(PatriotNews.net) – Trump’s plan to slash Grad PLUS loans and cap medical student borrowing at $150,000 threatens to derail thousands of future doctors’ careers while the nation faces a critical physician shortage of 86,000 by 2036.
Key Takeaways
- Trump’s FY 2026 budget proposes eliminating Grad PLUS loans and capping professional school borrowing at $150,000, less than half the current median cost of medical education ($286,000).
- Over 75% of medical students rely on federal loans, with 2024 graduates averaging $212,341 in debt—far exceeding the proposed cap.
- Republicans claim the $34.7 billion saved from cutting Grad PLUS would help fund tax cuts, while medical organizations warn this could worsen physician shortages.
- The changes would force aspiring doctors to rely on high-interest private loans or abandon medical careers altogether, disproportionately affecting low-income and minority students.
- These education cuts accompany $300 million reductions to SNAP and Medicaid restrictions expected to remove 14 million Americans from healthcare coverage.
Medical Education Under Attack as Doctor Shortage Looms
At a time when America faces a projected shortage of up to 86,000 physicians by 2036, the Trump administration’s FY 2026 budget proposal takes direct aim at the financial lifeline that makes medical education possible for thousands of future doctors. The sweeping changes would eliminate Grad PLUS loans entirely and impose a $150,000 borrowing cap on professional school students—a figure that doesn’t even cover one year at many medical schools. These cuts would devastate the pipeline of new physicians precisely when an aging population needs them most.
“The elimination of Grad PLUS loans and the imposition of a $150,000 cap on student borrowing would be devastating for medical students and would exacerbate the physician shortage,” warns the American Medical Association. “The average medical student graduates with more than $200,000 in debt, and the cost of attending medical school continues to rise.”
The Math Doesn’t Add Up for Future Doctors
The stark reality of medical education costs exposes the impracticality of the proposed $150,000 cap. The median cost of attending a public medical school has reached $286,000, while private schools often exceed $400,000 for the full four-year program. With 75% of medical students already relying on federal loans and 2024 graduates averaging $212,341 in debt, the proposed cap would leave a massive funding gap that most students simply cannot bridge through personal savings or family support.
Republicans justify these cuts by claiming they will pressure institutions to lower tuition costs, citing a 2023 National Bureau of Economic Research paper suggesting unlimited Grad PLUS loans increased costs without improving access. However, medical schools counter that significant tuition reductions are unrealistic given rising operational costs, faculty salaries, and the expensive technology required for modern medical training. The $34.7 billion saved would primarily fund tax cuts rather than address educational affordability.
Diversity in Medicine at Risk
The proposed changes would have devastating consequences for diversity in healthcare. With 33% of medical students coming from Pell-eligible backgrounds, these cuts would disproportionately impact low-income and minority students who lack family wealth to fill the funding gap. The Asian Pacific American Medical Student Association has strongly condemned the proposal, noting it would reverse decades of progress in creating a physician workforce that reflects America’s diverse population.
“These proposed changes would disproportionately impact students from low-income backgrounds and communities of color,” states the Association of American Colleges of Osteopathic Medicine. “The $150,000 cap wouldn’t cover even one year at many medical schools, forcing talented students to choose between crushing private loan debt or abandoning their dreams of becoming physicians.”
Private Loans: A Dangerous Alternative
Students forced beyond the $150,000 federal loan cap would have no choice but to turn to private lenders, who offer loans with significantly higher interest rates, variable terms, and none of the protections or forgiveness options available through federal programs. This shift would particularly harm students planning to work in primary care, rural medicine, or underserved communities—precisely the specialties facing the most severe shortages and offering lower compensation to offset educational debt.
While median MD program tuition decreased slightly from $53,582 in 2020 to $50,218 in 2025, living expenses rose 11% to $21,950 annually during the same period. The proposed changes ignore this economic reality, leaving students to cover basic living expenses through high-interest credit cards or by working jobs that distract from their demanding studies—potentially compromising their medical education quality.
Part of a Broader Assault on Social Programs
The attack on medical education funding doesn’t exist in isolation. The same budget proposal includes $300 million in cuts to the Supplemental Nutrition Assistance Program (SNAP) and Medicaid restrictions projected to remove 14 million Americans from healthcare coverage. This comprehensive approach reveals a troubling pattern: reducing support for vulnerable populations while simultaneously undermining the education of the very healthcare providers who would serve them.
The timing couldn’t be worse. As baby boomers age and require more medical care, the Association of American Medical Colleges projects a shortage of between 37,800 and 86,000 physicians by 2036. Rather than addressing this looming crisis, the proposed budget cuts would exacerbate it by creating insurmountable financial barriers for the next generation of doctors—particularly those from working-class backgrounds who would be most likely to serve in shortage areas.
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