Incoming federal loan caps could worsen workforce shortages if fewer students pursue dental education, one DSO executive predicts.
Barry Lyon, DDS, the dental director for Main Street Children’s Dentistry and Orthodontics and the chief clinical auditor for Dental Care Alliance, connected with Becker’s to discuss the potential impact of federal loan caps.
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. The views expressed are those of Dr. Lyon and do not necessarily reflect those of Main Street Children’s Dentistry and Orthodontics or Dental Care Alliance.
This response was lightly edited for clarity and length.
Dr. Barry Lyon:
Donald Trump’s One Big, Beautiful Bill Act is doing no favors for anyone hoping to secure a federal school loan for dental school. Although the effect may not be felt immediately, a decrease in dental school enrollments is not what DSOs want to hear.
Effective July 1, 2026, the law eliminates Grad PLUS loans and imposes caps on federal borrowing. This will force prospective dental students to seek private funding and navigate higher interest rates to make up the difference. Federal loans will be capped at $50,000 per year, with a $200,000 lifetime aggregate limit. With the cost of four years of undergraduate dental school education as much as $424,000, the math does not add up for those needing loans. Add the cost of two to three years of specialty education, and a career in dentistry can become a pipe dream. Students would be faced with having to enter the private loan market where qualifying for a loan is more difficult.
It’s impossible to see if the absence of school loans and a shortage of graduating dentists will affect recruiting in the years to come. The increased financial burden could force prospective students from low- and middle-income backgrounds to abandon plans for professional school education. The American Medical Association also warned that federal loan caps could worsen existing physician shortages.
Will the cap on loans affect DSOs? If so, they will need to increase the focus on doctor recruiting and retention through enticements, support and partnerships.
