Federal Policy Changes to Student Loans
Affecting Health Professionals
Recent federal policy changes are altering how much graduate students in healthcare fields can borrow in federal student loans. Beginning July 1, 2026, only degrees labeled “professional,” such as MD, DO, dentistry, law, and pharmacy, will qualify for the higher federal loan cap of fifty thousand dollars per year and two hundred thousand dollars total. This is usually not enough to cover these degrees. Programs like nursing, physician assistant studies, physical therapy, occupational therapy, and many other allied-health degrees have been reclassified as “non-professional,” which lowers their federal loan limit to twenty thousand five hundred dollars per year and one hundred thousand dollars total. This shift may make it more difficult for nurses, PAs, and other essential healthcare providers to finance the advanced training required for their careers, and many organizations warn that it could worsen existing workforce shortages.
Bhuvana's Take on Student Loans
Students starting medical school and other health professions programs in 2026 face a stark reality: federal loans will no longer cover their full cost of attendance (Student Doctor Network, 2025; CNBC, 2025), forcing them to develop alternative financing strategies. Many students anticipate taking out substantial private loans, with some medical students estimating they'll need $200,000 or more in private financing (CNBC, 2025) to bridge the gap between the $50,000 annual federal cap and actual costs that often exceed $80,000 per year at private institutions. Students are being advised to aggressively pursue scholarships and grants, with financial aid experts recommending searches by field of study, ethnicity, and enrollment at schools offering merit-based aid (NASFAA, 2025; Earnest, 2025). Some prospective students are strategically choosing lower-cost schools like LECOM or in-state public institutions to minimize their borrowing needs (Reddit r/medicalschool, 2025; CNBC, 2025), while others are considering part-time enrollment combined with employer tuition benefits to reduce debt (NASFAA, 2025). However, the most sobering response comes from students who worry these changes will force them to abandon their graduate school plans entirely (Higher Education Today, 2025; Student Doctor Network, 2025), particularly those from disadvantaged backgrounds who lack family financial support or access to favorable private loan terms. The consensus across forums like Student Doctor Network and Reddit is clear: while students are exploring every possible avenue—from scholarships to choosing cheaper programs—many fear that limiting federal borrowing will make advanced degrees financially impossible for those without significant family wealth or perfect credit (AAMC, 2025).
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By Bhuvana Lavu