Step 1: Your income as a new dentist

Income-driven plans don't look at your balance — they look at your income. Start with what you expect to earn and how much you'll put away pre-tax.

What you need to know

Your payment on RAP or IBR is based on adjusted gross income (AGI), not salary. AGI is your pay minus pre-tax contributions like a 401(k) or 403(b), an HSA, an FSA and health premiums. A $180,000 associate salary with $13,000 of pre-tax contributions is a $167,000 AGI.

Payments also lag your pay. Your first year of repayment uses the tax return you filed as a student — usually a $0 AGI, which means about $10 a month on RAP. Year two uses your graduation-year return, which only covers part of a year of pay. Your full salary shows up in year three.

If you expect a big jump — becoming a partner, buying a practice, finishing a specialty residency — add it as a milestone so the 30-year projection isn't built on your first-year pay.

A signing bonus is taxable. It lands on your graduation-year return and raises your year-2 payment.

Your income

Career & income

What you expect to earn once you start practicing.

Starting salary (associate / residency)

Annual raise

AGI on your most recent tax return

As a student this is usually $0 — that's what RAP uses for your first 12 months.

Graduation year, income milestones and bonus

Share of the year you worked in your graduation year

Graduate in May, start in July ≈ 50%. This return sets year-2 payments.

Career milestonesIncome jumps — partner, practice owner, a year off. Between milestones pay grows at your raise rate. Your payment reacts a year later, when that income reaches your tax return.

Signing / starting bonus

Taxable income — it raises the AGI on your graduation-year return.

Pre-tax contributions (per year)

Retirement and health contributions lower the income your payment is based on.

How do you want to enter these?401(k) / 403(b) — 2026 limit $24,500

HSA, FSA, premiums and yearly growth

HSA — limit $4,400 self / $8,750 family

FSA

Medical / dental / vision premiums

Yearly growth in these amounts

IRS limits and premiums drift up over time. Holding them flat for 30 years overstates your AGI.

Year 1 total: $13,000 · year 10: $16,235

Estimates only — not financial, tax, or legal advice. Rules reflect the One Big Beautiful Bill Act as implemented by the Department of Education (last reviewed September 2026). Confirm with your servicer, StudentAid.gov, and a CPA or planner who works with dentists.