New federal limits on student borrowing that were enacted under President Donald Trump's signature One Big Beautiful Bill Act are sparking warnings from medical school leaders and doctors' groups concerned that the loan caps make it harder for future doctors to afford medical school. In a new op-ed for The Hill, Kansas City University President Marc B. Hahn said the new rules will worsen an already growing physician shortage in the United States.
"Medical education and access to care are closely connected," Hahn said. "When qualified students face greater challenges financing their education, communities may ultimately feel the effects through fewer physicians and longer waits for care." Under the Trump administration’s changes, federal borrowing for medical students is limited to $50,000 per year and $200,000 total. Previously, many students could borrow up to the full cost of attendance through Graduate PLUS loans.
Ellen Keast, communications director for the under secretary of the Department of Education, told Newsweek, “For two decades, colleges and universities have been able to charge virtually unlimited tuition, even as many student loan borrowers see little to no return on their investment." During this time, tuition has risen faster than any other household expense, and 71 percent of graduates with debt report delaying major life milestones, Keast said. "The Trump Administration is working to correct this longstanding imbalance by ending a system that pushed students into debt they often could not repay and by promoting access to high quality education that serves students, not institutional bottom lines," she added. According to the Health Resources and Services Administration, the U.S. is already projected to face a shortage of roughly 141,000 physicians by 2038.
Lowering access to financing for med school could discourage qualified students from pursuing the profession, particularly those from lower-income families and rural communities, experts say. Trump’s 2025 budget reconciliation law eliminated Graduate PLUS loans and imposed new borrowing limits for professional students. Under the new rules, medical students generally can borrow up to $50,000 annually in federal loans, and total federal borrowing is generally capped at $200,000 for professional education.
An aggregate federal borrowing limit of $257,500 also applies. And Graduate PLUS loans, which previously allowed students to borrow up to the full cost of attendance, are being phased out entirely. The Department of Education framed the new limits as a way to prevent tuition inflation and reduce excessive borrowing while minimizing the impact on taxpayers.
However, some remained concerned about the new caps specifically when it comes to med school, as the field is already facing a severe workforce shortage in the coming years. These two professions often have student loan debt approaching $500,000,” Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek. Baby Boomers are now 62 to 80 years old, entering the stage of life when they will require the most medical care, and they will require that care for the next forty years.” Medical schools are alarmed for good reason, experts say.
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