BBB question about loans for residency next year

[pulpyboi]

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I graduated from dental school a few years ago with $300k in loans. My program would cost me 200k+ to cover tuition and living expenses for the next two years. If I take out loans before the July 1st start date to cover my tuition for the next year (starting July 1 2026), will I technically be grandfathered into taking out grad loans for my next two years? Or will I still need to take out private loans?

 

[JacquesVallee]

I graduated from dental school a few years ago with $300k in loans. My program would cost me 200k+ to cover tuition and living expenses for the next two years. If I take out loans before the July 1st start date to cover my tuition for the next year (starting July 1 2026), will I technically be grandfathered into taking out grad loans for my next two years? Or will I still need to take out private loans?

I could be wrong, but my understanding is since the loans won't be dispersed until July 1-your residency start date-, you won't be grandfathered in.

 

[allDAT]

So in this situation, what happens? You've exceeded your 200k loan limit with prior loans, and then you want to specialize later. Are you forced to take out private loans? If so, what are the options looking like there?

 

[Undecided__]

I could be wrong, but my understanding is since the loans won't be dispersed until July 1-your residency start date-, you won't be grandfathered in.

this is correct. IF your program starts July 1, then the loans won't be dispersed by July 1. You will not be grandfathered in. You must find another way to pay for residency

 

[Pablo Sanchez]

this is correct. IF your program starts July 1, then the loans won't be dispersed by July 1. You will not be grandfathered in. You must find another way to pay for residency

The fact that there is nobody at the school outright walking people through this and you have to rely on random people on SDN to tell you is shameful and downright scary.

 

[JacquesVallee]

The fact that there is nobody at the school outright walking people through this and you have to rely on random people on SDN to tell you is shameful and downright scary.

I'm not sure the dental schools even know. It's bizarre.

 

[Undecided__]

The fact that there is nobody at the school outright walking people through this and you have to rely on random people on SDN to tell you is shameful and downright scary.

Things could change next year. The Trump Admin may decide to change their stance on that.

Due to the complexity of this situation, I feel like schools are not wanting to comment on it.

 

[JacquesVallee]

Things could change next year. The Trump Admin may decide to change their stance on that.

Due to the complexity of this situation, I feel like schools are not wanting to comment on it.

It's not that complex. Students are capped at 50k a year in student loans. That will not change anytime soon.

 

[wanderer4]

What if a program starts in June? I heard the loans still only get disbursed July 1. Unless the FAFSA application is for last year is applicable? Genuinely curious how everyone is going about this.

 

[SigmaFS]

What if a program starts in June? I heard the loans still only get disbursed July 1. Unless the FAFSA application is for last year is applicable? Genuinely curious how everyone is going about this.

The disbursement date is what's critical. If the federal direct loan is disbursed before July 1st, you should be okay.

 

[wanderer4]

The disbursement date is what's critical. If the federal direct loan is disbursed before July 1st, you should be okay.

So it comes down to if the school accepts the 2025-2026 FAFSA application or the 2026-2027 FAFSA application.

 

[SigmaFS]

So it comes down to if the school accepts the 2025-2026 FAFSA application or the 2026-2027 FAFSA application.

No

 

[yendo25]

My program starts in June of 2026. When I contacted the school’s financial aid about the loan disbursement date they said it’s typically 10 days prior to the start date so the courses can be fully paid before the official start date. My understanding is typically loans are taken out prior to the start date (which would be before July 1st in your case)- so I would double check with your program!

 

[SigmaFS]

My program starts in June of 2026. When I contacted the school’s financial aid about the loan disbursement date they said it’s typically 10 days prior to the start date so the courses can be fully paid before the official start date. My understanding is typically loans are taken out prior to the start date (which would be before July 1st in your case)- so I would double check with your program!

Many residencies begin pre-July. Again, what is critical is the Grad PLUS Loan disbursement date. Schools can disburse federal direct loans up to 10 days before the 1st day of classes, but this assumes the student has taken all the steps to get to that point, ie, completed the FAFSA, all the required school docs/forms, the Grad PLUS application and promissory note, etc.