Also:ad Going through your options for the school of dentistry you want to enroll in this year. You can as well check out New York University or NYU School of Dentistry. It’s a good choice considering the tuition fee and basically your student loan plan.
The cost of NYU dental school is not what it seems. If you look at official statistics, you might believe that the cost is only in the $300,000 to $400,000 range.
For the class of 2023, we expect the typical student to leave with $673,000 in student debt.
In this article;
- NYU School of Dentistry
- NYU School of Dentistry Cost of Living
- The Average NYU Dental School Debt vs The NYU Loan Balance
- Accrued Interest Growth
- How High Cost of Living Compounds the Problem
- If You Already Have a Mountain of Dental School Debt
NYU School of Dentistry
The College of Dentistry was founded in 1865 as the “New York College of Dentistry.” It merged with NYU in 1925. NYU Dentistry is the third oldest continuously operating and the largest dental school in the United States.
In 1957, the College moved into its present home on First Avenue, which in 1965 was named the K. B. Weissman Clinical Science Building.
In 2015, a new joint 170,000 square foot building for Dentistry, Nursing, and the Bioengineering Institute were opened. In aggregate, the College of Dentistry occupies 27 floors distributed among five buildings.
NYU School of Dentistry Cost of Living
|NYU Dentistry Cost 2019 – 2023||2019 (Year 1)||2020 (Year 2)||Year 3||Year 4|
|Tuition & fees||$95,968||$95,078||$94,978||$94,978|
|Add 3% inflation||$0||$4,019||$8,159||$12,419|
|3% avg origination fee||$4,019||$4,113||$4,234||$4,362|
|Accrued interest @ 7%||$9,659||$19,544||$29,720||$40,203|
|Total each year||$147,646||$160,754||$175,090||$189,962|
NYU school of dentistry pulled its cost of living estimate website in 2019, but if your archives you can see they estimated about $38,000 per year before that was removed.
Add 3% inflation, 7% accrued interest fees, and a blended 3% upfront origination fee (from 25% Stafford loans and 75% PLUS loans, since Stafford charges about 1% upfront fees and PLUS charges about 4% upfront).
The total cost of NYU Dental for the class of 2023 without financial help is $673,452 if you borrowed the full amount.
The Average NYU Dental School Debt vs The NYU Loan Balance
According to the recently released College Scorecard data, the NYU dental school average debt for students in 2016 and 2017 was $357,882.
The median was $387,660. That big difference between the median and mean suggests there are a lot of smaller debt burdens from students with family assistance hiding the true cost for students without financial help.
Keep in mind the estimated cost of attendance. However, the debt loads of the class of 2015-2017 that I’ve seen have been about $550,000 for dental students.
That means when they went to school, the published cost of attendance was significantly less than what’s on the NYU website today.
For dentists, their tuition increased while they were in school. If you look at NYU’s four-year cost of attendance estimate, you’ll only see the published prices at today’s rates.
That gives an inaccurate picture for a student interested in their final loan balance at graduation.
Accrued Interest Growth
The worst impact though comes from the accrued interest growth while you’re in school. Unlike undergraduates, professional students receive few subsidies.
The accrued interest balance, once you finish, can often be over $80,000 for dental students. At NYU Dental I project that new students will add about $100,000 of interest on the balance borrowed during school alone.
This interest goes directly into your principal balance at graduation (called capitalization).
Hence, there are three ways the school’s cost of attendance estimate is flawed:
- Future tuition increases are not accounted for
- Accrued Interest isn’t mentioned
- Loan Fees are not accurate
How High Cost of Living Compounds the Problem
New York City is extremely expensive. You’re virtually guaranteed to need the super high-cost Grad Plus loans to pay for living expenses there.
In New York (or any expensive city for that matter), your rent could easily exceed $2,000 or even $3,000 a month.
Motivated students might try to live with roommates or avoid expensive food and entertainment options, but that only goes so far when your required tuition and fees cost $100,000 each year.
If you have other options, I always suggest to prospective applicants to choose a low-cost location for their graduate study.
You’ll be working and studying most of the time anyway, so you might as well save $100,000 or more in living expenses that will result in a much lower debt burden.
If You Already Have a Mountain of Dental School Debt
While you might be able to put 50% of your take-home pay into your student loans, the first question I’d ask is if that’s a smart approach?
If a loan forgiveness strategy shows a cost in today’s dollars of 60% of what you owe, then that would be the better path.
However, if your current family income today and in the future would warrant refinancing, you can get a plan for how and when to do that based on your career and family plans.
Maybe you want to start a family first, or buy a house, or purchase a private practice. Whatever your goals are, the student loans you have should bend to that objective.
NYU College of Dentistry (NYU Dentistry) will offer an accelerated degree track within its dental hygiene program for advanced students, creating a path for dentists with international dental degrees who want to pursue careers in dental hygiene in the United States.