Your financial future is not yet certain. But it helps to plan ahead.
You've worked hard and made important strides in four years of dental school. As you approach the finish line, you're focused on the future:
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What type of job (e.g., private practice, DSO) will position you for the career in dentistry you want?
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Where will your new career take you — big city, college town, back to your hometown?
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How will you achieve a work-life balance that keeps you sane?
You're likely also worried about paying off loans. The average educational debt for indebted
2020 dental school grads was over $304,000.1 You might be one of the lucky few who
didn't have to borrow. But if you did take out loans, chances are you've considered how
they'll impact your life decisions.
Think of your debt as a giant block of ice. It's cold and solid and intimidating, but eventually
it's going to melt. You can simply accept it as one of the bills you'll have to pay every month
and whittle it down to zero over 10, 15 or 20 years. Or, if that's not your style, you can
make the effort to knock it out as fast as you can.
Your financial future is not yet certain. But it helps to plan ahead. The short quiz below can
clarify which approach to debt repayment best suits you — keep track of your answers as
you go along.
Take The Quiz
A. Prioritize paying off your loans as fast as possible
B. Wait to figure out your financial picture until you get a job and make progress on personal goals
2. Which of these comes closest to describing you?
A. You want to maximize your income and minimize your expenses
B. Money is not your main focus, at least not yet
3. Are you willing to work extra hours or make lifestyle sacrifices (e.g., smaller apartment, no vacations)
to pay off your student loan quickly?
A. Yes – paying down debt is the #1 focus
B. No – you don't want your debt to define your choices
4. Would you consider practicing dentistry in an underserved area or in the military in exchange
for debt relief or forgiveness?
A. Wouldn't be your preference, but you might consider it for the sake of saving money and eliminating debt faster
B. Definitely not
C. Absolutely – the service aspect appeals to you, and/or you want to learn in a challenging environment
If you answered:
All A's – You're a Blowtorch
All B's – You're a Chiller
Mix of A's, B's, and C – You're a Sculptor
Any other combination – You're still weighing your options.
What it means to be a Blowtorch, a Sculptor or a Chiller.
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You have big plans professionally and personally that require a solid financial foundation:
buying a home, owning a dental practice, traveling, paying for children's education, etc. You want
to quickly get to the point where more of your income goes toward things you want and need
instead of endless loan payments.
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You're focused on establishing yourself as a dentist, growing professionally and setting
yourself up for a financially secure future. You have routines in your personal life that you
don't want to upend for the sake of faster debt repayment. You're fine with paying the minimum
scheduled amounts, at least for the first few years.
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An opportunity to wipe out a significant portion of your dental school loans in return
for public service is tempting — maybe even irresistible.
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Budgeting wisely.
Consider living with your parents or roommates or in a less expensive area. Keep driving
your current car or buy a used one. Don't eat out at restaurants too often, go on expensive trips or
invest in the newest cryptocurrency. Or, if you do want a lifestyle that's
flashier, make sure you're earning enough to afford those expenses while making higher-than
minimum loan payments.
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Focus on other priorities first.
That block of ice stays cold as it melts on schedule. You're fine with just chilling for now.
You have enough on your mind with getting a job, deciding where you'll live and trying to enjoy
life after dental school.
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Take advantage of a government debt relief program.
Sculpt that ice block of debt into a more manageable shape and size by choosing to
practice dentistry in a "health professional shortage area" (HPSA) or in the military. With a few
years of service, you can eliminate tens of thousands of dollars in debt.
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We're here to make your life easier
Your financial picture can be complicated, whether it's paying your debt or safeguarding your
earnings with the right insurance plan. At ADA Members Insurance Plans, offered by
Protective, we help dental students and practicing dentists protect their lifestyles and
businesses. In fact, that's all we do.