Endodontist Student Loan Repayment Options | Student Loan Planner


Endodontists have a hard time when it
comes to student loan debt, because not only do they need to go through four
years of dental school, they then have to go through a two or three year residency
program, where sometimes they might even accumulate additional debt. How does this
all happen? Well as you might know, you have to go through four years of dental
school and take out dental school level student loan debt. Our typical dentist
has got debt averaging about three hundred seventy thousand dollars. Of
course that range is a lot, from maybe two hundred thousand for an in-state public
university, to five hundred fifty thousand or more in a high-cost private
school in a big city with really high living expenses. So if you take that kind
of a debt and then you have somebody go to residency program, let me tell you
what most endodontists do: they defer. They don’t make any payments. They let
their interest grow and they build no credit towards loan forgiveness during
this two or three years during residency. So during that period the debt continues
to grow, in some cases even though many endodontists will get a stipend of some
sort during residency training because of fees that they might have to pay. They
might take out additional debt during that residency training and have even
more student loans overall. The typical amount of debt that we’ve seen for
endodontics clients really ranges but it’s often over $400,000. How do you deal
with that kind of debt when you might come out, and you might make a really
good income You could make maybe thirty, thirty-five thousand a month as some of
our endodontist clients do, but then again, you might also only make low 200s
or maybe in the worst case even lower than that. If you’re living in a big city
with lots of supply of endodontists like in Southern California or in New York City.
So the goal is that you would live the life that you want to. Let me explain. So for
example, let’s say that you’re an endodontist in Texas and you’re making
tons of money, you don’t have a state income tax. Your debt to income ratio is
maybe about 1.3 to 1 so let’s say you have four hundred thousand in
student loan debt and maybe you’ve got three hundred something thousand dollar
income. You know that you want to pay this back, but you’re not exactly sure
when you should do it. When you come right out of school, what I would suggest
is if you know you want to pay your loan debt back, then you want to try to
get into a REPAYE Program, Revised Pay As You Earn. Preferably, you want to get into
this right when you’re in training. When you’re in training doing the Revised Pay
As You Earn Program, you’ll be able to basically get interest subsidies, which
is going to lower the effective interest rate on your loans. Deferment is a
terrible mistake if you’re in an endodontics residency program. We see
people making all the time and it’s usually a low five figure mistake to do
that. Now, when you come out of residency you should already have a couple years
of credit towards loan forgiveness, but you’re not going to need that because
you’re paying it off. You’re gonna have a lower loan balance. Now, if you’re going
to set up your own practice, I would recommend that you wait to refinance
until that’s already finished. However, if you are just working different offices
and you plan that to be your typical path that you’re gonna have
for your career, you don’t have an aspiration to set up your own practice,
then I would say get your loan balance down to like, one times your
income and then try to refinance that thing. You want to shop around at least a
couple lenders. We have refinancing bonuses that are among the best anywhere
you’ll find on the internet. So you could shop around. Ask us for advice if you’ve need help. My email, by the way, is [email protected]
if you have questions about endodontic student loan debt. Now, that’s a good
strategy if you have a reasonable debt to income ratio. However, what happens if
you’re in California and you owe six hundred thousand as an endodontist
because you went to Pacific dental school and you also went to a high cost
residency program with a low stipend. In that case, your debt to income ratio,
let’s say it’s 2.5 to 1, is not going to lend itself well to
actually paying that debt off. In that case you want to go for something like
loan forgiveness. In this particular case you could use the Pay As You Earn
Program and pay for 20 years. You might pay maybe 50% of the actual loan balance
over those 20 years in actual dollars, and then at the end of that 20 years you’d
know taxes on that forgiven balance as if it was income. So in other words, if
you had a big forgiven balance you’d have to pay maybe forty or fifty percent
income taxes on that forgiven balance. Now, if you look at the present
value of that math, that can be a very attractive strategy if you have
endodontic level student loan debt. And the goal here is to minimize the
cost. You could work part-time if you want to maximize lifestyle, you can buy a
house. We suggest you buy a house no more than two times your income if
you have a big student loan debt from endodontics programs. There’s a lot of
different things that you can think about. The key is to get a plan. And Student Loan Planner, we’re experts in developing those plans for endodontic
level student loan debt. Getting a plan does not have to feel like a root canal.
You don’t have to dread it. You don’t have to worry about it like the general
public does. We’re probably the only group in the country that has advised
multiple endodontists about how to figure out their huge student loan debt.
So just visit the article, click on the contact button. Reach out to us, we would
love to hear your story. Love to hear what’s on your mind, and we would love to
get a plan for you to pay back your endodontist student loans.

1 thought on “Endodontist Student Loan Repayment Options | Student Loan Planner

  • Best student loan content anywhere on the internet. Very surprised there aren't more views. I'm sure they will come.

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