New borrowing limits for federal loans could affect students’ ability to attend dental school, further straining the workforce, according to the American Dental Association’s Health Policy Institute.
The new rules, which are part of the 2025 One Big Beautiful Bill Act, went into effect July 1 and limit borrowing to $50,000 per year for professional degree programs.
The Education Department has said the overhaul is designed to streamline the student loan system and rein in student loan debt, which currently stands at almost $1.9 trillion, CBS News reported July 1. The bill also includes changes to loan repayment programs and GRAD Plus loans.
Eight notes:
1. The average dental student borrows well over the new $50,000 annual limit in nearly every dental program in the U.S., the ADA reported.
2. Dental education also represents the largest gap between average annual borrowing and the new federal loan cap when compared to other healthcare training programs.
3. Nearly $2 billion in federal loans was given to more than 20,000 dental students for the 2024-25 academic year. This category of funding made up nearly 85% of student financial assistance reported by schools that year, benefiting 72.4% of dental students.
4. The student loan overhaul also includes the phasing out of the GRAD Plus loan program, which was a major avenue for dental students to pay for their education. The end of this program strictly limits borrowers to the $50,000 annual cap.
5. Fewer federal loan options could lead to additional financial barriers for students who seek alternative borrowing options from private lenders with higher interest rates and credit score requirements. The ADA noted that an estimated 25% of students in professional health programs are disqualified by these conditions.
6. Reduced participation in federal loan repayment programs could also lead to fewer dentists working in underserved areas, worsening dental shortages.
7. Federal loan restrictions could lead to fewer dental school applicants and less diversity in the applicant pool. Prospective students could also choose to prioritize dental schools with lower tuition.
8. The ADA predicted that a potential shift in the applicant pool toward less diverse, more affluent students could reverse the trend of new dentists delaying practice ownership and opting for group practices and DSOs.
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