Dental School Debt Rewritten: What the OBBB Act means for Future Dentists It’s no secret that the cost of dental education has reached a breaking point. Today, nearly 78% of dental school graduates begin their careers carrying more than $312,000 in student loan debt , a financial burden that can shape career decisions long before the first patient is seen(1). As changes to federal student loan policy loom, students considering a dental career must un derstand not only how we arrived here—but how to prepare for what’s coming next. Why Dental Education Comes With a High Price Tag Becoming a dentist requires a minimum of eight years of postsecondary education , often followed by additional training. Unlike medical residents, however, most dental and orthodontic residents do not receive a salary or stipend during training. Instead, many continue paying tuition while interest accrues immediately on borrowed funds. As a result, federal loans have become the backbone of dental education financing: Approximately 85% of dental students rely on Direct Loans (1) Nearly 80% of those students also use Grad PLUS loans to cover costs beyond Direct Loan limits (1) Until now, these federal options provided flexibility, borrower protections, and access to income-driven repayment plans—features not typically available in private lending (2). What the OBBB Act Changes for Dental Students Beginning July 1, 2026 , provisions of the One Big Beautiful Bill (OBBB) Act will significantly reshape how graduate education is financed (3). Key changes include: Direct Unsubsidized Loan limits capped at $50,000 per year , with a $200,000 lifetime maximum Elimination of the Grad PLUS loan program entirely For dental students, whose cost of attendance often far exceeds these limits, this creates a substantial funding gap. The Shift Toward Private Lending With federal options restricted, many students will be pushed toward private or commercial loans to bridge the difference. These loans often: Carry higher interest rates Require stronger credit profiles or co-signers Lack federal borrower protections such as income-driven repayment, deferment, or forgiveness options This shift places greater importance on something students don’t often think about early enough: creditworthiness. Why Creditworthiness Will Matter More for Dental Students Creditworthiness affects far more than student loans—and in a post–Grad PLUS environment, it may determine whether private financing is available at all . As federal lending options narrow, lenders will place greater emphasis on an applicant’s credit profile when evaluating risk. A strong credit history can influence: Interest rates: Higher credit scores often qualify borrowers for lower interest rates, which can translate into tens of thousands of dollars in savings over the life of a loan. Loan approval and terms: Lenders review credit history to determine not only whether a borrower is approved, but also the structure of the loan—including required co-signers and repayment terms. Housing opportunities: Many landlords assess credit scores during tenant screening, and lower scores may result in higher security deposits or limited rental options. The good news? Several of the most important factors that contribute to creditworthiness are within your control—and building them early can significantly improve your financial flexibility during and after dental school. Practical Ways Students Can Build Credit Now Even during school, small habits can make a meaningful difference: Pay every bill on time Payment history is the single most important factor in your credit score. Automate payments whenever possible. Keep credit utilization low Aim to use less than 30% of your available credit limit on credit cards. Limit new credit applications Each hard inquiry can temporarily lower your score—only apply when necessary. Keep older accounts open Length of credit history matters. Even unused accounts can help your score if kept in good standing. Review and dispute errors Regularly check your credit report and challenge inaccuracies that could unfairly drag your score down. Preparing for Dental School in a Changing Student Loan Landscape Being mindful of when you apply to dental school—and how you prepare financially beforehand—has never been more important. Establishing strong credit habits early won’t just help you adapt to upcoming loan changes; it can also reduce borrowing costs and improve financial flexibility long after graduation. In a shifting lending landscape, preparation is power. References Istrate EC, Samanta A, Booker CL, West KP. Dentists of Tomorrow 2024: An Analysis of the Results from the ADEA 2024 Survey of U.S. Dental School Seniors. ADEA Education Research Series, Issue 7, December 2024. U.S. Department of Education, “Federal vs. Private Loans,” FederalStudentAid, https://studentaid.gov/understand-aid/types/loans/federal-vs-private (Accessed August 20, 2025.) Sec. 81001, One Big Beautiful Bill Act (Pub. L. 119-21) Stripe. How to Determine Creditworthiness and Build Your Credit Written by: Dr. Beatrice Williams

The Importance of Choosing a Highly Rated Carrier When choosing an insurance carrier for your policy, you may only be worried about what your monthly premium will be. So, you will more than likely pick the cheapest option. While it may be tempting to save a few dollars, picking a low rated insurance carrier may cost you in the long run. Evaluating a Carrier's Financial Stability When looking into a carrier, the first item to look at is their Financial Credit Score. This is similar to your own credit score, as it indicates if a carrier is financially healthy. You may be asking, why would I care? A low rated carrier may not be able to pay a claim or may delay payment for a claim due to their poor finances. When buying insurance, you are placing trust in a company for when you will be at a loss. The purpose of insurance is to transfer risk, and that transfer of risk only works if both ends of the relationship can uphold their promise. If you were to pick a highly rated carrier rather than the cheaper option, you can live without the fear of not being covered if you were to make a claim. Understanding the Value of a Highly Rated Carrier Beyond financial stability, highly rated carriers usually demonstrate reliability in every aspect of their business. A high rating not only comes from a great financial history, but also claim-handling performance, customer satisfaction, and the ability to perform during a disaster. Achieving this status also means that your premium is less likely to increase and will more than likely stay stable. In essence, a higher rating shows that your insurance carrier will survive a recession/financial hardship and is virtually too big to fail. The Bottom Line At the end of the day, choosing a policy is ultimately your choice. An informed decision is the best decision. An informed decision will secure dependable protection for yourself, your family, and your assets. A cheaper carrier may be enticing at first glance, but fear of an insolvent insurer, unreliable claims practices, and an inability to survive financial hardship far outweigh saving a quick buck. By selecting a carrier with proven financial strength, you are ensuring that your coverage will be there when you need it most. In a world full of uncertainty, the peace of mind that comes from partnering with a trusted, highly rated carrier is truly invaluable. Written by: Nate Young

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The thought of dying isn’t the most enjoyable subject but it’s something every person needs to prepare for. If your family, business, or any other dependents rely on your income, then life insurance is the easy solution to any financial burden you may leave behind. In its simplest form, term life insurance requires you to pay a set premium for a certain length (term) that you want to be covered, and if you die during that time, the insurance company pays your beneficiaries a tax-free lump sum. Below are some common myths about life insurance: Myth #1: Young People Don’t Need Life Insurance It’s human nature to procrastinate, especially when it comes to planning out your future but applying for life insurance when you’re young and healthy will lock in the cost-effective rates and insurability. There is no timeline for a person’s major life events, so it’s better to be prepared before it’s too late Myth #2: Life Insurance is only for people with kids Even if you’re single, you still want to make sure you have enough assets to cover any debts, expenses, or bills that you could leave behind. Married couples without kids should both have life insurance to cover loans, mortgages, and any potential lost income. Stay-at-home parents are often overlooked but the economic value of their childcare and household responsibilities need to be accounted for. Business owners who are succession planning or need to protect a key employee also benefit from term life insurance Myth #3: My job offers coverage; I don’t need it While employer paid life insurance has benefits, it usually doesn’t offer enough benefit to adequately cover you, has limited flexibility, and may not come with you if you leave your job. Myth #4: The application process will take too long; I don’t want to do an exam Insurance companies have streamlined the process of quoting, applying, and approving life insurance. Advancements in technology have provided insurers with various scans, checks, and questionnaires to determine a person’s eligibility without needing a medical exam or a deep dive into medical records if healthy. Myth #5: Companies won’t pay and if they do, it will be a huge tax burden You may hear horror stories, but the vast majority of life insurance claims pay out without a problem if the premiums have been paid and the representations made during the application process were accurate. Life insurance pay outs come tax free to beneficiaries. You can’t control what happens in the future so it’s best to plan today to protect the people you love. Life insurance is a step to make that happen Written by: Jeremy Alfano

Understanding the Real Difference Between 1099 and W-2 Dentistry When you are a dentist, associate, or specialist and are trying to make the decision on whether to work as a 1099 or W2, you have likely heard the same old worn-out arguments: 1099 is better for write-offs, or W2 is better for benefits. Both are technically true, yet neither of them tell the whole story. It is not only the difference between the two in terms of taxes, but also the way you prefer to live and work every day. The Predictability and Simplicity of Being a W-2 Dentist Being a W2, life is a little more predictable. There are automatic withholding taxes, you receive standard benefits such as health insurance, malpractice, possibly a 401(k), and some CE or PTO. It is predictable, well-organized, and simple to manage. This arrangement is attractive to most associates, especially at the beginning of their careers. You are able to concentrate on mastering your dentistry skills and do not have to concern yourself with quarterly tax and business deductions; you can do your taxes simply through an online software. It is the plug-and-play version of your career: you come in, work hard, and leave. The downside here is that you sacrifice a certain degree of control; you can't write off costs as easily, your schedule may be predetermined, and your income potential is limited unless production-based bonuses are high. However, the peace of mind and ease are worth it to many. The Flexibility and Responsibility of a 1099 Arrangement Now, when you take a 1099 offer, that is a whole different game. You are not merely a dentist; you are a small business. You are more flexible and have more opportunities to design your income the way you want. CE courses, scrubs, supplies, travel, and part of your home office can be written off. If you are a car person (like me), you can take advantage of Section 179 of the tax code and be able to write off a business deduction for a vehicle over 6,000 pounds, think Bentley Bentayga and Mercedes G-Wagon. You choose the way you spend your money and construct your way of life. However, this comes with the responsibility, quarterly tax payments, and spending money to get a qualified CPA, instead of possibly doing your taxes through a low-cost version of TurboTax if you were W-2. Some love it, some don't. Choosing the Structure That Best Suits Your Life and Goals No universal solution fits all, and that is what people jump over. The final determination lies in the fact that you know what arrangement will suit your goals and life. The point is understanding what you are really getting yourself into before signing a contract. Written by: Vinny Grasso

What is Life and Disability Insurance Underwriting? There are two components used in underwriting Life and Disability insurance Medical Underwriting: is used to identify risk in a person’s health history and lifestyle when applying for an insurance policy. Financial Underwriting: is used to evaluate an applicant’s financial situation, income, assets, and debts for the same purpose as Medical Underwriting. In this article we will look at changes made to these processes since entering the 21st century. What has changed in the last 26 years? Accelerated and Simplified: The largest change one may notice is the increased efficiency in which a policy may be issued. Insurers removing the need for physical medical exams, blood tests, and extensive attending physician statements for many applicants has greatly helped in speeding up the issue of policies. Use of Data Resources: Underwriters have a much larger pool of data to draw from than in years past. More obvious sources include MIB (Medical Information Bureau), motor vehicle reports (MVR), prescription histories, and credit scores. Lesser-known sources for data collection may include use of data from wearable devices, health apps, and public records (given consent from the consumer). These can be invaluable resources when assessing risk. AI: Artificial Intelligence is capable of automating data collection, performing predictive risk modeling, identifying patterns, and making instant decisions for simple cases. These tools allow human underwriters the time and energy to focus on complex cases. Advancements like these in underwriting cannot be understated in their usefulness. Personalization: In the effort to make the experience more comfortable for customers, there has been a shift towards digital applications, tele-underwriting (remote interviews), and virtual medical exams. This personalization extends to pricing, with some models offering dynamic premiums based on real-time data and health behaviors. The ease provided by these developments in not only technology, but also in information processing have been crucial to the underwriting landscape as we currently know it. While the previous advancements have been on the side of the underwriters, the following reflect more on the societal and regulatory changes that have occurred in the timeframe we are discussing. Privacy: With the new data collection resources underwriters have access to, concerns regarding privacy have been rightly raised. Insurers are now more scrutinized on the transparency of how data is collected and used in regards to building customer trust and regulation compliance. Mental Health: With disability policies, we’ve seen insurers pivot towards more often offering coverage for mental health condition spurred on by societal views and demands as understanding around mental wellness expands. We can see that through these advances in underwriting that insurers, who can appear to be flippant in their requirements for coverage, have been hard at work refining their methods to better fit the needs of the now. In the insurance industry, often considered slow-changing for several reasons including some companies reliance on antiquated systems; high levels of regulation on the state and federal level; risk aversion creating a cautious environment that does not handle quick changes well; and a cyclical presence in the market more easily handled by having a reactive approach opposed to proactive, it is plain as day that the industry is capable of growing and adapting to this ever-evolving world. Written by: Jerold Dougherty

CASE STUDY FOR DENTAL PROFESSIONALS A Data-Driven Analysis for General Dentists, Specialists, and Practice Owners Executive Summary: Dentists are often encouraged to purchase the highest malpractice limits available under the assumption that larger limits equal stronger protection. But current data shows a different story: typical dental malpractice payouts are relatively low, lawsuit frequency is modest, and nearly all claims fall well within standard $1M policy limits. This case study compiles national and state-level data (including New Jersey, one of the more litigated dental states) to demonstrate why raising malpractice limits provides diminishing returns, and why dentists are better served by focusing on documentation, patient communication, and risk management, not simply larger insurance limits. 1. Understanding the Real Risk: Dental Malpractice Frequency 1.1 National Frequency Compared with physicians, dentists face significantly fewer claims: Dentistry accounts for ~11% of all national malpractice payments (NPDB-derived). Across all dental professionals, the absolute number of paid claims is low relative to provider count. Many claims filed never result in payment or trial, meaning actual exposure is far lower than raw lawsuit counts. 1.2 New Jersey Frequency (Example State) New Jersey provides a useful model because of its active legal climate. Only 2–3 out of every 100 dentists are sued each year. Meaning 97–98% of NJ dentists face no malpractice lawsuits annually. Most NJ dentists go years—often entire careers—without a paid claim. 2. Severity of Claims: How Much Do Dental Lawsuits Actually Cost? 2.1 National Payout Severity Across the U.S., dental payouts remain low compared to medical specialties such as OB-GYN or surgery. National average payout: ~$79,000 Other aggregated NPDB analyses show a range of $81,000 to $128,000 depending on year and methodology. These amounts sit far below typical policy limits. 2.2 New Jersey Severity Even in a high-litigation state: Low-end payouts: ~$100,000 High-end payouts: ~$400,000 Most claims resolve under $300,000 While rare catastrophic cases do exist, they are statistical anomalies. Outlier Example Largest dental malpractice payout in NJ history: $11,000,000 One case in decades Represents <0.01% of all outcomes Not predictive of general practice risk 2.3 What This Means for Dentists A standard $1M per-claim limit already provides: 12× national average payout 2.5–10× typical NJ payout Full protection in 99.9% of all dental cases Increasing limits beyond $1M rarely provides tangible added value. 3. Why Higher Limits Usually Don’t Reduce Risk Dental professionals often believe that higher limits deter lawsuits or produce better outcomes. Research and insurer data show the opposite. 3.1 Plaintiffs Don’t Sue Based on Policy Limits Claims are filed based on injury and perceived negligence, not the defendant’s insurance amount. 3.2 Higher Limits Can Encourage Higher Settlements This is known as the Insurance Visibility Effect: Attorneys pursue higher settlements when they know more insurance is available. Larger limits increase negotiation pressure. High-limit policies can become attractive targets. 3.3 Defense Quality Matters More Than Limit Size What wins a claim is: Documentation Expert witnesses Informed consent Chart clarity Timely referral Strong representation Higher limits do nothing to improve these factors. 3.4 Most Claims Never Reach Policy Limits The data shows extremely few claims ever approach $1M. 3.5 Higher Limits Increase Premiums Without Increasing Protection Insurers typically charge: 10–25% more for moderate limit increases Up to 40–60% more for large jumps The cost-benefit ratio is poor for most dentists. 4. Where Claims Actually Come From Most dental malpractice claims arise from predictable clinical and communication issues—not lack of insurance. Most common causes include: Improper extractions Nerve injuries (IAN or lingual nerve) Endodontic complications Lack of informed consent Failure to diagnose periodontal disease or pathology Poor documentation Delay in referral Implant placement complications Postoperative infection or follow-up issues These risks cannot be solved by higher limits—only by better systems, documentation, and communication. Interesting footnote: Number of Dental Negligence claims has been on a steady decline from 1991 to 2025. 2025 has seen the lowest payout total for dental negligence in over 20 years. 5. When Higher Limits Do Make Sense Although most dentists don’t benefit from high-limit policies, certain practice types may justify them: Oral and maxillofacial surgeons High-volume implant centers IV sedation practices Full-arch reconstruction practices Practices in heavy-litigation metro areas Dentists with significant personal assets (wealth protection) Group practices with brand visibility Even in these cases, increasing limits should be weighed against: Local jury tendencies Procedural risk profile Existing umbrella or corporate protection Whether increased premiums create undue cost for limited benefit 6. Practical Recommendations for Dentists 6.1 Choose Limits Based on Real Data, Not Fear For most general dentists, $1M/$3M or $2M/$4M is more than sufficient. 6.2 Invest in Risk Management Instead of Higher Limits High-impact areas: Detailed informed consent Radiograph documentation Diagnostic clarity Clear treatment notes Patient follow-up Early involvement of specialists Professional communication Maintaining policies and protocol These reduce both lawsuits and payouts far more effectively than raising insurance limits. Speaking with your insurance agent and understanding what risk management solutions your malpractice insurance company may offer can be very beneficial. Associations may include valuable risk management, CE courses or advanced learning to better understand risks. 6.3 Review Limits Only if Your Practice Changes Increase limits only when your scope changes (implants, sedation, surgery, etc.). 6.4 Maintain High-Quality Defense Coverage Ensure your insurer provides: Dental-specific defense attorneys 24/7 risk hotline Peer review panel Documentation audit tools Early intervention support 7. Conclusion Data from both national sources and state-level trends confirms what many risk analysts already know: Dental malpractice severity is low. Frequency is manageable. And higher policy limits do not meaningfully reduce risk for most dental professionals. For the vast majority of general dentists and many specialists, standard malpractice limits already provide ample protection. The real key to reducing malpractice exposure is: Strong documentation Clear communication Proper patient management Clinical excellence Timely referral Preventive risk protocols Insurance should remain a safety net—not the primary risk strategy. Better practice beats bigger limits. Written by: Jon Christy

When buying a dental practice, the last thing you probably think about after looking over your lease and your conditions letter from the bank are all the insurances they require. They look as easy to attain as your car insurance, just one 30-minute call to the first insurance company that comes up and you’re done! Unfortunately, that isn’t the case for something as overarching as a Business Owner’s Policy. There are many different pieces of information that you probably do not know about that may affect your ability to get the best rates, along with knowing how easy it is to get insurance depending on where you are in the country. Even if you are leasing a practice, when it comes to getting your Business Owner’s Policy, the insurance companies will always ask questions about the building you are going to be in. That includes information like: How old the building is When the last time the electric, roof, plumbing, HVAC was updated What material is the building made out of, etc Now you may ask yourself, “if I am not owning the building, why would I have to know that?”. When it comes to insurance companies and so called “rating information” those are the most important questions they ask, as it helps build your risk profile for how much the insurance company is going to charge for the policy. For example, a building with a wooden frame is going to be much more susceptible to fire damage than a building built out of concrete and metal, and therefore all the office equipment and belongings have a higher risk of getting destroyed in the event of an incident. This also means that without a lot of that information, you may not be able to receive a quote from any insurance company and therefore won’t be able to send your bank or landlord the required documents to close on your loan. Although, the most important reason to not wait until the last minute when looking for your practice insurance is to make sure you are able to easily get the insurance in the first place. Many do not know that in reality, in many areas in the United States nowadays it is getting very difficult to purchase a building as well as business personal property insurance because of events such as hurricanes, tornados, hail, flooding, and even wildfire. States such as Florida, Louisiana, Texas, and even California are getting more and more difficult, and therefore more expensive, for insurance companies to operate and provide good policies that will cover what you want them to cover. And to make sure your, in some cases, multi-million-dollar investment is safe if a big storm or other event comes their way. With that, if you are in a state that gets a lot of bad weather or has wildfires, it will take time for insurance companies to underwrite your project or practice and send out a quote. Even then it may take longer to provide a quote to you, as many insurance companies are now providing policies but without coverage for wind or wildfire. So, it may take some back and forth or even searching longer to find an insurance company that is willing to provide you with a good policy at a decent price that you’ll be happy to take, instead of just taking it because it is your only option. At the end of the day, it is always best to know as much about the space you will be practicing in and to always get a jump on your business insurances, as their job is to protect you on your worst day as a business owner. That way if that day comes, you know what you have and know that you are well protected to face it. This ensures that your business can get back on its feet as quickly as possible and you can continue to take care of your patients with whatever they may need. Written By: TJ Stanton

In the dental profession, securing access to disability and life insurance is crucial for protecting one’s financial future and ensuring continuity of care for patients. However, many dentists may not fully understand the underwriting process and its implications on their insurance policies. This article aims to demystify the underwriting process for disability and life insurance, offering insights tailored specifically for dental professionals. Underwriting is the process through which insurers evaluate the risk of insuring individuals and then determine the terms and premiums associated with their policies. For dentists, the underwriting process involves several critical steps, including medical assessments and occupational considerations. During underwriting, insurers will require a comprehensive medical history, including details of any past medical conditions, current health status, and lifestyle choices. Dentists, given the nature of their work, may have unique health considerations, such as musculoskeletal disorders from repetitive motions, which can influence the underwriting decision. Underwriters often require a medical exam, lab tests, and sometimes, medical records from primary care physicians. Understanding how to present this information transparently can aid in a smoother underwriting process. The nature of a dentist's work can significantly influence underwriting outcomes. Insurers may classify dental professionals as having a moderate-risk occupation due to factors such as the physical demands of the job and potential exposure to health risks, including infectious diseases. When applying for disability insurance, dentists should highlight factors that demonstrate the resilience of their practice, such as their continued patient base and business continuity plans in case of temporary incapacity. To streamline the underwriting process, dentists can take several proactive steps: Choose the Right Insurer: Each insurance company has distinct underwriting criteria and approaches. Dentists should compare policies from multiple providers to find one that best understands their profession and offers competitive rates. Gather Necessary Documentation: Preparing a comprehensive set of medical records can significantly hasten the underwriting process. Dentists should compile their medical history to support their application. Work with Specialized Agents like CFS: Collaborating with an insurance agent experienced in dental insurance can provide valuable insights. Such agents can guide dentists through complex paperwork and help present their profiles effectively to underwriters. Be Honest and Transparent: Misrepresentation or incomplete information can lead to policy denials or unexpected exclusions down the line. Honest communication with insurers can foster a more favorable outcome during the underwriting process. The underwriting process for disability and life insurance can be daunting for dentists, but understanding it is essential for securing appropriate coverage. By being aware of the key considerations—medical assessments and occupational risks—dentists can navigate this process more confidently. With thorough preparation and the right guidance, dental professionals can protect their practice, their families, and their futures from unforeseen events. This proactive approach not only enhances personal financial security but also ensures that they can continue to provide high-quality care to their patients, regardless of the circumstances. Written by: Michael Magargee