Paul Garrard
PGPresents, LLC, Independent Student Loan Consultant

The Impact of Private Loans on Choice of Repayment Strategy

A recent health sciences graduate developed a repayment strategy that included making payments on his federal loans to help him qualify for the Public Service Loan Forgiveness program.  He qualified for payments under the new Income Based Repayment (IBR) plan and was starting employment in a public service position. He seemed all set.

However, when he looked at the amount he had set aside each month for his student loan payments, , he realized he had forgotten to include payments coming due on private loans he had borrowed not only in college, but also during his post-baccalaureate year prior to professional school.

His repayment strategy was derailed, and he was understandably upset, as choices he had made earlier relying on private loan borrowing were now coming back to haunt him. 

Federal Loans and Private Loans:  The Choice is Yours

Whether at the recent ADEA Recruitment Fair or perhaps from your health professions advisor, or even from a financial aid professional if you have already contacted your dental school about financial aid, you have likely heard continual references to responsible borrowing:  admonitions to budget wisely, spend accordingly, and control what you can within the confines of your student financial aid budget. You plan to do just that, yet you still face the hard reality that you need to borrow for dental school, and you may have to borrow a lot.

You see and hear what seem like horror stories about students borrowing too much, especially with private loan programs.  You see constant references to exhausting federal eligibility first before taking out private loans for school.  You hear examples like the one above and you commit that this will never ever happen to you … and then reality sets in.

You know that you can borrow up to your entire “Cost of Attendance” (your financial aid budget) each year with a combination of Federal Stafford and Grad PLUS Loans.  However, you also know these loans carry interest rates of 6.8% and 7.9% respectively, and you are intrigued when you hear private lenders offering what seem like substantially lower rates on their private student loans.

Responsible Borrowing Means Responsible Choices

As you look at your potential borrowing for dental school, ask yourself these questions before you apply for a private loan:

1. Have I exhausted not only my federal loan eligibility, but also other options, such as grants, scholarships, fellowships, and other sources of potential aid that I do not have to repay? 
2. When will this loan come due and when it does, what are my repayment options?  How do these compare with my repayment options on federal loans? 
3. Can I postpone payment on this loan if I pursue a postdoctoral program or residency after dental school, and if so, for how long?  Are there fees for doing so? Knowing the rules about postponement is extremely important, especially for programs like dentistry which offer additional study for interested graduates.
4. Can I lower the cost of this loan if I find a creditworthy cosigner? Do I want to saddle a potential cosigner with this credit obligation?  How long will this stay on their credit report?
5. Perhaps the most important question to ask involves not only the interest rate, but also the frequency at which the accrued, unpaid interest will be added back to the loan’s principal.  This process, called “capitalization,” remains—without question—the number one reason some students face enormous balances on private student loans when they enter repayment.

Don’t let a poorly planned or uninformed choice about private loans now derail your choice of repayment strategy later.  Dental school graduates have a terrific track record for responsible repayment.  With some careful planning now and responsible borrowing during school, you can do your part to continue that tradition.

Paul S. Garrard, Founder and President
PGPresents, LLC  
Consultant for ADEA

For additional information on the Public Service Loan Repayment Program and Income Based Repayment, please visit:

www.studentaid.ed.gov/publicservice

www.IBRinfo.org

www.studentaid.ed.gov/IBR

Matthew Lepowsky
Major: Biological Sciences - Pre-Dental Student
Honors Program - Combined Program in Dental Medicine
University of Connecticut School of Dental Medicine

During the school year, I take many science courses, as well as humanities and social sciences. I've almost completed my first semester of the course which every pre-medical, pre-dental, pre-pharmacy, and pre-veterinary student fears the most: organic chemistry. Some people say that organic chemistry is all about memorization – do not belief them! Yes, you have to do a lot of memorization, but what's more important is practicing to really understand the concepts. So, organic chemistry takes up a large part of my daily routine.

Obviously I take biology courses, like genetics and physiology. It is really important to balance out your schedule – I try to take one or two social science or humanities courses, such as anthropology and psychology, each semester to balance out the workload of science courses. Outside of classes, work and studying, I participate in extracurricular activities such as my university’s predental society.
Over my breaks, I divide my time between shadowing, volunteering, and research. I really like shadowing local dentists because it allows me to get the feel for the dental profession; I try to divide my time between general dentists and specialists to see the wide variety of dental careers. I also do volunteer work and community service. I enjoy volunteering at the local hospital and dental school clinics. I also participate in community service work, such as working with individuals with special needs at the Special Olympics.

Finally, I participate in research. Most science students think that research is only working in a laboratory, but that's just one type of research.  I work at my university’s health center doing data management and analysis for many large-scale research projects funded by the National Institute for Health, which is really exciting! And, I can’t forget, this summer, I'm starting my preparation for the DATs! Just a little bit about my life as a predental student.

Thanks for reading, and good luck on your pathway to dentistry!

Dr. Anne Wells
ADEA Senior Vice President, Division of Educational Pathways

Mark your calendars—June 4, 2012 is the opening of the ADEA centralized application for students seeking admission into the 2013 dental school entering class. Although the application doesn’t open until June 4, here are some things you do in advance to make the application process smooth and efficient:

Prepare a resume of your accomplishments (including dates). Compiling all this information beforehand will allow you to complete the application more quickly. You will be asked to provide information in the ADEA AADSAS application about:

Begin to identify individuals who can write letters of evaluation on your behalf. They won’t need to supply letters until the application cycle begins, but it’s always a good idea to line up your evaluators in advance. Check with your health professions advisor. Your school may offer a service to compile letters on your behalf and/or produce a Committee Report on your behalf. If not, the ADEA AADSAS application will ask you to supply contact information for up to four individuals who can provide letters of evaluation. Most dental schools like to have letters from:

Begin thinking about your personal statement for your ADEA AADSAS application. You will be required to submit a one-page personal statement about why you desire to pursue a dental education. Be original and be thoughtful! This is your opportunity to tell your story. And remember…some schools and programs are now using plagiarism software…make sure your essay is your own.

For more information about preparing for the 2013 application cycle, visit the Applicant page at adeaaadsas.org
What questions do you have about the application process? Start a thread in our discussion forum DentNetworks, or comment on this blog and let’s start a conversation.

Paul Garrard
PGPresents, LLC, Independent Student Loan Consultant

Dental school is expensive, but it is also affordable and a great investment. 

There have been changes in financial aid this year, including those recently announced by President Obama.  Some may help dental students, others may not, but none of them change the fact that you are ultimately in control of how you pay for dental school and in control of the choices you make about responsible budgeting and borrowing.

Some tips to help you get started:

Contact your school’s Financial Aid Office about how to apply for financial aid, especially grants and scholarships that will help you reduce how much you borrow.  Research scholarship opportunities tied to service.  Get a free copy of your credit report at www.annualcreditreport.com and pay down any consumer debts you have, as you cannot get financial aid to help with these expenses.

Visit Financing a Dental Education for specific information that you should know before applying to dental school.

Evelyn Lucas-Perry, D.D.S., M.P.H.
ADEA Vice President for Students, Residents, and Fellows

So often I’m asked by pre-dental students about how to best prepare for the dental school application process, and what are the so-called secrets to getting accepted. Well, I'm afraid to tell you that there isn't a sure-fire way of getting accepted into dental school.  Yes, you may have a high DAT score but lack exposure to the dental field, or have limited experience within leadership positions.  On the other hand, you may have exhibited a strong commitment to healthcare with outreach activities, but have a lower GPA.  More than likely, you are in the middle of the extremes... have solid test scores, GPA, and reasonable participation in extracurricular activities-but are unsure of how to stand out.

In order to best prepare yourself for the application process you must understand the individual school's mission and focus. Speaking to current dental students and recent alumni can help identify school characteristics. This can also help identify what school would be a good fit for you as well. Remember, even though you are going through the application process, YOU are choosing the school to attend.

Separating yourself from "the crowd" in your personal statement (and later interview) can become key ways of showcasing your uniqueness to admission officers. Whether it is a personal story or account of your future aspirations your personal statement should highlight your commitment to and knowledge of dentistry. And remember, the personal statement needs to be interesting...ask yourself in a pile of 100 applications would I enjoy reading mine?

But the best way to prepare yourself for the application process is objectively evaluating your application. Yes, applying early and seeking advice from your school's pre-health adviser, current dental students and mentors are important; but recognizing your strengths and opportunities (sounds so much better than weaknesses!) as an applicant is essential.  Knowing this can prompt you to take another higher level biology class, involve yourself in a community program or begin to discover an interest in research. For those who are in the midst of the application process, self-evaluation can help guide your personal statement, selection for those to write your letters of recommendations, and what questions to anticipate during the interview process.

Whatever the case, it is always best to prepare yourself by exposing yourself. Utilize resources like GoDental, ExploreHealthCareers (explorehealthcareers.org), the ADEA (www.adea.org) website, professional organizations (ASDA, SNDA, pre-dental associations, pre-health study clubs) and of course the dental school's website.

If you’re getting started or already on the path, ask yourself, If you were on the admissions committee what would you say about your application?

Keep this in mind and best of luck!

Welcome to Blogistry,

Choosing a career can be challenging and chances are, if you’re visiting our blogspot, you’re ready to begin your journey to a successful dental career.  Blogistry offers an engaging experience focusing on current issues involving the dental community and allowing GoDental members to provide commentary. 

Dental professionals and students pursuing a dental career blog every month about issues concerning the future of dentistry and dental research.  What is it really like to be a dental student?  How can I join the fight for access to care?  What should I do now to get started?  Whether you’re a high school, college, current dental student, or postdoctoral student Blogistry has something for you.

If you’re not a GoDental member, join now-it’s Free!  Your membership will allow you to comment on different monthly post, meet other GoDental members, and stay connected.  We encourage you do so.  Enjoy!