Private student loans for dental school, compared

Why private loans matter now

Since July 1, 2026, new dental students can borrow at most $50,000 a year in federal Direct Unsubsidized loans. Grad PLUS, which used to cover the rest of the cost of attendance, is closed to them.

The ADEA expects many dental students, especially the Class of 2030 and later, to need private loans to cover the shortfall. The numbers behind that gap are on how to pay for dental school after Grad PLUS.

A private loan is a contract with a bank, credit union or other lender. It has no connection to the federal government or to federal loan programs.

What you give up vs federal loans

This is the part lenders won’t lead with. A private loan doesn’t come with:

• The Repayment Assistance Plan (RAP). RAP sets payments at 1% to 10% of income and waives unpaid interest each month. Private loans have no income-based plan.
• Public Service Loan Forgiveness. PSLF is only for federal Direct Loans. A private loan never qualifies, even if you work at an FQHC or in the military.
• Federal deferment and forbearance. The CFPB puts it plainly: private lenders “are not required to offer you any relief.”
• Federal death and disability discharge. Federal loans are discharged if you die. Private lenders aren’t legally required to cancel loans on death or disability (CFPB).

The ADA’s student loan guide says the same: private loans may not carry federal protections, repayment options or forgiveness eligibility.

So the rule for most students: take federal Direct Unsubsidized loans up to the limit first. Then borrow privately only for what’s left.

What to compare

Lenders differ more than their ads suggest. Put every offer side by side on these points.

What to check	Why it matters	What to ask
Fixed or variable rate	A fixed rate never changes. A variable rate can start lower and rise with market rates.	Is it fixed or variable? If variable, what index, and is there a cap?
Cosigner	A cosigner is equally responsible for the loan, and late payments hit their credit too (CFPB).	Can I qualify alone? Is there cosigner release, and what are the criteria?
In-school payments	Interest usually builds while you’re in school unless you pay it.	Can I defer fully, pay interest only, or pay a flat amount?
Grace period	The gap between graduation and your first full payment.	How long is it? Does interest capitalize when it ends?
Residency deferment or forbearance	If you plan a GPR, AEGD or specialty residency, you may want payments paused while you train.	Is there a residency option? How long, and does interest capitalize?
Death and disability	Private lenders aren’t required to discharge (CFPB).	Is the loan discharged on death or total disability? Does it pass to my cosigner?
Fees	Origination or other fees raise the true cost.	Are there origination, late or prepayment fees?

Get the answers in writing, from the loan’s terms and conditions. The CFPB says cosigner release criteria, when they exist, are in the loan’s terms and on the lender’s website.

A worked example: what deferring costs

Say your gap for D1 is $45,000, and you borrow it privately.

Example: $45,000 at 8.0% fixed APR, fully deferred for four years of school plus a six-month grace period. Not an offer; your rate depends on credit, and many loans are variable.

• Interest per year: $45,000 × 8.0% = $3,600.
• Over 4.5 years: $3,600 × 4.5 = $16,200 of unpaid interest.

If that interest capitalizes when repayment starts, your balance becomes about $61,200. You’d then pay interest on the $16,200 too.

Paying the interest as it builds would be $3,600 ÷ 12 = about $300 a month in this example. That’s hard on a student budget, but it keeps the balance at $45,000. Even $50 or $100 a month slows the growth.

Repeat that for four years of borrowing, and the choice between deferring and paying something adds up to five figures.

Who private loans are right for, and who should stop

Usually a reasonable fit:

• You’ve used scholarships, school aid and the full $50,000 federal limit, and there’s still a gap.
• You or a cosigner have strong credit.
• You’re fairly sure you won’t rely on PSLF or an income-based plan for this piece of your debt.

Stop and reconsider if:

• You haven’t taken the full federal Direct Unsubsidized amount yet. Federal comes first for most students.
• You’re borrowing for more than the gap. Every private dollar is a dollar with no RAP or PSLF.
• You’re planning a public-service career, such as the military, an FQHC or academic dentistry, where PSLF could matter.
• Your cosigner can’t afford to take over the payments.

If you’re grandfathered and can still get Grad PLUS, compare it with private loans carefully. Grad PLUS costs more upfront but keeps federal protections. See grandfathered into Grad PLUS?.

Where to get quotes

Get quotes from at least three lenders on the same day, for the same amount and the same repayment choice. That way you’re comparing like with like.

Lenders that make in-school loans include Ascent and College Ave. You can also compare several lenders at once through Credible.

Current advertised rates are in the dated rate table on this page. Rates change often, so check the date and the lender’s site before you apply.

What to do next

1. Confirm your gap. Use the dental school funding gap tool. Borrow only that amount privately.
2. Take federal loans first. Accept your full Direct Unsubsidized amount before applying for private loans. See federal loan limits for dental students.
3. Get at least three quotes. Use the table above and write down each answer.
4. Read the death, disability and cosigner terms. Don’t sign until you know what happens to your cosigner.
5. Decide how much interest to pay in school. Any amount you pay now is interest that won’t capitalize.
6. Plan for later. Once you’re out, private loans can be refinanced. Federal loans shouldn’t be, unless you’re sure you won’t need federal protections. See refinance vs PSLF vs RAP. Refinancing federal loans turns them into private ones and ends RAP, PSLF, federal forgiveness, and federal forbearance and deferment for those loans.