Debt 101 Overview Student debt has become a

Debt 101

Overview • Student debt has become a forefront issue in this country as the cost of education is on the rise • Pay attention now so you don’t need to pay too much later • ASDA has tools and resources to help you stay on top of your student debt Disclaimer: The websites, applications and businesses references in this guide are not endorsed by ASDA and were suggested by dental students on ASDA’s Council on Membership who have utilized the resources themselves.

What to Do Now? • • Budget Scholarships and repayment Financial aid Calculate your debt

• Biggest mistake people make is not budgeting • Set financial goals and make smart decisions • Helpful tools: • Mint®: Money, Budgeting, Finance & Investing • www. youneedabudget. com HELPFUL TIPS What to Do Now | Budget 1. Limit spending -remember you are a student -use coupons 2. Put yourself on a budget 3. Build your credit -free annual report -annualcreditreport. com -creditkarma. com 4. Maximize what you already spend -tax deductions -find the best credit cards for you -nerdwallet. com

What to Do Now | Scholarships • Scholarships and grants • ASDAnet. org/paying-for-dental-school/scholarships. aspx • Repayment programs • ASDAnet. org/paying-for-dental-school/repaymentprograms. aspx

What to Do Now | Financial Aid • Apply yearly to FAFSA (Federal Student Aid) • www. nasfaa. org/students/About_Financial_Aid. aspx • State Financial Aid • NASFAA (National Association of Student Financial Aid Administrators) • US Dept of Education Financial Aid Resource Database • financialaidtoolkit. ed. gov • Contact the financial aid representative at your school for help!

What to Do Now | Calculate Your Debt • Loans (other than private) are backed by the government • • National Student Loan Data System (NSLDS) Central, integrated database for student aid Tracks loans through entire cycle nslds. ed. gov/nslds_SA/ • Many loan servicers have applications to help students manage their debt • Nelnets Loan Assistant • Loan calculator • Greatlakes

Loan Rates • Debt 101 Guide • Interest rates vary from one type to the next • Create a chart with information about each loan: • • • provider contact balance interest rate repayment terms grace period

How Can I Prepare? • Become knowledgeable about your debt • Repayment plan options • Save for residency applications and licensure exams

How Can I Prepare? | Become Knowledgable • Understand the “Lingo” • • Deferment? Accrued Interest? Forbearance? Go to: ASDAnet. org/paying-for-dental-school/financialterms. aspx for a glossary of financial terms • Know your debt and when its time to pay up! • • Create a personal record of your debt and when its time for repayment Allows for accurate on time payments to avoid late charges and the negative effects to your credit score

How Can I Prepare? | Repayment Options • What happens when its time to pay the piper? • ADEA has a dental loan organizer and calculator to help you weigh your loan repayment options • • www. aamc. org/services/first/godental/ Allows for you to visualize what your payments will be and how you need to adjust your career and lifestyle choices to best fit payment of your student loans

How Can I Prepare? | Repayment Options • Types of Repayment • Standard: Less overall payment with less interest • Graduated: Lower monthly payments at first then higher in the end • Extended: Lower monthly payments overtime, but higher overall cost in the end • Income based: Pay what you can afford monthly but plan to be paying for decades • Pay as you earn: Quick repayment of the entire loan but harder to qualify

How Can I Prepare? | Save for future apps/exams • Residency Application Cost: • MATCH: ~$90 to register • PASS: depends on # of schools • • • $190 for the first school $75 for each school afterwards 10 applications = $865 (as of 2016)

How Can I Prepare? | Save for future apps/exams • Budget for residency interviews • Expenses: • Transportation, hotel, parking, food. . . etc. • Local Interviews: ~$50 -100 • Long distance: ~$1, 000

How Can I Prepare? |Save for future apps/exams • Licensure costs: • • First take your National Boards I and II Approx $400 per exam • State licensure exams • • Different states have different requirements Visit ASDAnet. org/licensure for specfic state requirements • If you plan to practice outside of your native state budget for travel costs • Retaking boards costs money

While in the Hot Seat • • • Timely payments and forbearance Consider a financial planner Post-graduate options Utilize the tripartite ASDA resources and policies on debt

While in the Hot Seat | Payments & Forbearance • Pay in full and on time! • Late or missed payments have a negative effect on your credit score • • • Low credit score can hinder future loan attainment Maintain a positive relationship with your loan servicer and contact them immediately when a late payment occurs A positive relationship with your loan servicer can net you more options with repayment

While in the Hot Seat | Financial Planner • We are dentists… not financial advisors • Many dentists have not had formal financial education • Hiring a good financial planner can save you $1, 000 s and many a headache • • Advise on investments, buying a practice, tax deductions, etc. Look for financial planners that work exclusively with dental professionals

While in the Hot Seat | Post-grad Options • Goals? • • • What kind of practice do I want? Where do I see myself in 5, 10, 15 years? Prepare my dental resume

While in the Hot Seat | Tripartite • Being a part of organized dentistry Networking improves your options Peer support ADA, state, and local dental association resources • • ADA Center for Professional Success http: //success. ada. org

While in the Hot Seat | Find a Mentor • Find a mentor you can turn to for advice Don’t be afraid to have many mentors whom you can turn to when you need them • Mentors may change from time to time based on your needs and goals • Mentors may have personal experiences that may help guide you in your financial decision making • • To find a mentor, go to your local or state dental society, ASDA alumni or faculty member at your school

While in the Hot Seat| ASDA Resources • Mouthing Off Blog “Money Monday” www. asdablog. com • List of scholarships and repayment programs ASDAnet. org/paying-for-dental-school • “Getting Through Dental School” handbook • Debt 101 Guide • Finding a mentor video http: //youtu. be/OLyn 5 zb. H 1 o 0

While in the Hot Seat | ASDA Policy • ASDA’s F-4 Student Debt Policy Encourages Congress and state legislatures to pass measures that include: ü Reduction of student loan interest rates ü Improved access to public service loans ü Loan forgiveness & scholarship opportunities for students & residents practicing in underserved areas Read the full policy at ASDAnet. org/statementsonpolicy. aspx

Advocate for your future • National Dental Student Lobby Day • In 2014, 375 ASDA members advocated for the following bills to address the burden of student debt: • Federal Student Loan Refinancing Act • Student Loan Interest Deduction Act • ASDA’s Council on Advocacy • Email advocacy@asdanet. org to determine what you can do to advocate for your future • ASDA’s legislative resources • ASDAnet. org/Engage