Will Changes to the Student Loan System Worsen Physician Shortages?

WayOutWestMom
Thu, 26 Jun 2025 17:03:55 +0000

Becker's Hospital Review | Healthcare News & Analysis – 26 Jun 25

Chasing paychecks, not purpose: Student loan caps may shape physicians'...

Provisions in the “One Big Beautiful Bill Act” would limit the amount of federal student loans medical students can borrow, and critics worry this could worsen physician shortages across rural areas and specialties. But for one chief medical officer,...

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The bill — which passed the House May 22 and is with the Senate, as of June 10 — would enact sweeping cuts to Medicaid and other healthcare programs. The bill would also eliminate the Grad PLUS loan program for graduate students, including medical students. It would also cap federal loans for graduate and professional students to $150,000 and limit eligibility for the Public Service Loan Forgiveness program by no longer allowing loan repayment made during medical residency to count toward forgiveness. Students would still be allowed to take as much debt from private loans as they want.

The Association of American Medical Colleges found medical students graduate with an average debt of $206,924 in 2023. Supporters of the bill say the changes could lower tuition costs and limit taxpayer exposure. Medical associations have also spoken out against the bill over concerns it would add barriers to medical education and residency, and could worsen opportunities for clinical training in rural and underserved areas.

Teaching hospitals and medical schools have said the provisions could worsen the physician shortage by limiting the number of students able to afford school.