New Limits on Student Loans Could Exacerbate Physician Workforce Shortages

August 1, 2025

In the past, medical students could rely on Grad PLUS loans entirely to fund a medical education

Federal bill H.R.1, now signed into law, imposes new caps on federal student loans that limit borrowing for professional schools at $50,000 per year. The measure particularly affects medical students as tuition often exceeds $300,000 over four years.

As many of you already know, the Grad PLUS loan program previously allowed graduate students to borrow their institution’s total cost of attendance, including living expenses.

A recent Chicago Tribune article chronicles the frustration of an aspiring future doctor upon learning about these changes to the Grad PLUS loans, which take effect July 1, 2026.

“It might mean there are people who want to be doctors that can’t be doctors because they can’t afford it,” said ISMS President Richard C. Anderson, M.D. “We should be coming up with ideas to make it more accessible for people who want to be doctors as opposed to hindering that.”

These restrictions on Grad PLUS loans arrive as a physician shortage looms. An Association of American Medical Colleges (AAMC) report projects a significant physician shortage in the United States, with a predicted shortfall of 86,000 physicians by 2036 for both primary and specialty care.

While private loans do remain an option to cover the gap, these loans often come with a higher interest rate.