The Eligibility Requirements of Dental Residency Loans

Student loan lenders, like those who distribute dental residency loans, are more sensitive to the situations of students. This means they are aware many students will not have incomes and some will have short credit histories. These two criteria would normally be the requirements for a personal loan. However, since student lenders cater to this demographic, they have very different requirements. Dental residency loans are distributed based on the potential for future payoff instead of the record of past payoff.

Gradated or Soon to Graduate Dental School

Residency loans are only intended for individuals who are soon entering residency programs. They are designed to cover the cost of interviewing for a residency and relocating if necessary. Then, they are designed to supplement a resident's salary to cover living expenses. It is a challenge for a lender to pledge these funds if a student has not yet graduated dental school. However, if a student is very near graduation, then the loan process can begin. 

Passed or Studying for a Board Exam

Before going into a residency program, a student needs to not only graduate but also pass a board exam. Residency loans can help cover the cost of registering for the exam. They can also assist a student in the time when he or she is studying for boards and cannot work. Because boards are required before residency, a student who has not passed the test or registered for the test will have a hard time sourcing a loan for a residency program. The student may not have an idea of whether he or she will even be eligible for a residency program for some time. Lenders are willing to consider lending to students who have not yet passed the exam, but they should indicate when they intend to sit for the boards.

Student Loans in Good Standing

Student loans, if a dental student has them, should all be in good standing. While it is okay to have a low credit score due to a short credit history, there will be challenges sourcing the loan in the presence any actual negative credit information. If undergraduate or graduate student loans are in default, lenders will be very wary of extending further debt. For most dental students, dental school loans will be the greatest indicator of how they presently handle debts to any potential future lender. Make sure these loans are paid for at least two years consistently prior to seeking a new loan.

Miscellaneous Criteria

There are a number of criteria that may help your chances of getting a good rate on a loan. For example, students who graduated at the top of their class tend to be more profitable in the future. They also show a record of responsibility in school which usually transfers into responsibility on loans. As a result, these students tend to get better loan rates. Students who have families may also receive better rates because they tend to repay their debts more responsibly than single students. These are not requirements by any means, but they can help in the loan process.


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