What is a private student loan?

Private student loans originate with a bank, credit union or online lender — unlike federal student loans that are handled by the federal government.

You can use both federal and private loans to pay for school, but federal loans typically have more favorable terms, including lower interest rates, flexible repayment options and loan forgiveness. For those reasons, it’s best to prioritize federal student loans before private loans.

Private student loans can be a good option if:

• You have already completed the Free Application for Federal Student Aid, or FAFSA, to see if you’re eligible for federal grants and work-study programs.

• You have already borrowed the maximum in both subsidized and unsubsidized federal student loans.

• You or a co-signer have good credit (a credit score of 690 or above). Many private student loan borrowers apply with a co-signer to improve their chances of qualifying.

• You borrow only what you need and expect you can repay.

Student Loan Terms to Know

• Deferment: A period of authorized nonpayment that pauses student loan payments for up to three years. Deferment can be a good option if you have a federal subsidized and can’t afford to make payments now, but will be able to soon. If you need a longer-term fix, consider income-driven repayment instead.

• Delinquent: The status of a student loan after one or more missed payment. Loans enter default after a prolonged period of delinquency. While you will probably face late fees, you can avoid credit damage and default by quickly paying the past-due amount.

• Disbursement: The process of releasing loan funds to the borrower or directly to the school.

• Fixed interest: An interest rate that does not change during the life of a loan. All federal student loans have fixed interest rates, but private loans can offer fixed or variable interest rates. Fixed interest is the safer option because you don’t have to worry about your rate — and payment — increasing.

• Variable interest: Variable interest rates can change monthly or quarterly depending on the loan contract and come with rates caps as high as 25%. Variable interest loans are riskier than fixed interest loans but can save you money if the timing is right.

• Origination fee: The fee a borrower pays to offset a lender’s cost for issuing a student loan. All federal student loans have origination fees, while many private student loans don’t. Origination fees typically have a minimal effect on undergraduates with lower loan amounts, but can be costly for graduates and those with higher loan totals.

• Prepayment: Prepayment is when you pay off part or all of your loan before the scheduled due dates.

How much can I borrow for college?

Only borrow what you need and can expect to pay back. Start with federal loans, and take private loans if you need additional funds to pay for college.

The maximum in federal student loans you can borrow depends on your year in school, whether you’re a dependent or independent student and the type of loan. With private loans, the amount you borrow can’t exceed your school’s total cost of attendance, less other financial aid.

How do I choose a private student loan online?

• Compare loan offers: Check options from multiple lenders including banks, credit unions, online companies and state-based lenders to find the lowest interest rate.

• Decide on fixed or variable rate: Depending on the lender, you may be able to choose a fixed or a variable interest rate. A fixed rate stays the same throughout the life of a loan; a variable rate may start out lower than a fixed rate, but could increase or decrease over time depending on economic conditions.

• Choose a loan term: You may also have the option to choose your loan term. A short term gives you higher monthly payments, but also faster repayment and less total interest. A longer term allows you to pay less each month, but more interest over a longer period of time.

• Consider borrower protections: A private lender may offer deferment, forbearance or another temporary repayment adjustment if you can’t afford your payments.

Will I need a co-signer for a private student loan?

If you have no income and no credit or bad credit, you’ll need a co-signer to get a private student loan. Without bills in your name, such as a credit card, car loan or utility, it's hard to demonstrate that you can pay bills on time. Your co-signer will need a steady income and good credit scores. A co-signer is responsible for repaying the loan if you fail to make payments.

Some private lenders will let students apply without a co-signer. Instead of basing your loan offer on your credit, they look at your academic performance and earning potential to determine your ability to pay back the debt.

Paying for dental school

Becoming a dentist is one of the most rewarding professional paths in healthcare — and one of the most expensive to pursue. Understanding the full cost upfront helps you plan with confidence and choose the financing strategy that fits your goals.

According to recent data from the American Dental Education Association, dental school costs vary widely by program and residency status:

• Public dental schools (in-state): roughly $40,000–$55,000 per year in tuition

• Public dental schools (out-of-state): roughly $60,000–$75,000 per year

• Private dental schools: roughly $70,000–$100,000 per year

Over four years, total cost of attendance including tuition, fees, equipment, and living expenses typically ranges from about $230,000 at an in-state public school to $400,000 or more at a top private program. Some programs, including UCLA, can exceed $430,000 over four years.

The good news: dentistry remains a strong long-term investment. The median dentist salary is around $179,000, and specialists often earn well above $200,000.

Start with the FAFSA to access federal Direct Unsubsidized Loans and any institutional aid your school offers. Future dentists also have access to several specialty programs that can meaningfully reduce debt:

• Health Professions Scholarship Program (HPSP) — covers full tuition plus a stipend for dental students who commit to active duty service in the Army, Navy, or Air Force

• National Health Service Corps (NHSC) — scholarships and loan repayment for dentists who commit to working in underserved communities

• Indian Health Service (IHS) Loan Repayment Program — up to $50,000 in loan repayment for dentists serving in tribal communities

• State-level loan repayment programs — many states offer their own programs for dentists practicing in shortage areas

• Public Service Loan Forgiveness (PSLF) — available for dentists employed full-time at qualifying nonprofit hospitals, federally qualified health centers (FQHCs), and government facilities

What's changing with federal loans for dental students in July 2026

The One Big Beautiful Bill Act (OBBBA) introduces new federal borrowing rules starting July 1, 2026. Here's what dental students should know:

The Department of Education's updated definition recognizes dentistry as one of 11 "professional" programs, which qualifies dental students for the higher federal borrowing limits available to professional students:

• Grad PLUS loans are being phased out for new borrowers

• Federal Direct Unsubsidized Loans are capped at $50,000 per year and $200,000 lifetime for professional students, including dentistry

• An overall federal lifetime cap of $257,500 applies across all student loans combined (undergraduate plus graduate)

• A streamlined set of repayment options — new borrowers will choose between a tiered Standard plan and a new Repayment Assistance Plan (RAP)

What this means in practice: because most dental programs cost between $230,000 and $400,000 over four years, federal loans alone typically won't cover the full cost. Most dental students will use a combination of federal loans, scholarships, family resources, service-based programs, and private loans to fund their education.

If you have federal loans disbursed before July 1, 2026, you may continue borrowing under the current rules for up to three more years or until program completion, whichever comes first, as long as you remain continuously enrolled in the same program.

When a private student loan can help

With Grad PLUS gone for new borrowers and federal limits capped at $200,000 lifetime, private student loans are an increasingly common piece of the dental school financing puzzle.

A private loan may be a good fit if:

• Your federal loan limit ($50,000/year, $200,000 lifetime) doesn't cover your full cost of attendance

• You have strong credit, or a co-signer who does, and can qualify for a competitive rate

• You're attending a high-cost private dental school or living in an expensive metro area

• You want to compare rates against the federal Direct Unsubsidized rate, which has been in the 7–9% range in recent years

Dental students often qualify for favorable terms. Lenders recognize that dentists have strong, predictable earning potential — both in private practice and as employed clinicians. Many private lenders offer in-school deferment plus reduced or interest-only payments during dental school, with full repayment beginning after graduation.

A few things worth knowing before you borrow privately:

• Private loans don't qualify for federal income-driven repayment, PSLF, NHSC loan repayment, IHS, or military service forgiveness programs

• If you're considering working in an underserved area, military dentistry, or a nonprofit/academic setting, maximize federal borrowing and explore service-based programs first — the loan repayment can be substantial

• For dentists planning to enter private practice or join a group, private rates are often competitive and can save money over the life of the loan

• If you're planning to specialize (orthodontics, oral surgery, periodontics, endodontics, prosthodontics, or pediatric dentistry), factor in additional 2–6 years of training, some of which may carry their own tuition

A note for parents

If you're helping your child pay for dental school, you generally have two private options:

• Co-signing a private student loan in your child's name. Keeps the debt on your child's credit, and many lenders offer co-signer release after a set period of on-time payments.

• Taking out a parent loan in your own name. Keeps the loan off your child's credit but leaves you solely responsible for repayment.