Recent changes to federal student loan policies have created confusion and concern for many would-be medical students. These changes result from President Donald Trump’s tax and spending plan. The new law sets hard caps on federal student loan borrowing, capping borrowing for professional schools at $50,000 a year. Given that the cost of medical school frequently exceeds $300,000 over the course of four years, these limitations would severely impact access to medical education.
Beginning July 1, 2026, a federal loan limit will begin to affect the majority of graduate students. They’ll be capped at borrowing $20,500 per year, with a total borrowing limit of $100,000. For students in professional schools such as medicine, law or dentistry this limit is even higher at $50,000 per year. Their overall cap goes as high as $200,000. This new structure represents a shocking departure from the financial landscape that has long been the bedrock for many aspiring medical students to build their plans upon.
The effect of these changes is most severely felt by medical students, who are already shouldering high debt loads. According to data from the Association of American Medical Colleges (AAMC), the median education debt among medical students who have any student debt is around $200,000. Yet most of these students are stuck with repayment plans stretching 10 years or more. In reality, over half of all medical students now use exclusively Grad PLUS loans to pay for medical school.
Rising Tuition Costs Exacerbate Financial Strain
Now, consider that tuition at most Chicago-area medical schools nears $300,000 for four years, not counting living expenses. Tuition has risen consistently at private and public universities alike over the last several decades. When taking inflation into account, they have skyrocketed by 81% since 2001. The financial cost of a medical education is increasing at an astronomical rate. Recently raised loan caps have made it even harder on future students.
Among them, Tricia Pendergrast, a student who has funded her medical education entirely with Grad PLUS loans. In her testimony, she detailed her objections to the changes made in the last year. She noted that the increased borrowing limits won’t improve diversity or accessibility in medicine.
“It’s not going to improve representation, and it’s not going to improve access,” – Tricia Pendergrast
This feeling is felt overwhelmingly by the millions of premeds. We worry that these financial barriers will discourage potential talent from ever entering the field of medicine.
The Impact on Diversity in Medicine
Further compounding the plight of diversity in medicine, the demographic landscape of medical students paints a grim picture. According to current AAMC enrollment data, just 10% of medical students identify as Black and 12% Latino. This lack of representation has alarmed student leaders who have recently pushed their institutions to diversify medical education.
Sophia Tully, co-president of the Minority Association of Pre-Med Students at Northwestern University, was able to articulate her frustration. She advocates for improvements on the state level.
“For lack of a better word, people are panicking,” – Sophia Tully
Tully and her peers recognize that these changes are unlikely to foster a more inclusive environment for underrepresented groups in medicine. Alexis Chappel, a recent graduate of Northeastern Illinois University, has highlighted the importance of this matter. She emphasized that the recent changes in student loan policies delivered a heavy financial blow to Black and brown students.
“I just felt like it’s a direct attack on Black and brown students who plan on going to [medical school],” – Alexis Chappel
Chappel’s experience illustrates the broader anxiety within the community as students contemplate their futures amid rising costs and limited funding options.
Navigating Uncertain Futures
As would-be med students grapple with these new realities, thousands have found themselves unmoored when it comes to their financial futures. Next year, the median out-of-pocket annual stipend for new doctors after they get their MD is expected to reach $65,100. This leaves us with questions about whether today’s future graduates will be able to sustainably afford their debts.
Eric Mun, another student making his way through this gauntlet, talked about his family’s fears for his future in medicine.
“My parents already implied that my older brother is probably going to be the one that gets to go,” – Eric Mun
This remark shows the degree of the growing concern. Everyone is worried that the lack of new funding will drive all but the most financially fortunate from medical training, enabling only those with the resources to pay.
Richard Anderson, a healthcare consumer advocate, underscored the urgent need for reform.
“If the goal is truly to make America healthy again, then we need to have a strong physician workforce … We should be coming up with ideas to make it more accessible for people who want to be doctors as opposed to hindering that,” – Richard Anderson
As a result, students are starting their careers under tremendous financial pressures. They face unimaginable challenges, and they tirelessly push for changes to address access and representation in medical education.