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The Fastest Way to Eliminate School Debt by Albert Georig, DDS

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by Albert Georig, DDS
One of the greatest challenges that face new graduates is to pay back their dental school loans. Many young dentists are graduating with loans ranging from $200,000 to $450,000. And what is most devastating is that these loans have very high interest rates. This amount of debt makes it difficult to borrow money and start a practice. The biggest problem is that young dentists typically have no concept of the overall consequence associated with these loans. These government loans will be with them for life — even bankruptcy will not eliminate them. This becomes a government debtors prison.

Pay the principal
In the example shown, we have a 30 -year $300,000 loan at a 7.9 percent interest rate where student A will end up paying $485,000 in interest and would have to make $1.5 million just to pay that interest. In the first year of the loan, the dentist pays a monthly payment of $2,180.41 — or $26,165 yearly — of which about $2,500 goes to principal and $23,600 goes to interest. With almost all banks’ method of front-loading interest to the early years of a loan, the student is effectively paying a 900 percent interest rate the fi rst year! I am sure that most dentists don’t know they are paying 900 percent interest on their loan.

Once they realize this I would think that most would like to pay this loan off very quickly and save hundreds of thousands of dollars in interest. If the dentist would pay $6,000 toward the principal each month instead of the $2,180.41, the loan would be paid off in five years after he would save $420,000 in interest. Until his school debt is paid off, it would be very smart to live more simply, as if he was still a student, because the lifetime benefits are enormous.

Other ways to quickly eliminate dental school loans
As a dental student: Just because the government will lend you the money does not mean you have to take all of it. You must remember that for every dollar you borrow you’ll have to pay nine dollars in interest. Try to refinance your loan at a lower rate. While in school, have an extra job. Live like a student, not like a doctor. Try to get scholarships or join the military while you’re in school and have them pay your way.

As a recent dental graduate: Move to an area where there is a dental need. This may be where the dentist-to-patient ratio is above 1 to 2,500. This number can be found at Aftco.net under dentistics [Editor’s Note: check out the article on location and demographics on page 61.] You may need to initially become an associate, but the real profitability in dentistry is in ownership. Work as an associate in a good practice and learn efficient clinical skills and office systems in the meantime.

For myself, I would never start big or new with a practice. I would look for an office that was already a dental space. Hopefully I could buy the equipment that was already there. But if not there are many areas where you can buy used equipment. You might be fortunate to find a practice for $200,000 or $300,000. With the right systems, these practices can be million-dollar practices. I know dental practices that are in 1,200 square feet and are netting $700,000 per year and the owner is working three days a week.

To truly be successful in dentistry today, you need a dental consultant who understands systems and profitability. Each has a different personality; you will connect with one of them. Take advantage of minority loans, which vary from state to state and in some cases can even reduce your business loan interest rates by one or two percent. Live like a student until your school loans are paid off. Set a goal to pay off your loans in five years and be completely debt-free 10 years from graduation.

Conclusion: Most dentists have little understanding on how money really works and lose hundreds of thousands of dollars because of this ignorance. Don’t be one of them. There have been a lot of changes in dentistry over the past few years and it has become much more difficult to get started as a young dentist. But dentistry is still great and if you follow the recommendations in this article, your career in dentistry can be incredible — and both personally and professionally rewarding.
Dr. Albert Goerig graduated from Case Western Reserve University Dental School in 1971, entered the Army and retired a colonel in 1991. He is a Diplomat of the American Board of Endodontists and has been in private practice for 23 years in Olympia, Washington. He has presented at every major national dental meeting and has a coaching program for endodontists since 1996. In 2005 Dr. Goerig co-authored a book with Kendrick Mercer entitled “Time and Money, Your Guide to Economic Freedom” to teach doctors and team members the secrets of becoming personally and fi nancially free. He has two free websites to help dentists and their teams become financially free (DoctorAce.com and DebtFreeDentist.com). He and his wife, Nancy, have five children and were married in 1969.

Dentaltown Magazine
September 2025
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