Medical students could feel burn from Trump's new law

Axios

18 hours ago

Many medical school students will feel a financial squeeze from President Trump's tax-and-spending bill due to a new $200,000 cap on student loan borrowing and the cancellation of a federal program that helps defray their living expenses during school.
Why it matters: The country is projected to face a shortage of 187,130 doctors by 2037.
The concern within medical professions is the cutbacks will make it harder to afford a medical education and drive up debts — especially for low-income students and people from other underrepresented backgrounds.
"These changes risk deterring qualified students from pursuing medical careers," David Bergman, who leads government relations for the American Association of Colleges of Osteopathic Medicine, told Axios.
State of play: The spending bill signed by President Trump this month will impose a lifetime $200,000 cap on medical and law school students. But the average medical school debt is more than $210,000, according to the Association of American Medical Colleges.
The bill also ends the Education Department's Grad PLUS federal loan program, which allows graduate students to cover their full tuition and living expenses through the federal government after they've exhausted their available direct loans.
The provisions go into effect before the 2026-2027 school year. The lifetime cap signed into law is higher than the $150,000 lifetime cap that Congress originally considered.
Threat level: More than 70% of last year's medical school graduates had education debt, per the Association of American Medical Colleges.
Students can get private loans, but they often come with less favorable terms and conditions and may require co-signers, which can be difficult for low-income applicants. They're also not subject to the public service loan forgiveness program.
What they're saying:"The consequences of this bill won't just be seen in graduation statistics. They'll be seen in emergency rooms, labor and delivery wards, and graveyards," Timberly Washington, a fourth-year medical student in Alabama, wrote in an op-ed published in Stat last week.
Students from rural areas are likeliest to practice in outlying communities. But graduating with a mountain of debt will make it harder for new doctors to stay when salaries are typically higher in urban centers, Washington wrote.
The other side: The bill helps to end waste in the federal government by capping federally subsidized loans for high earners, White House spokesperson Kush Desai told Axios.
"Future physicians, surgeons, dentists, researchers, and other well-credentialed professionals who will command premium salaries upon entering the workforce are prime bets for the private student loan market," he said in an email.
Proponents of the policy also point out medical schools' typically low acceptance rates, which likely means they'll fill all of their openings even if application rates decrease.
Yes, but: 1 in 5 physicians hope to leave their practice in the next two years and 1 in 3 want to reduce hours, according to the American Medical Association — meaning the U.S. is about to need many more doctors.