Ann Intern Med
Medical students priced out by new federal loan caps
Clinical takeaway: New loan caps could restrict access to medical training and could worsen physician shortages, particularly in underserved areas.
A policy aimed at limiting student debt may reshape who can afford to become a physician. The One Big Beautiful Bill Act (OBBB) caps federal student loans for medical school at $200,000 and total educational borrowing at $257,000.
These limits are close to current average debt levels, leaving many students unable to fully finance medical school through federal loans. The law was enacted in July 2025, with limits applying to new federal borrowing.
An analysis of 2025 graduates from 155 medical schools found that 47% exceeded $200,000 in medical school debt and 33% exceeded $257,000 overall. Authors estimate that one-third to one-half of current medical students could be priced out or pushed toward higher-risk private loans.
Medical school costs have risen sharply, with most graduates carrying substantial debt. The caps would disproportionately affect students from lower-income and rural backgrounds, potentially reducing diversity and shifting where physicians ultimately practice.
“By pricing out many qualified applicants, the OBBB loan caps are likely to impede efforts to address physician shortages, reduce income diversity within medicine, and deepen geographic disparities in physician practice,” the authors conclude.
Source: McCann NC, Walensky RP. Ann Intern Med. April 7, 2026. Financing Medical School in a Changing Policy Landscape: Consequences for Students and the Physician Pathway