Navigating Finances in Dental School: Understanding Stipends, Scholarships, and Loans

Pursuing a Doctor of Dental Surgery (DDS) degree is a significant investment. While the curriculum is rigorous, understanding the financial aspects of dental school is essential for students to manage their education costs effectively. A common question among prospective and current dental students is whether they receive a stipend. This article explores the financial landscape for dental students, clarifying the availability of stipends and delving into alternative funding options such as scholarships and loans.

Stipends for Dental Students: An Overview

Generally, dental students do not receive a stipend in the traditional sense, meaning they are not paid a salary for attending the program. Unlike some graduate programs in other fields where students may be compensated for research or teaching assistant roles, dental school is primarily a professional program where students pay tuition. However, there are exceptions, particularly in specialized programs or during residency.

Funding Avenues for Dental Students

Since stipends are not generally available, dental students rely on a combination of scholarships, grants, and loans to finance their education.

Scholarships: Merit and Need-Based Awards

Scholarships are a crucial source of funding for many dental students, as they do not require repayment. These awards are typically based on academic excellence, financial need, community service, or a combination of these factors.

Academic Excellence Scholarships: The Admissions Committee awards scholarships to outstanding individuals accepted into the DDS program based on academic excellence.

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Need-Based Scholarships: Several scholarships consider financial need as a primary criterion. For example, scholarships are awarded annually to D2 students with an Expected Family Contribution (EFC) less than $5000 and a GPA of 3.0 or greater.
Program-Specific Scholarships: Some scholarships are earmarked for students in specific programs or years. One $5000 scholarship per year is available each spring to D2 students for disbursement in their D3 year. A $1000 scholarship is offered each spring to DH 2 students. Up to three scholarships of $2000 are awarded each year (based on the availability of funds) to D4 and DH2 students, disbursed half in the fall and half in the spring of the current academic year.
External Scholarships: Organizations like the American Dental Hygienists Association (ADHA) offer scholarships ranging from $1000-$2000 for DH1 students, based on GPA, need, and membership in the ADHA. The National Dental Association also provides a variety of Dental Scholarships, with awards ranging from $500 up to $20,000, supporting the entire dental team, including assistants, hygienists, dental students, and post-doctoral students.
University Scholarships: University Scholarships consist primarily of private scholarship funds donated to the School of Dentistry. Information regarding these scholarships will be provided during the academic year.
Non-University Scholarships: Non-University Scholarships are from various organizations, agencies, companies, or private individuals and are not administered by the University. Students are required to meet various agency restrictions, which may include academic achievement, special talent, leadership abilities, and group affiliation.

Read also: Aspiring Dentists Guide

Grants: Need-Based Financial Aid

Grants, like scholarships, do not have to be repaid. They are typically awarded based on financial need and are often funded by federal or state governments, or by the university itself.

Need-Based Grants (DDS Only): Grants are awarded based on financial need and do not have to be repaid.

Federal Loans: A Major Source of Funding

Federal student loans are a primary source of funding for many dental students. These loans, offered by the U.S. Department of Education, typically have more flexible repayment options compared to private loans.

Federal Direct Loans: The William D. Ford Federal Direct Loan Program provides low-interest unsubsidized loans financed by the US Department of Education. Loans are available to students who are US citizens or eligible non-citizens. Loan repayment begins six months after graduation or dropping below half-time enrollment.
The government sets the interest rate for each July 1st through June 30th of the following year. The interest rate for a loan, once established, applies for the life of the loan - that is, the loan will be a fixed rate loan. As a result, it is likely that many borrowers will have a set of fixed-rate loans, each with a different interest rate for the Direct Loans.
Federal Unsubsidized Direct Loans: These are available to all students regardless of income. Interest accrues from the date of disbursement, but the extra costs of accrual can be avoided by making regular interest payments while in school. The unsubsidized amount may be used to meet the difference between the student budget and financial aid awarded (i.e., to replace the student contribution and/or parental contribution).

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Health professions students qualify for greater amounts of Unsubsidized Direct Loan funds than other disciplines. Including the amount that would previously have been offered in Direct Subsidized Loans, health professions students can receive up to $40,500 in our 9-month first year. In subsequent years, when students are here year round, that eligibility rises to $47,167. The combined aggregate limit for both the subsidized and unsubsidized loans is $224,000.
Federal Direct Grad PLUS Loans: These are available for graduate and professional students. The interest rate for the Grad PLUS Loan is fixed annually in the same manner as listed above for other Direct Loans. Interest accrues from the day the funds are released.
To be eligible for a federal Direct Grad PLUS Loan, you must be a US citizen or eligible non-citizen with a valid Social Security number, must not be in default on a federal loan or liable for a grant or federal Perkins Loan overpayment, and must meet a minimal credit eligibility as determined by the Department of Education. A federal Direct Grad PLUS Loan may only be considered after Direct Loan eligibility has been determined through the financial aid application process. Direct Grad PLUS eligibility may cover the full cost of attendance minus the amount of other financial aid received.
Health Professions Student Loans (HPSL) & Loans for Disadvantaged Students (LDS): These are provided by the federal government for dental student financing on a priority basis. First priority is given to those students with no personal and/or family financial resources. The interest rate is 5 percent with a ten-year repayment period. HPSL and LDS loans may be deferred (interest and principal) during periods of advanced training, including internships and residencies.

Private Loans: An Alternative Option

Private loans are offered by banks and other financial institutions. These loans typically have variable interest rates and may require a co-signer.

Private Alternative Educational Loans: Students must apply for private loans (aka. Private Alternative Educational Loans) on their own. Students often elect to apply for a private loan for the period during which they are studying for the state boards and/or for expenses incurred while applying for a residency program. Interest rates vary according to the lenders. Because private loans are generally not federally guaranteed, the borrower must demonstrate credit-worthiness. This is based on an applicant’s personal credit history, including factors such as prior loan repayment records and current personal debt.

Work-Study Programs: Earning While Learning

Work-study programs offer students the opportunity to work part-time, typically on campus, to earn money to help pay for educational expenses.

Federal Work-Study Program: This program is available to US citizens or eligible non-citizens with financial need and is earned through part-time employment. Students secure employment through on-campus or off-campus agencies and may work up to 20 hours per week during the quarter.

However, because the School of Dentistry program is so rigorous, it is recommended that students do not work while enrolled. Therefore, work-study is rarely awarded to dental students.

University/Regents McCoy Loan

University/Regents McCoy Loan are available to students with financial need. The McCoy Loan interest rate is 5 percent. There is a ten-year repayment period with a minimum repayment of $90 per quarter. No interest or principal is due until six (6) months after graduation or less than half-time enrollment at an institution of higher education. NOTE: A CO-SIGNER NOTARIZED SIGNATURE REQUIRED IF UNDER 18 FOR THIS LOAN.

California DREAM Loan Program

The California DREAM Loan Program allows for UC and CSU campuses to administer non-federal loans to undocumented students who meet the DREAM Act Application requirements. Students who demonstrate financial need can borrow up to $4000 through the Dream Loan Program. Interest rates will be fixed at the same rates as Federal Direct Loans, with no loan fees.

Important Considerations for Dental Students

Credit History: If you believe that you will need to seek private loan funds to help meet your education expenses while attending dental school, it is suggested that you request a credit history report as soon as possible to evaluate your ability to secure private loan funds. Generally, a request for a credit history report requires four weeks to complete.
Federal vs. Private Loans: Students considering student loans need to be aware of the differences between federal student loans and private student loans. Federal student loans are required by law to provide a range of flexible repayment options including, but not limited to, income-based and income-contingent repayment plans as well as loan forgiveness benefits that private lenders are not required to provide. Federal direct loans are available to most students regardless of income. Federal loans are available to students who are US citizens, permanent residents, or US nationals with a valid Social Security number. Those with a valid I-94 form showing refugee or asylum status or also eligible. These loans must be repaid with interest, usually after graduating or separating from the education program. Awards include long-term, low-interest loans. Repayment of the principal and interest of these loans is usually deferred until six months after graduation or withdrawal. Some loans are eligible for internship/residency deferment while others only allow for forbearance. When you are offered a loan, you will be given additional information to assist you with your final decision to accept or reject long-range indebtedness. Private University funds may require one or two co-signers. on student visas are NOT eligible for federal loans.For more information about the different types of federal loans.
Scholarship Scams: When searching for a scholarship, be very careful to avoid scams aimed at getting your money and/or personal information.

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