Student Loan Reform
Easing the burden of student loan debt.
Becoming an orthodontist requires over a decade of post-secondary education, with the average orthodontic resident graduating with a staggering $570,000 in student loan debt. This debt influences where future orthodontists can choose to practice, with most opting for cities or suburbs in order to pay down their loans faster.
To address this critical issue, the American Association of Orthodontists (AAO) has developed a suite of resources to support colleagues, advocates, policymakers, and residents exploring student loan forgiveness programs and policy solutions.
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.
Student Loan Relief: Advocacy in Action
AAO is committed to expanding student loan repayment opportunities through state-specific advocacy efforts.
In Florida, AAO successfully worked with state leaders to expand the Dental Student Loan Repayment Program, which provides critical relief for eligible dental professionals.
Policy Solutions
The AAO advocates for reasonable, actionable solutions to ease the burden of student debt, such as:
- The Resident Education Deferred Interest Act (REDI Act), which would allow medical and dental residents to defer payments on their federal student loans—and delay the point at which interest begins to accrue—until after completing their residency.
- The Student Loan Refinancing and Recalculation Act, which would provide a chance for borrowers to refinance their federal student loans when interest rates are lower. It would also eliminate loan origination fees and allow medical and dental residents to defer payments until after completing their residency programs. Additionally, it would delay the accrual of interest for many low- and middle-income borrowers while they are in school.
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.
