A Guide to Dental Student Debt ASDA Advocacy presents A Guide to Dental Student Debt

What’s the issue? Student debt has become a forefront issue in this country as the cost of education is on the rise with no signs of slowing. It has become essential for students entering repayment to be diligent financial managers. *Survey was conducted by American Dental Education Association.

Not only is the average amount of debt increasing, but the number of students with debt is increasing. This high level of debt can jeopardize a new dentist’s ability to choose their preferred career path. *Statistics were taken from ADEA’s Survey of Dental Seniors and ADEA’s Money Matters, Educational Debt webpage, in 2016.

How did we get here? Continued rise in tuition costs. Continued decline in higher education funding from: Federal government State and Local funding Education institutions Notes: In 1975, private and public schools received nearly 65% of their total revenue from federal and state funds. Tuition accounted for less than 17%. In 2014, tuition and fees accounted for more than 37% of dental school revenue. State and local funding dropped to 14% while federal funding is below 1%.s:

ASDA’s F-4 Student Debt policy Encourages congress and state legislatures to introduce and pass measures that: Reduce student loan interest Provide more options for loan forgiveness Offer scholarship opportunities Strengthen regulations to protect student loan borrowers Notes: ASAD’s E-4 policy: Expansion of the tax deductibility of interest on debt, scholarships and loan repayments; The reduction of student loan interest rates; Improved access to public service loan forgiveness programs; Loan forgiveness of tuition for students and residents practicing in underserved areas; Scholarship opportunities for students and residents practicing in underserved areas; Tax deductibility and rebates for dentists practicing in underserved areas; Prohibiting the compounding of interest during loan repayment and the capping of interest rates upon graduation; Strengthening regulations for the protection of private student loan borrowers. ASDA supports legislation providing tax exemptions for scholarships awarded to dental students under federal programs. ASDA encourages state dental societies to make increasing state funding to dental schools a legislative priority. ASDA encourages state dental societies to dedicate funding to scholarships for dental students.

ASDA’s Initiatives: 2017 More than 400 ASDA members participated in the ADA Dentist and Student Lobby Day. Sent more than 200 letters to members of Congress urging them to co-sponsor the Student Loan Refinancing Act.  ASDA signed coalition letters: Supporting the Student Loan Refinancing Act. Outlining principles to include in the Reauthorization of the Higher Education Act. Supporting the Student Loan Refinancing and Recalculation Act. Notes: At the ADA Dentist and Student Lobby Day: Attendees lobbied to include certain principles in the Reauthorization of the Higher Education Act. They urged lawmakers to consider measures that would alleviate the excessive burden of student debt, allow for refinancing when interest rates change and remove barriers for dental students wanting to pursue careers in public service.

ASDA’s Initiatives: 2016 ASDA, with other dental organizations, sent a coalition letter supporting the Post Grad Act. More than 380 ASDA members participated in National Dental Student Lobby Day: H.R. 649 ASDA members sent 2,346 letters to members of Congress. Forty co-sponsors signed this bill while ASDA advocated for it. H.R. 4223 ASDA members sent 1,871 letters to members of Congress. Twenty-seven co-sponsors signed this bill while ASDA advocated for it. Notes: ASDA monitors legislation affecting student debt. At the National Dental Student Lobby Day, students lobbied for to meet with national legislators and to lobby to reduce the burden of student debt. Attendees lobbied for H.R. 649, the Student Loan Refinancing Act and H.R. 4223, Protecting Our Students by Terminating Graduate Rates that Add to Debt Act. Post Grad Act (H.R. 4223): amends title IV (Student Assistance) of the Higher Education Act of 1965 to make graduate and professional students eligible to receive subsidized Stafford Loans under the Federal Direct Loan Program beginning on July 1, 2016 (Congress.gov). H.R. 649: Amends title IV (Student Assistance) of the Higher Education Act of 1965 to allow a borrower of a loan under the William D. Ford Federal Direct Loan program to modify the interest rate on such a loan so that its interest rate is equal to the interest rate it would bear if first disbursed at the time of modification (Congress.gov).

Debt resources ASDA’s Paying for Dental School page Chapter presentations on student debt  ASDA’s Scholarships page Summary of state student loan repayment programs updated annually from ADEA Infographic on ways to save money while in dental school Notes: Here are some resources ASDA has created or recommends students review to help manage their debt. Paying for Dental School page: includes a Debt 101 guide, details about student loans, a glossary of financial terms, and how to finance and budget for your dental education.

What can you do? Stay informed ASDA Engage website Advocacy Brief ASDA’s advocacy alert system. Advocacy Brief ASDA’s monthly newsletter devoted to legislative updates. Participate in Advocacy Month each November Attend ASDA’s national lobby day Notes: We encourage you to get involved and have a voice in this issue. Here are a few ways: Sign up for Engage to receive alerts on important bills, send letters to your representatives with a few simple clicks and read up on issues affecting your state and the profession. Stay up to date on student debt developments by reading Advocacy Brief, an electronic publication sent once a month. Attend ASDA’s National Dental Student Lobby Day held annually in DC in the spring. ASDA provides training on the issues and how to lobby on the first day. The second day is spent meeting with legislators.

Advocate for your future ASDA’s Council on Advocacy Email advocacy@asdanet.org to determine what you can do to advocate for your future.

Questions?