Loading Curie Briefs...
Getting the latest healthcare news for you
Getting the latest healthcare news for you
A sweeping federal rule that took effect July 1 has capped student loans for medical students at $50,000/year and eliminated the Grad PLUS program — leaving many facing a significant funding gap. Medical schools, associations, and students are scrambling to adapt, turning to scholarships, private lenders, and military service programs. Experts warn the changes could worsen the primary care physician shortage.
A major federal policy shift is reshaping how aspiring doctors finance their education. As of July 1, 2026, the Department of Education's RISE rule caps federal direct unsubsidized loans at $50,000/year and $200,000 total for medical students, and eliminates the Graduate PLUS program — which previously allowed borrowing up to the full cost of attendance. With median annual costs running $75,000–$111,000+ at many schools, the gap between what federal loans cover and what students owe is substantial.
Medical schools are responding with a mix of expanded scholarships, updated lender lists, and financial literacy programs. Associations like AAMC and AACOM have brokered partnerships with private lenders (ELFI and Sallie Mae, respectively) to help bridge the gap. Some students, like one high-scoring applicant facing $111,000/year in costs, are now eyeing military scholarship programs as an alternative.
Key Takeaways:
Why it matters: The loan cap doesn't reduce tuition — it shifts financial risk onto students. Physicians and advocates warn this could deter students from lower-income backgrounds and push more away from lower-paying primary care careers, deepening a projected shortage of up to 40,400 primary care physicians by 2036.
