Step 8 of 8
Step 8: The rules to remember and your next steps
A one-page recap of the 2026 rules, and the questions to take to a CPA or planner who works with dentists.
What you need to know
You've now got an estimate of your payment, the plan that fits your budget, and what it costs in total. Save or bookmark this guide — your answers are kept in this browser, so you can come back after your next raise, residency match or job offer.
Rules change. These numbers reflect the One Big Beautiful Bill Act as implemented by the Department of Education. Before you make a permanent move — refinancing, filing separately, or turning down a PSLF job — confirm with your servicer, StudentAid.gov and a professional.
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2026 rules every dental student should know
Only two income-driven plans remain
RAP (new, from 7/1/2026) and IBR (loans made before 7/1/2026 only). SAVE, PAYE and ICR are ending — if you're on SAVE, pick a new plan when your servicer notifies you or you'll be moved.
RAP basics
1–10% of your whole AGI ($10/mo minimum), minus $50/mo per dependent. If your payment doesn't cover the month's interest, the rest is waived, and the government tops up so principal drops by at least what you paid (up to $50). Forgiven after 360 payments.
New borrowing limits (entering D1s)
Grad PLUS ends for new borrowers on 7/1/2026. Professional students: $50,000/yr and $200,000 total. Students already borrowing keep current limits for up to 3 more academic years. Gaps will need private loans — compare lenders (e.g., ELM Select) and build credit early.
Residency
Unpaid (student-status) residencies can usually keep deferring. Paid residencies go into repayment — but your AGI is low, so RAP is cheap, and a nonprofit hospital residency can count toward PSLF.
Signing bonuses
Average ~$15k. It's taxable income and raises next year's RAP payment. Know if it's a signing or starting bonus, what the clawback terms are, and have an attorney review the contract. If you're going for forgiveness, don't throw it at your loans.
Paying extra
Federal loans have no prepayment penalty, so you can pay more on RAP any month. Extra payments go to interest first, then principal. But if you're pursuing PSLF or IDR forgiveness, extra payments just shrink what's forgiven.
Refinancing
Refinancing private loans for a lower rate is often smart. Refinancing federal loans is permanent: no RAP/IBR, no PSLF, no forgiveness, no federal pauses. Only do it if you're sure you won't need them.
Credit score
Payment history is the biggest factor — a bill paid within 30 days of the due date is still reported on time. Pay every bill on time and check your report for errors regularly; lenders (including for private student loans) will pull it.
Taxes on forgiveness
PSLF: federally tax-free (some states may tax it). RAP/IBR forgiveness: taxable as income, federal and state, starting with discharges in 2026.
Questions for a CPA or planner who works with dentists
These decisions interact with each other. Ask any advisor for a reference from a dentist they've worked with, and whether they know student loans and DSO contracts.
- Should I file jointly or separately to lower my IDR payment, and what does it cost in taxes?
- Is my employer PSLF-qualifying (check the EIN at studentaid.gov/pslf)? Does my residency count?
- Given my practice-ownership timeline, what student loan payment keeps my debt-to-income ratio lendable?
- If I go for IDR forgiveness, how much should I set aside each month for the tax bill?
- Should my signing bonus go to loans, an emergency fund, or retirement?
- Is refinancing my private loans worth it, and should my federal loans stay federal?
- How much should I put pre-tax (401(k)/403(b), HSA) to lower my AGI?
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.