Newly graduated dentists gnash teeth at debt burden

By BRONWYN SELL

Four out of five new dentists have student loans of more than $80,000 and debts are forcing more and more to move overseas, says a survey.

The survey of 316 recent graduates, prepared for the Dental Council of New Zealand, found many were concerned about their ability to pay debts.

The debts were affecting their ability to get home mortgages and set up practices.

More recent graduates felt they were disadvantaged compared with those who had trained under cheaper regimes.

Fees peaked last year at the Otago University dentistry school to more than $20,000 a year, although the new Government had increased funding to the institute so that it could halve fees this year.

Some graduates said they would not have studied dentistry if they had known the fees would rise so much, and the report said those who left New Zealand might have little incentive to return.

"They feel that they have been unfairly treated through the education system and their chance of attaining private practice in the future is curtailed by their huge level of debt."

Of those who graduated in 1998, 97 per cent had debts of more than $50,000 and 79 per cent owed more than $80,000 - up from 3 per cent in 1994.

Graduates were happy with their incomes. The majority earned between $45,000 and $70,000, and many of those earning more than $70,000 were working overseas.

"But many dentists express concern about their ability to make inroads into their debt, especially if employed in public hospitals where the income is low but where the experience is regarded as valuable.

"Consequently, dentists are looking to the private sector or overseas."

The survey showed dentists were moving overseas earlier in their careers and increased debt was discouraging them from further study.