Board of Governors’ Dental Scholarship Loan (BGDSL) Loan Forgiveness FAQ

The Board of Governors’ Dental Scholarship Loan program was established by the Board of Governors of the University of North Carolina in 2007 to provide up to four years of financial assistance in the form of a forgivable loan to qualified students accepted for admission to dental school in North Carolina at Chapel Hill.

A recipient who graduates from the UNC School of Dentistry and secures a qualifying position may apply to repay the loan obligation through loan forgiveness. Recipients must complete loan forgiveness within seven (7) years of graduation from the dental school.

Recipients who do not graduate from the UNC School of Dentistry or who do not work in a qualified position will be required to repay the loan in cash, which includes a 10.0% interest rate beginning September 1st after graduation or immediately upon withdrawal from dental school.

How to apply for loan forgiveness.

In order to qualify for loan forgiveness, you must graduate from the UNC School of Dentistry, obtain licensure from the applicable licensing board, and secure qualifying employment. To apply for loan forgiveness you must follow the steps out-lined below. You are responsible for submitting the appropriate forms to the SEAA on time.

1. Notify the SEAA of your intent to repay through loan forgiveness within 90 days of graduation from dental school. You should notify the SEAA even though you may not have secured a qualifying position. You may complete this process during the exit interview process on the Student Portal or through Repayment Services at (919) 549-8614, ext 4654 or (800) 700-1775, ext 4654.
2. Obtain licensure from the applicable licensing board.
3. Secure a qualified position. You should contact Repayment Services prior to accepting a position to determine whether the position qualifies for loan forgiveness.
4. Complete a Application for Proposed Practice Location form and return it to the SEAA for approval.

What is the loan forgiveness repayment rate of the BGDSL program?

One academic year of loans will be forgiven for each year of full-time qualifying employment.

What is a qualified position? Am I required to work in a designated shortage area in North Carolina?

You may qualify for loan forgiveness by working full-time as a dentist in the State of North Carolina. You should contact Repayment Services staff prior to accepting a position to determine whether the position qualifies for loan forgiveness. All positions must be approved by the SEAA.

How long do I have to repay my BGDSL loan obligation through loan forgiveness?

You must complete your loan forgiveness obligation within seven (7) years of graduation from dental school.

What if I change my worksite?

If there is a worksite change before you complete your BGDSL forgiveness obligation, you must seek approval from the SEAA prior to the change to ensure the new site qualifies for loan forgiveness.

What if I have a break in employment?

If you have a break in employment prior to completing your obligation, you should notify the SEAA immediately of the status change. If you no longer work in a position that qualifies for loan forgiveness, you must repay the loan in cash. If you cannot remit a scheduled payment when due, you may apply for a deferment to delay repayment for a period approved by the SEAA. Interest will continue to accrue during the deferment period.

How do I apply for deferment?

To apply for deferment, you must submit a Postponement/Deferment Form to the SEAA for approval. See BGDSL Administrative Policy for eligible deferments.

What happens if I cannot fulfill my loan forgiveness obligation?

You made a commitment to repay this scholarship-loan when you signed the promissory note accepting educational funding from the SEAA. If you cannot repay the scholarship-loan through loan forgiveness, then you must repay it in cash within twenty (20) years of graduation or withdrawal from the program. For additional instructions on cash repayment, click on the BGDSL Cash Repayment link.

Whom should I contact if I have additional questions concerning my BGDMSL loan?

Additional information is available in the Program Policy or you may contact Repayment Services staff between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday.