News from the Capitol

The Legislative Insider is published during the Legislative Session by the Georgia Dental Association. It contains updates on the activities of GDA's Government Affairs team as well as information about bills relevant to dentists and patient care.

How to Lower the Total Cost of Your Student Loans

Jul 17, 2025 by Michael Jerkins, MD, M.Ed, President and Co-Founder of Panacea Financial
Managing student loan debt is a major concern for many dentists, and choosing the right repayment strategy can lead to significant savings over time. Whether through forgiveness programs, extra payments, refinancing, or automatic payment discounts, understanding your options is key to minimizing total loan costs.

Dentists often accumulate substantial debt during their education. Once in practice or residency, it is time to start repaying these loans. 

Everyone’s repayment strategy is different, depending on personal financial goals. Some aim to pay the least monthly, others want to pay off loans quickly, and some are focused on paying the least overall. If your goal is to reduce your total student loan cost, here are six strategies that could help. 


Understand Your Loans 

Before you dive into repayment options, make sure you fully understand the terms of your loans. Knowing the type of loans you have and their interest rates is essential to compare repayment strategies. This will help you calculate how much your loans will cost over time without any changes, giving you a baseline to evaluate other options. 


Look Into Loan Forgiveness Programs 

If you have federal loans, forgiveness programs could help reduce your overall loan costs. Public Service Loan Forgiveness (PSLF) allows borrowers working full-time for qualifying public service employers to have their remaining balance forgiven after 120 payments. This can be ideal for dentists working in community health centers or government positions. 

If PSLF isn’t an option, federal loan borrowers can also explore Income-Driven Repayment (IDR) plans, which may forgive the remaining balance after a set number of qualifying payments.


Make Extra Payments 

For those not seeking forgiveness, making extra payments can significantly reduce your total interest paid over time. Even a single extra payment each year can make a noticeable difference.  

However, if you are pursuing loan forgiveness through PSLF or IDR, making extra payments is not recommended, as it will increase your total payments and reduce the amount forgiven. This strategy is best for private or refinanced loan borrowers. 


Consider a Shorter Repayment Term

 A shorter repayment term can reduce the total interest paid over the life of the loan, although it requires higher monthly payments. While this may not be an option for those in training or early in practice, it can be beneficial for borrowers with private loans who want to pay off their debt faster. 


Set Up Automatic Payments 

Enrolling in automatic payments is a simple way to reduce your interest paid. Most federal loan servicers offer a 0.25% rate reduction for borrowers who set up automatic monthly payments. This small discount can lead to savings over time. Enrolling in automatic payments can also help you not miss a payment.


Refinance or Consolidate Your Loans 

Refinancing or consolidating your student loans can also lower your interest rate or simplify your payments. However, refinancing federal loans with a private lender means giving up access to federal programs like loan forgiveness or IDR, so be sure to weigh the pros and cons of this decision carefully.


Refinance with the Bank for Doctors 

Reducing your total student loan cost requires a solid understanding of your loans and careful consideration of various strategies. With thoughtful planning, you can find the best solution for your financial goals and work toward becoming debt-free. 

If refinancing could help you save over the life of your student loans, Panacea Financial is ready to help with transparent rates, no maximums, and exclusive discounts for GDA members. Learn more about student loan refinancing from Panacea at https://panaceafinancial.com/our-partners/gda-members/.

 

Panacea Financial is a division of Primis Bank. Member FDIC.

 

 

Michael Jerkins, Panacea Financial Headshot

 

About Michael Jerkins, MD, M.Ed 

Michael is the President and Co-founder of Panacea Financial and is also a practicing physician in Little Rock, AR. After earning his BBA in Economics he deferred his medical school acceptance to teach middle school science in the Phoenix, AZ area while also earning his Masters in Education from Arizona State University. He then completed medical school at the University of Tennessee Health Science Center before finishing his residency at University of Cincinnati Medical Center and Cincinnati Children’s Hospital. With a faculty position and board certifications in both Internal Medicine and Pediatrics, Michael is able to treat patients of all ages and teach medical trainees in both inpatient and outpatient settings.