow more than you need Organize your finances Self-employed dentists need to provide proof of income, pay stubs, etc. Keep your ADA membership Starting with good habits now will make it a lot easier to qualify for loan consolidation once you start practicing. Building good credit… start somewhere. Pay your bills on time. Get a credit card and make monthly payments. Your debt to income ratio is going to look a whole lot better without a hefty car payment, large mortgage or credit card debt. Be smart about what you borrow now. And be organized. Keep your financial documents in a safe place and in an organized manner. And of course, stay a member of the ADA.

Know your options Check out your options Consolidation may or may not be for you Laurel Road is one program available. There are other loan consolidation programs available. Look at your options and decide what makes sense for you. Your state dental society may endorse a program as well. And you may not want to consolidate at all depending on your student loan types and rates.

Other resources Budgeting 101 ADA.org/mydebt Center for Professional Success State or local dental society Talk to a financial advisor There are a lot of resources out there to help you get started on the right financial footing. Look at budgeting programs, like You Need a Budget or other online tools to help you track your monthly expenses. CPS is a great site for members with a lot of information for dentists, including loan calculators. Your state or local society may have educational programs available or endorsed products or services. Talk to your colleagues. Ask around. Feel free to reach out to your volunteer leaders, like me. We have a New Dentist Committee with representatives across the country – they can be a good place to start. Lastly, I’ll drive home that it’s a really good idea to meet with a financial advisor before you graduate to get you on a good path. You can find contact information for the New Dentist Committee at ADA.org/newdentist or call the ADA.

Questions?