Orthodontist Repayment Guide | Student Loan Planner

Orthodontist Repayment Guide | Student Loan Planner

If you’re an orthodontist with student
loans there’s a good chance that you have six hundred thousand dollars or
more in debt in many cases. Of course, some orthodontists get really lucky. Some
of you go out and have two hundred thousand of dental school debt and maybe
take out a modest amount of debt during a residency program because you’re very
careful with your finances, and maybe you only graduate with 300,000 or 400,000
of student loan debt. In that case, you might consider doing something like a
consolidation with the Revised Pay As You Earn strategy and getting an interest
subsidy and then refinancing through links like ours at studentloanplanner.com/refi, where you can get a cashback bonus, compare a lot of
different places to see what would be the best interest rate that you can get
on your student loan debt. But, what’s the reality of orthodontic
training programs these days, is you go through, you know, a dental school program,
and rack up, you know, a typical three, four, five hundred thousand dollar
dental school debt, and then you have to go to a three year training program for
a orthodontics residency. And since a lot of times these programs have minimal
stipends or they don’t cover the full cost of living in a certain area, and you
might not actually have a lot of loan fees as well that you have to take out.
For example, some of the bigger orthodontic training programs have fees
that are like $75,000 a year in some cases. So if you take out this additional
debt to finance your training as an orthodontist, you’re piling hundreds of
thousands of dollars on top of five hundred thousand, or four hundred
thousand, three hundred thousand that you already owe. And so, then the interest
really accrues and grows while you’re in training because you’re probably not
taking that extra step of calling your loan servicer to get an in-school
deferment waiver. You’re probably not attempting to get the right repayment
program set up for your long term goals. You’re probably not thinking about your
student loan debt during a orthodontic residency program as much as you should.
So after that residency ends and you finally start making a, you know,
associate level income of like two hundred twenty-five thousand, something
like that, then you have six, seven, eight hundred thousand dollars, even a million
dollars, of student loan debt. We’ve had three orthodontists that have had
approximately a million dollars of student loan debt,
although our typical orthodontist has more like $600,000 of student loan debt.
As we see people who are borrowing at today’s prices finish their training, I
fully expect the average debt for an orthodontist that went to a
typical dental school with a typical residency program with the typical cost,
I think that the average is gonna trend more towards seven or eight hundred
thousand dollars which is truly frustrating. So, say you come out owing
that much, you know, what do you do? What do you do to live and have a good life
and live a decent financially secure lifestyle? Well, the first thing that you
have to do is get your student loans under control by getting on the right
repayment program for your life. So if you have a debt to income ratio that’s
over one-and-a-half to one, you’re probably gonna need a look into loan
forgiveness strategies. Maybe you’re living in a community property state or
married to a spouse that makes a lot less than you, maybe who has no student
loan debt. In that case thinking about a community property filing separate
strategy with Pay As You Earn or IBR. Maybe you need to be thinking about
depreciation for your practice to try to get your adjusted gross income lower. Maybe
you want to put money into your retirement accounts to lower your income
that way to get your student loan payments to a lower amount to increase
the value of loan forgiveness. Also maybe you just frankly want to build up
a little bit more cash flow to buy a practice and eventually refinance it but
you’re afraid of when you want to refinance that debt. So maybe you need to
refinance it a little bit after buying a practice, or do you refinance it before, or do
you wait several years? There’s all kinds of decisions that you have to make. One
thing that I can tell you is that the practice owners that we’ve worked with
in the orthodontic community have made around four or five hundred thousand
dollars a year, which is pretty amazing if you think about it. How many
professions out there make that much money? Not many. And while you might
still owe a ton of student loan debt, you can certainly have a lot of
options with that kind of an income. Now if you want to work in a big city in a
saturated market, you know, like think about any city that actually has an
orthodontic residency program is probably gonna be saturated, because a
certain percent of those people are just gonna want to stay right where they’re
at, right? So if that’s you, if you’re gonna do that, then just know that you’re going
to make less money. You probably will make in the mid $200,000 or low $300,000 if you decide to buy a practice, and you’ll make less than that
as an associate. So the same goes for a place like Utah or most places
in California and New York City. Places like that are very saturated, so you just
have to realize that if you have a lot of student loan debt you might need to
use a different strategy if you’re gonna live in one of those places. So, if you
want to deal with your orthodontic student loans that are larger than most
people’s mortgage in many cases, we’re probably the only group with Student
Loan Planner that’s actually advised many many people in the orthodontic
community about this. So if you want to get help, just reach out to [email protected], we’d love to get more information about you and see
what we can do to help figure out your loans. So just please reach out, and we’ll
get an analysis done for you for a very fair transparent fee. And the most
important thing though, is just figure out your orthodontic student loans. Don’t
just put your head in the sand and just pretend they’re gonna go away. It’s
something that if you do a little bit of planning now on the front end, you can
have tremendous positive impact over the life of your loan repayment. Most people
don’t pay attention to it until three, four, or five years out of training when
it’s just ballooned and you just did an income based payment, you signed
up for that but you didn’t really understand why. You’re not really doing a
lot in your brokerage account. You’re just kind of throwing money randomly at
problems and you just don’t know what to do. That’s something that you really should
get help with. So, orthodontists with student loans get really just screwed
over even though they have decent incomes, you’re dealing with a monster
student loan debt, and you really want to make sure you get a plan for that. So thanks
so much for watching.

Author: Kevin Mason

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