Student Loan Reform
Easing the burden of student loan debt.
While there are clear federal goals to increase the number of medical professionals in the United States, the current student debt crisis tells another story. After at least 10 years of higher education, the average first-year orthodontist carries over $570,000 in student loan debt.
We recognize this is a huge burden for our members. It also discourages students – particularly from underserved communities – from even considering the specialty. While the AAO is committed to general policies that make college more affordable, we have several areas of focus to help our members conquer their debt.
Student Loan Debt for Orthodontists
The burden of student loan debt shapes where orthodontists practice, limits their ability to buy or start practices, and reduces the number of orthodontists pursuing careers as educators. Addressing these financial challenges is a top AAO priority as we support our members and strengthen the future of dental care in the U.S.
Support student loan refinancing.
We are working to enable borrowers to refinance their undergraduate and graduate federal student loans whenever rates drop, just as with the home mortgage market.
Reduce fees and rates for all future federal borrowers.
Currently, student loan interest rates are established at the 10-year Treasury note rate, plus a margin 2.05% for Undergraduate Stafford Loans, 3.60% for Graduate Stafford Loans, and 4.60% for PLUS Loans. Origination fees on Undergraduate and Graduate Stafford Loans are set at 1.069%, and for PLUS loans they are 4.276%.
We believe the marginal rates that are added to the market rate should be reduced on all federal Direct Loans, and the origination fees should be removed. Because orthodontists tend to borrow heavily to complete 6 to 7 years of graduate school, such rate reductions would be of great value to orthodontic students.
How can you help?
The AAO Political Action Committee ensures orthodontists’ voices are heard in the federal government.
