2 yr Comp residency vs 1 yr AEGD

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The MS is fine for the service. It will help particularly if (most do I'm sure) you get board certified as you get more pay. The MS, IMO, doesn't mean much outside of the military in the case of the general dentist.
The MS will not affect board certification or pay in the military. It does help the 2 yr AEGD program appear more in line with other specialty programs where you earn a MS (Ortho, perio, etc...).

Earning an MS in any dental specialty does not indicate that you are a better dentist inside or outside the military. An orthodontist in civilian practice with an MS can not claim to have any special training or advantages that an orthodontist without the degree doesn't have. It's just more letters after your name.

In the Army you can earn a separate MS in Healthcare administration (you can do a dual degree track and get an MS in business too) through the Baylor program, but that is a separate program and not associated with any specialty training.

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