Student loan forgiveness is unlikely to influence younger dentists working for DSOs as more professionals look to these organizations for other benefits, according to one exec.
The Biden Administration has continued to look for ways to provide relief to graduates after the Supreme Court struck down President Joe Biden's plan to forgive federal student loan debt for millions of Americans.
Student loan debt is often seen as a major barrier for dental professionals' growth and a contributor to increased consolidation in the industry as more dentists join DSOs.
Barry Lyon, DDS, is a chief dental officer for the division of orthodontics and pediatric dentistry at Sarasota, Fla.-based DSO Dental Care Alliance. He recently spoke with Becker's about how student loan forgiveness could affect DSOs.
Editor's note: This Q&A is part of a weekly series featuring Dr. Lyon focused on topics in the dental industry and DSO field. This response was lightly edited for clarity and length.
Question: How could student loan forgiveness affect DSOs?
Dr. Barry Lyon: The American Dental Association states the average debt per graduating dental student is $304,824. For dentists graduating from specialty programs, oral surgeons had the greatest debt at $465,768, followed by endodontists at $327,521, periodontists at $291,525, pediatric dentists at $284,670 and orthodontists at $283,811. Combine dental school with specialty training, and the amount of debt is astronomical.
An analysis of data from the Department of Education shows that the more affluent you are, the greater the benefit from the student loan forgiveness program. The average graduating dentist would disburden themselves of $250,000 of debt to taxpayers. Medical school graduates would have an average of $174,000 forgiven. Graduating lawyers would have an average of $119,000 forgiven.
According to Levy Economics Institute of Bard College, canceling student debt could have possible negative consequences – federal costs may outweigh economic benefits, canceling student loans may be inflationary and result in higher interest rates.
The student loan forgiveness program is unlikely to influence younger dentists working for DSOs. As reported by the ADA, the percent of dental school seniors entering private practice who plan to join a DSO increased from 12 percent in 2015 to 30 percent in 2020. It was commonly held that graduating dentists joined DSOs because their debt prohibited them from opening their own practices. However, factors such as a positive work-life balance, mentorship and strong earning potential lead young dentists toward DSOs regardless of their ability or inability to open their own practices.