Dental Residency and Relocation Loans

Updated on October 31, 2023

Financial aid usually doesn't cover certain costs that dental students face. While federal education loans are accessible during dental school, they only cover expenses specified in the school's cost of attendance (excluding residency). Hence, many dental school graduates turn to private loans. Private lenders can assist with expenses like dental board exam preparation, residency interview participation, relocation, and other related costs (housing, transportation, groceries).

Dental Residency Relocation Loan Features

Borrow up to $15,000 or $30,000, depending on the lender
Up to a 15-year repayment term, with no prepayment penalties
Payments may be deferred for up to 7 years during the residency
Cosigner release option may be available after 12 to 48 consecutive, on-time payments
F ixed or variable interest rates are available

Best Private Student Loans for Dental Residency and Relocation

Cosigner Recommended

Recommendation

Best for Private Loans

Repayment Terms

10-15 Years⁶

(undergraduate)

Interest Rates

Variable Rates: 6.37% APR - 16.70% APR¹

Fixed Rates: 4.50% APR - 15.49% APR¹

Apply Now More Info

Variable Rates: 6.37% APR - 16.70% APR. Fixed Rates: 4.50% APR - 15.49% APR. Lowest rates shown include 0.25% interest rate discount with auto debit payments.¹
Apply online in minutes and receive an instant credit result²
Multiple repayment options from in-school payments to deferred.¹ No origination fee or prepayment penalty³
Last year, students were 3x more likely to be approved with a cosigner⁴ and it may help you get a better rate.
Borrow up to 100% of school-certified expenses, whether you're online or on campus⁵

Borrow Responsibly

We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.

Loans for Undergraduate & Career Training Students are not intended for graduate students and are subject to credit approval, identity verification, signed loan documents, and school certification. Student must attend a participating school. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident), and provide an unexpired government-issued photo ID. Requested loan amount must be at least $1,000.

¹Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment.

²In 2022, instant credit decisions were provided to 97.8% of applicants. Other applications typically received credit decisions in 3 to 5 business days.

³Although we do not charge a penalty or fee if you prepay your loan, any prepayment will be applied as outlined in your promissory note-first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.

⁴Based on the percentage of borrowers who were approved for an undergraduate loan with a cosigner compared to the percentage of borrowers who were approved for an undergraduate loan without a cosigner from October 1, 2021 through September 30, 2022.

⁵ For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website may be subjected to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time.

⁶ Examples of typical costs for a $10,000 Smart Option Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment may receive a loan term that is less than 10 years.

Information advertised valid as of 08/25/2023.

SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION.

Smart Option Student Loans® are made by Sallie Mae Bank. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners.

Edvisors is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers.

Dental Residency Relocation Loan Eligibility Requirements

Dental Residency and Relocation loans are available to students in their final year of dental school and for twelve months following graduation.

Since residency and relocation loans are private student loans, they have the same eligibility requirements you may have encountered with in-school private loans:

If the borrower is not a U.S. citizen or permanent resident, a creditworthy cosigner who is a U.S. citizen or permanent resident will be required.
If the borrower is the sole applicant, they must have reached the age of majority in his/her state of residence. The borrower must be at least 18 years old in all states with the exception of age 19 in Alabama and Nebraska and age 21 in Indiana, Mississippi, New York and Puerto Rico. If a borrower does not meet the age of majority requirements in their state, a creditworthy cosigner will be required.
The borrower must satisfy credit criteria. If the borrower does not have satisfactory credit, a creditworthy cosigner will be required.

Is There a Credit Check for a Dental Residency Relocation Loan?

The credit history of both the borrower and cosigner will be checked, regardless of whether the cosigner is optional or required. Eligibility and interest rates and fees may be based on the higher of the two credit scores. So, even if a borrower could qualify for a private student loan on his or her own, adding a cosigner may yield a lower interest rate.

What Will My Interest Rate Be?

The interest rate may be fixed or variable. A fixed rate remains unchanged for the life of the loan. A variable rate changes periodically, typically on a monthly or quarterly basis, meaning your payment amount may fluctuate as well.

You will not know what your interest rate will be until you contact your lender of choice and begin the application process. In general, the stronger your credit or your cosigner’s, the lower your interest rate will be.

Dental Residency and Relocation FAQs

Who is eligible for a dental residency and relocation loan?

Eligible borrowers are those who are enrolled in their final year of school or have recently graduated from medical or dental school, typically within the past twelve months. Check with your prospective lender for other eligibility requirements.

Is there a federal loan option to cover my residency and relocation costs?

No. There is no federal loan program in place to cover these types of expenses. However, if you already have unused federal student loan funds, those funds may be used toward relocation for your residency.

Can I borrow a dental residency and relocation loan with bad credit?

It will be difficult to get approved for a residency and relocation loan with bad credit. However, you always have the option of applying with a creditworthy cosigner. Even if you qualify without a cosigner, getting a cosigner may give you a better interest rate.

Is there a limit to how much I can borrow?

Typical limits for this type of loan are $15,000 to $30,000 depending on the lender you choose.

Can I defer my payments during residency?

You may have the option to postpone your loan payments during your residency. Reach out to your lender(s) to determine your eligibility for loan postponement. Interest will likely accrue during this time, so we recommend making payments if possible.

Do you have to pay back loans during residency?

Because you can defer payments during your residency, you do not have to pay back loans during that time. However, remember that interest will accrue throughout the life of the loan.

Can I use a cosigner for a dental residency and relocation loan?

Absolutely. In fact, using a creditworthy cosigner may help you qualify and get a better interest rate.

What are the repayment terms for a dental residency and relocation loan?

You should expect a repayment term of up-to 15 years with no prepayment penalties. This means you will not be charged any additional fees for paying your loan off early. Note, the earlier you pay your loan off, the less you will pay in interest.