Latest news with #ParentPLUS
Los Angeles Times
4 hours ago
- Business
- Los Angeles Times
How Trump could make it harder for you to see a doctor
The Trump administration's One Big Beautiful Bill Act puts so many people at risk of losing their health insurance and food assistance, it's hard to focus on other fires set by the new law. And yet — there's one crucial conflagration I hope the state of California will fight. The budget bill contains multiple changes in federal student loan programs that will make it harder for many students to even think about getting an undergraduate degree at the University of California or at Cal State. Eligibility for Pell Grants and other loans and grants, the way repayment works, and annual and lifetime limits on borrowing by students and their parents (via Parent PLUS loans) are all changing. But let me narrow my focus to students enrolling in law, medical, pharmacy or other professional schools, the segment of the student 'market' I'm most familiar with because of my career as a professor at UC Law San Francisco. When I started teaching, the citizens of California very generously supported professional training. I recall that tuition at UC Law (then UC Hastings) was — well, there was no tuition, just fees. But with dramatically reduced public support over the years, the costs have gone up and up. Tuition and required fees alone at UC Law SF are about $60,000 a year. At medical, dental or pharmacy school? In the $50,000 to $60,000 range as well. And that's without food, housing and other expenses of daily living. (For perspective, UC's tuition costs are still less expensive than private schools: At Stanford Law School tuition will set you back about $77,000 a year and at Stanford School of Medicine, $67,000.) Under the OBBBA, professional-school students will no longer be able to get more than $50,000 a year (up to $200,000 total for a degree) in federal student loans. That leaves a significant gap in annual tuition and fees, and offers no help on the additional costs — UC calculates the total cost for one year of dental school at $104,000. There are private loans available. But federal student loans have more flexibility, particularly in repayment plans, and students need neither a strong credit history nor a co-signer to get them. The students who would need to borrow the most are the least likely to have a strong credit history or a family member who would be an acceptable co-signer for a private loan. And private loan rates are almost always higher than the government's. So just as the tax provisions in this newly passed law make the rich richer, I fear the student loan provisions will be adequate for the better off but prevent many working-class young people from obtaining professional degrees. So much for policies that support the American dream. California could control this fire through its own student loan program, adding funding to fill the gap created by the new federal rules. One option: Create an additional program under the auspices of the California Student Aid Commission, whose current aid programs are limited in scope. It's true that the state budget is already stretched thin — but this is about loans, so the money will, for the most part, be returned with interest. Do we need to be helping future professionals get an education? Absolutely! As our population ages, the demands for health professionals are only increasing. Given the long trajectory of medical, nursing and pharmacy students' education, we can't wait for another administration to come into office and fix the loan situation. We should prevent a reduction in the numbers of practitioners graduated now. We already have shortages of health professionals: Have you tried recently to find a primary care physician or pediatrician who is taking new patients? And the nurse shortage is a major problem — UC San Francisco estimates the state is short 36,000 nurses. As for lawyers, if you doubt the need for more, consider 'the justice gap.' Facing eviction? Have problems with an employer? Unable to access public benefits? Suffering domestic violence? There are not nearly enough legal aid lawyers to help, leaving many at a great disadvantage. And the young people most likely to find the new federal loan rules a barrier to law school are also likely to best understand the need for more lawyers in public interest and public service jobs, and perhaps the most likely to aspire to such jobs. The state has had a loan repayment program for those who practice public interest law. In addition to bolstering federal student loans with state loans, California could reinvigorate and expand the repayment program to cover a greater variety of jobs and to repay more than the $11,000 limit. While the federal government is acting to burn things down, our state should intervene to build things up, including the talent pool we need for the decades ahead. Marsha Cohen, emerita professor of law at UC Law San Francisco, twice served as the school's dean of admissions, which included supervising its financial aid program.
Forbes
13 hours ago
- Business
- Forbes
4 Million Borrowers Will Lose Student Loan Forgiveness Unless They Act Within 11 Months
Millions of Americans will soon be cut off from critical federal student loan forgiveness and repayment programs, following passage of President Donald Trump's 'Big, Beautiful Bill' earlier in July. Under the bill, Parent PLUS borrowers will be blocked from several debt relief options, unless they take specific steps by certain deadlines to preserve access. The changes are part of a broader package of reforms that will be implemented under the legislation over the course of the next several years. The bill repeals several popular income-driven repayment plan programs, creates a new repayment plan, imposes new caps and borrowing limits without directly lowering the cost of education, and limits the ability of the Department of Education to establish new relief options. Some of the changes are immediate, while others will be phased in over time. But some of the most significant student loan reforms will hit the roughly four million Americans who have Parent PLUS loans the hardest. Here's what these borrowers should know. Parent PLUS Loans Had Been Eligible For Student Loan Forgiveness Parent PLUS loans are a type of federal student loan issued to the parent of an undergraduate borrower. While the student is the person who benefits from the loan by having their education paid for, the parent is the borrower. And it is the parent, not the student, who is legally responsible for the repayment of the loan. These types of student loans have historically been able to access critical federal student loan forgiveness and relief programs, albeit on a more limited basis than other types of student debt. Individual Parent PLUS loans are ineligible for income-driven repayment plans, but can become eligible for Income-Contingent Repayment if the borrower consolidates their Parent PLUS loans into a federal Direct consolidation loan. ICR historically has allowed for student loan forgiveness after 25 years in repayment, and also is a qualifying repayment plan for the Public Service Loan Forgiveness program, or PSLF. ICR is an expensive plan, and Parent PLUS borrowers typically cannot access more affordable income-driven options like IBR or Pay As You Earn. But for lower income borrowers, or people who have had a reduction in their income due to job loss or retirement, ICR can provide a lifeline by keeping monthly payments affordable and providing a pathway to eventual student loan forgiveness. Big, Beautiful Bill Imposes New Student Loan Forgiveness Restrictions For Parent PLUS Borrowers But President Trump's 'Big, Beautiful Bill' fundamentally changes the landscape for Parent PLUS borrowers. The bill will repeal several existing income-driven repayment options, including ICR. It preserves the IBR plan, which allows for student loan forgiveness after 20 or 25 years in repayment. The bill also creates a new income-driven option called the Repayment Assistance Plan, or RAP, that allows for student loan forgiveness after 30 years in repayment. Both plans qualify for PSLF. But Parent PLUS borrowers would be ineligible for RAP, even if they consolidate their loans. The only way for Parent PLUS borrowers to maintain access to income-driven repayment under the changes imposed by the legislation would be to consolidate their loans (if they haven't already done so) by July 1, 2026, and enroll in the IBR plan – which the bill opens up to consolidated Parent PLUS loans – by July 1, 2028. Borrowers enrolled in the ICR plan would be converted to IBR or given the opportunity to switch once ICR is phased out. 'The Big Bill significantly changes Parent PLUS borrowers' repayment options,' said the National Consumer Law Center in a blog post published earlier in July following the bill's passage. 'Only Parent PLUS borrowers that consolidate their loans before July 1, 2026 and are enrolled in any IDR plan between now and July 1, 2028 will be eligible for an income-driven repayment plan after the SAVE, ICR, and PAYE plans are eliminated on or before July 1, 2028. Those borrowers will be eligible for the Income-Based Repayment (IBR) plan. They will not be eligible for RAP." All other Parent PLUS borrowers would become permanently ineligible for IBR and, therefore, any income-driven repayment option. That also means they would effectively be cut off from student loan forgiveness. That is because, given that Parent PLUS borrowers are ineligible for RAP, IBR will be the only surviving income-driven plan available that provides a pathway to eventual student loan forgiveness. And borrowers typically must also enroll in an income-driven plan to pursue PSLF, as well. Without access to IBR, Parent PLUS borrowers cannot access these routes to student loan forgiveness. 'Borrowers pursuing Public Service Loan Forgiveness (PSLF) should note that while payments in a 10-year standard plan qualify for forgiveness, payments in standard plans with repayment periods longer than 10 years do not qualify,' said NCLC the blog post. 'Existing Parent PLUS borrowers who do not jump through these hoops in time will be locked out of income-driven repayment options, which could make it very difficult to manage their loans if they cannot afford fixed payments.' Taking Out New Loans Next Year Could Also Limit Student Loan Forgiveness Existing Parent PLUS borrowers should also be aware that taking out any new student loans or Parent PLUS loans on or after July 1, 2026, or consolidating existing loans after that date, would also effectively cut them off from student loan forgiveness. By taking out a new loan or consolidating after the cutoff, the individual would be considered a new borrower and would lose access to IBR and, therefore, student loan forgiveness. The only repayment options for new borrowers starting on July 1, 2026 would be RAP (which Parent PLUS borrowers cannot access, even if they consolidate their loans) or a Standard plan. 'Borrowers that take on new Parent PLUS loans or consolidate their existing Parent PLUS loans after July 1, 2026 will only be eligible for the new standard repayment plan,' said NCLC. 'Parent PLUS borrowers should consider consolidating now, before July 1, 2026, and enrolling in the Income-Contingent Repayment (ICR) Plan so that they can preserve their ability to make reduced payments in an IDR plan in the future.' Borrowers who take out new student loans in the future may also lose access to important deferment options, as well. 'If borrowers consolidate or take on Parent PLUS loans after July 1, 2027 those loans will not be eligible for the economic hardship or unemployment deferments and will only be eligible for up to 9 months of many forbearances in a 2 year period,' said the NCLC. 'This could mean increased hardship and defaults for low-income Parent PLUS borrowers in the future.' Thus, Parent PLUS borrowers who want to preserve access to affordable repayment options and eventual student loan forgiveness under income-driven repayment plans and PSLF should consider consolidating their loans via the federal Direct loan program before July 1, 2026. And they should also consider enrolling in an income-driven repayment plan before July 1, 2028, and avoiding any further borrowing so that they don't get cut off from these programs.
Miami Herald
4 days ago
- Business
- Miami Herald
Changes to federal student loans leave aspiring medical students scrambling to cover costs
CHICAGO - Twenty-year-old Eric Mun didn't want to believe it: Only one kid in the family could make it to medical school - and it wasn't going to be him. Mun had done everything right. He graduated high school with honors, earned a scholarship at Northwestern University and breezed through his biology courses. He immigrated to Alabama from Korea as a toddler. From the quiet stretches of the South, he dreamed of helping patients in a pressed white coat. But dreams don't pay tuition. And with new borrowing limits, Mun's family can only support one child through school. "My parents already implied that my older brother is probably going to be the one that gets to go," Mun said. President Donald Trump's sweeping "big, beautiful" tax and spending bill, signed into law earlier this month, imposes strict new caps on federal student loans, capping borrowing for professional schools at $50,000 per year. The measure particularly affects medical students, whose tuition often exceeds $300,000 over four years. Aspiring physicians like Mun have been thrown into financial uncertainty. Many members of the medical community say the measures will send shock waves through a system already laden with economic barriers, discouraging low-income students from pursuing a medical degree. "It might mean there are people who want to be doctors that can't be doctors because they can't afford it," said Richard Anderson, president of the Illinois State Medical Society. Before the passage of Trump's budget bill, the Grad PLUS loan program allowed graduate students to borrow their institution's total cost of attendance, including living expenses. The program was slashed as part of a broader overhaul to the federal student loan system. Now, beginning July 1, 2026, most graduate students will be capped at $20,500 in federal loans per year, with a total limit of $100,000. Students in professional schools, like medical, dental or law school, will face the $50,000 annual cap and a total limit of $200,000. Mun's parents work at an automobile assembly plant. Throughout high school, he knew he would have to rely on scholarships and federal loans to pay his way through college. Mun's voice faltered. "I'm just trying to remain hopeful," Mun said. Also folded into the bill: the elimination of several Biden-era repayment plans, cuts to Pell Grants and limits to the Parent PLUS loans program, which allows parents of dependent undergraduates to borrow. Proponents of the Republican-backed bill said the curbed borrowing will incentivize medical schools and other graduate programs to lower tuition. The tuition of most Chicago-area medical schools is nearly $300,000 for four years, not including cost-of-living expenses. Northwestern University's Feinberg School of Medicine has a $465,000 price tag after accounting for those indirect costs, according to the school's website. Rosalind Franklin University of Medicine and Science trails closely behind at nearly $464,000. "One of the main concerns about the Grad PLUS program is money that is going to subsidize institutions rather than extending access to students," said Lesley Turner, an associate professor at the University of Chicago Harris School of Public Policy. Still, many medical professionals expressed doubt that schools will adjust their costs in response to the bill. Tuition for both private and public schools has been steadily climbing for decades, up 81% from 2001 after adjusting for inflation, according to the Association of American Medical Colleges. There's some evidence that Grad PLUS may have contributed to those tuition hikes. A study co-authored by Turner in 2023 found that prices increased 65 cents per dollar after the program's introduction in 2006. There was also little indication that Grad PLUS had fulfilled its intended goal of expanding access to underrepresented students. But Turner cautioned against the abrupt reversal of the program. After accounting for inflation, the lifetime borrowing limits now placed on graduate students are lower than they were in 2005, she said. Many students may turn to private loans to cover the gap, often at higher interest rates. More than half of medical students relied on Grad PLUS loans, according to AAMC. The median education debt for indebted medical students is around $200,000, with most repayment plans lasting 10 to 20 years. The median stipend for doctors' first year post-MD was just $65,100 in 2024. "I think for many reasons, it would have been reasonable to put some sort of limit on Grad PLUS loans, but I think this is a very blunt way of doing it," Turner said. In a high-rise on Northwestern's downtown campus this month, 20 undergraduate students and alums from local colleges gathered for the Chicago Cancer Health Equity Collaborative Fellows program. The eight-week summer intensive offers aspiring medical professionals a deep dive into cancer health disparities information and research. Participants like Mun have been left reeling after the flurry of federal cuts. Alexis Chappel, a 28-year-old graduate of Northeastern Illinois University, watched her dad struggle with addiction growing up. She was deeply moved by the doctors who supported his recovery, and it inspired her to pursue medicine. But she has no idea how she'll cover tuition. "I feel like it's in God's hands at this point," Chappel said. "I just felt like it's a direct attack on Black and brown students who plan on going to medical school." Just 10% of medical students are Black and 12% are Latino, according to AAMC enrollment data. Socioeconomic diversity is also limited: A 2018 analysis found that 24% of students came from the wealthiest 5% of U.S. households. Tricia Pendergrast, who graduated from Feinberg in 2023, relied entirely on Grad PLUS loans to fund her medical education. Juggling classes and clinicals, she had little money saved and no steady stream of income. Pendergrast was so strapped for cash that she enrolled in SNAP benefits - a program also cut under Trump's budget bill. Now an anesthesiologist at University of Michigan Health, she's documented her concerns on TikTok for her 48,000 followers. "It's not going to improve representation, and it's not going to improve access," Pendergrast said. "It's going to act as a deterrent for people who otherwise would be excellent physicians." For low-income students, the application process is already fraught with economic obstacles, Pendergrast said. Metrics like GPA and the Medical College Admissions Test, or MCAT, are heavily weighted in admissions, and may disadvantage students from underresourced schools. Many students also lack mentorships or networks to guide them through the process, she noted. "I think the average medical student is going to be richer and whiter, and not from rural areas and not from underserved communities," Pendergrast said. The elimination of Grad PLUS loans comes amid a mounting nationwide physician shortage. A recent AAMC report predicted a shortfall of 86,000 physicians by 2036. Meanwhile, a significant portion of the workforce is poised to enter retirement: The U.S. population aged 65 and older is expected to grow 34.1% over the next decade. The shortage is particularly concentrated in primary care. In practice, that means longer waiting times for patients, and an increased caseload on physicians, who may already suffer from burnout. "If the goal is truly to make America healthy again, then we need to have a strong physician workforce … We should be coming up with ideas to make it more accessible for people who want to be doctors as opposed to hindering that," Anderson said. Sophia Tully, co-president of the Minority Association of Pre-Med Students at Northwestern, said she and her peers have struggled to reconcile with a system that often feels stacked against them. The 21-year-old plans on taking an extra gap year before medical school in an effort to save money. Tully summed up the environment on campus: "For lack of a better word, people are panicking." Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Time of India
23-07-2025
- Business
- Time of India
Student loan shakeup: Key dates and changes every borrower needs to know before it's too late
Student Loan Shake-Up 2025: The student loan system in the U.S. is undergoing a massive transformation in 2025, and millions of borrowers are directly affected. If you've ever taken out federal student loans—or plan to in the future—there are urgent deadlines, new repayment options, and policy changes you absolutely need to understand. Whether you're on the SAVE plan, approaching forgiveness under IBR, considering graduate school, or repaying Parent PLUS loans, this guide will walk you through everything changing, when it's happening, and how to make smart decisions now before it's too late. Explore courses from Top Institutes in Please select course: Select a Course Category MBA Cybersecurity CXO Finance Product Management Leadership Public Policy Digital Marketing Data Science Artificial Intelligence Degree Operations Management Technology Design Thinking Data Science MCA PGDM Data Analytics Management Project Management others healthcare Others Healthcare Skills you'll gain: Financial Management Team Leadership & Collaboration Financial Reporting & Analysis Advocacy Strategies for Leadership Duration: 18 Months UMass Global Master of Business Administration (MBA) Starts on May 13, 2024 Get Details Skills you'll gain: Analytical Skills Financial Literacy Leadership and Management Skills Strategic Thinking Duration: 24 Months Vellore Institute of Technology VIT Online MBA Starts on Aug 14, 2024 Get Details Major student loan overhaul begins in august 2025 The first major wave of the student loan shake-up begins on August 1, 2025. Here's what changes and who is impacted: by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Italian Craftsmanship. Velasca Undo Interest restarts for save borrowers Millions of borrowers currently enrolled in the Biden-era SAVE Plan will see interest resume on their loans starting August 1, 2025. This comes after a temporary pause tied to legal challenges and federal policy shifts. Who's impacted? About 7.7 million borrowers under the SAVE plan. What to do now? Borrowers are being strongly encouraged to consider switching to an Income-Based Repayment (IBR) plan to avoid compounding interest and possible balance growth. This change is a result of the "Big Beautiful Bill" signed by President Trump, which eliminates the SAVE plan entirely in favor of a more streamlined system. Live Events The repayment system gets completely restructured This is the most critical date for all borrowers. On July 1, 2026, the current complex array of repayment plans will be replaced by just two core options. Here's how it breaks down: Introduction of the repayment assistance plan (RAP) Replacing SAVE, PAYE, REPAYE, and ICR, borrowers will now choose between: Standard 10-Year Repayment – The traditional fixed payment option. Repayment Assistance Plan (RAP) – A new income-driven plan that: Offers forgiveness after 30 years of qualifying payments Starts payments as low as $10/month Includes a $50/month per-child credit for dependent borrowers Capped based on income, and limits ballooning interest Borrowers on legacy plans will have until July 1, 2028 to switch to either RAP or IBR before being automatically reassigned. Tighter borrowing caps for new federal student loans Also starting July 1, 2026, federal loan borrowing limits are being reduced to control rising student debt levels: Graduate students : $100,000 lifetime cap Professional programs (law, med, dental) : $200,000 limit Parent PLUS loans : $65,000 per child limit If you plan to enroll in graduate school or finance your child's education with PLUS loans, you must plan ahead now, as these lower limits could significantly impact funding options. Final deadline to switch old repayment plans: Borrowers with loans issued before July 1, 2026, must take action before July 1, 2028. Mandatory transition from deprecated plans: If you're on SAVE, PAYE, REPAYE, or ICR, you must switch to IBR or RAP by July 2028. If you don't, the Department of Education will automatically reassign your repayment plan—likely based on income, but without your input. Borrowers are encouraged to log into their servicer accounts, use the Loan Simulator tool on and decide the best fit. Collections restart for defaulted loans: Another major shakeup that's already in effect—collections on defaulted student loans resumed on May 5, 2025. What this means if you're in default: Over 5 million borrowers who were in default are now once again subject to: Wage garnishment Tax refund seizure Social Security offset The Department of Education is actively reaching out to help borrowers rehabilitate their loans or consolidate them into good standing. If you're impacted, it's critical to contact your loan servicer immediately. Income-based repayment forgiveness temporarily paused: As part of this policy overhaul, the Trump administration has paused forgiveness processing for borrowers nearing completion under IBR and other income-driven repayment plans. Why the pause, and what to expect: This temporary halt—affecting nearly 2 million borrowers—was put in place while repayment systems are updated to match the new legal framework. You will still receive credit for eligible payments made. Forgiveness will resume once systems are reconfigured, likely with retroactive application or refunds for excess payments. Your action plan: how to stay ahead of the 2025–2026 student loan changes Here's what you need to do based on your situation: Your Situation Recommended Action You're on the SAVE plan Switch to IBR before August 1, 2025 to avoid interest buildup You're nearing forgiveness under IBR Stay on IBR – forgiveness is paused but expected to resume You're planning to borrow for grad/professional school Plan for stricter limits starting July 1, 2026 – consider private options You're repaying via PAYE, ICR, or REPAYE Prepare to transition to IBR or RAP by July 1, 2028 You're in default Contact your servicer immediately to explore rehabilitation options Bookmark and monitor updates from trusted sources like the Department of Education, Investopedia, AP News, and major finance outlets. Don't wait to act The 2025 student loan changes are not just administrative tweaks—they are foundational reforms to how federal loans are repaid, forgiven, and disbursed. Every borrower—past, present, or future—needs to evaluate their situation now, understand the key dates, and make the right plan to avoid interest spikes, missed forgiveness, or default. Whether you're about to graduate, already working toward loan forgiveness, or helping a child through college, the choices you make in the next 12 months will shape your financial future for decades. FAQs: Q1. What is the student loan repayment changes 2025 update about? It's a major overhaul of federal student loans, replacing SAVE and changing repayment plans, interest rules, and borrowing limits. Q2. When does the SAVE student loan interest restart? Interest restarts on SAVE loans from August 1, 2025, so switching plans before then is key.
Chicago Tribune
23-07-2025
- Business
- Chicago Tribune
Changes to federal student loans leave aspiring medical students scrambling to cover costs
Twenty-year-old Eric Mun didn't want to believe it: Only one kid in the family could make it to medical school — and it wasn't going to be him. Mun had done everything right. He graduated high school with honors, earned a scholarship at Northwestern University and breezed through his biology courses. He immigrated to Alabama from Korea as a toddler. From the quiet stretches of the South, he dreamed of helping patients in a pressed white coat. But dreams don't pay tuition. And with new borrowing limits, Mun's family can only support one child through school. 'My parents already implied that my older brother is probably going to be the one that gets to go,' Mun said. President Donald Trump's sweeping 'big, beautiful' tax and spending bill, signed into law earlier this month, imposes strict new caps on federal student loans, capping borrowing for professional schools at $50,000 per year. The measure particularly affects medical students, whose tuition often exceeds $300,000 over four years. Aspiring physicians like Mun have been thrown into financial uncertainty. Many members of the medical community say the measures will send shock waves through a system already laden with economic barriers, discouraging low-income students from pursuing a medical degree. 'It might mean there are people who want to be doctors that can't be doctors because they can't afford it,' said Richard Anderson, president of the Illinois State Medical Society. Before the passage of Trump's budget bill, the Grad PLUS loan program allowed graduate students to borrow their institution's total cost of attendance, including living expenses. The program was slashed as part of a broader overhaul to the federal student loan system. Now, beginning July 1, 2026, most graduate students will be capped at $20,500 in federal loans per year, with a total limit of $100,000. Students in professional schools, like medical, dental or law school, will face the $50,000 annual cap and a total limit of $200,000. Mun's parents work at an automobile assembly plant. Throughout high school, he knew he would have to rely on scholarships and federal loans to pay his way through college. Mun's voice faltered. 'I'm just trying to remain hopeful,' Mun said. Also folded into the bill: the elimination of several Biden-era repayment plans, cuts to Pell Grants and limits to the Parent PLUS loans program, which allows parents of dependent undergraduates to borrow. Proponents of the Republican-backed bill said the curbed borrowing will incentivize medical schools and other graduate programs to lower tuition. The tuition of most Chicago-area medical schools is nearly $300,000 for four years, not including cost-of-living expenses. Northwestern University's Feinberg School of Medicine has a $465,000 price tag after accounting for those indirect costs, according to the school's website. Rosalind Franklin University of Medicine and Science trails closely behind at nearly $464,000. 'One of the main concerns about the Grad PLUS program is money that is going to subsidize institutions rather than extending access to students,' said Lesley Turner, an associate professor at the University of Chicago Harris School of Public Policy. Still, many medical professionals expressed doubt that schools will adjust their costs in response to the bill. Tuition for both private and public schools has been steadily climbing for decades, up 81% from 2001 after adjusting for inflation, according to the Association of American Medical some evidence that Grad PLUS may have contributed to those tuition hikes. A study co-authored by Turner in 2023 found that prices increased 65 cents per dollar after the program's introduction in 2006. There was also little indication that Grad PLUS had fulfilled its intended goal of expanding access to underrepresented students. But Turner cautioned against the abrupt reversal of the program. After accounting for inflation, the lifetime borrowing limits now placed on graduate students are lower than they were in 2005, she said. Many students may turn to private loans to cover the gap, often at higher interest rates. More than half of medical students relied on Grad PLUS loans, according to AAMC. The median education debt for indebted medical students is around $200,000, with most repayment plans lasting 10 to 20 years. The median stipend for doctors' first year post-MD was just $65,100 in 2024. 'I think for many reasons, it would have been reasonable to put some sort of limit on Grad PLUS loans, but I think this is a very blunt way of doing it,' Turner said. In a high-rise on Northwestern's downtown campus last week, 20 undergraduate students and alums from local colleges gathered for the Chicago Cancer Health Equity Collaborative Fellows program. The eight-week summer intensive offers aspiring medical professionals a deep dive into cancer health disparities information and research. Participants like Mun have been left reeling after the flurry of federal cuts. Alexis Chappel, a 28-year-old graduate of Northeastern Illinois University, watched her dad struggle with addiction growing up. She was deeply moved by the doctors who supported his recovery, and it inspired her to pursue medicine. But she has no idea how she'll cover tuition. 'I feel like it's in God's hands at this point,' Chappel said. 'I just felt like it's a direct attack on Black and brown students who plan on going to medical school.' Just 10% of medical students are Black and 12% are Latino, according to AAMC enrollment data. Socioeconomic diversity is also limited: A 2018 analysis found that 24% of students came from the wealthiest 5% of U.S. Pendergrast, who graduated from Feinberg in 2023, relied entirely on Grad PLUS loans to fund her medical education. Juggling classes and clinicals, she had little money saved and no steady stream of income. Pendergrast was so strapped for cash that she enrolled in SNAP benefits — a program also cut under Trump's budget bill. Now an anesthesiologist at University of Michigan Health, she's documented her concerns on TikTok for her 48,000 followers. 'It's not going to improve representation, and it's not going to improve access,' Pendergrast said. 'It's going to act as a deterrent for people who otherwise would be excellent physicians.' For low-income students, the application process is already fraught with economic obstacles, Pendergrast said. Metrics like GPA and the Medical College Admissions Test, or MCAT, are heavily weighted in admissions, and may disadvantage students from underresourced schools. Many students also lack mentorships or networks to guide them through the process, she noted. 'I think the average medical student is going to be richer and whiter, and not from rural areas and not from underserved communities,' Pendergrast said. The elimination of Grad PLUS loans comes amid a mounting nationwide physician shortage. A recent AAMC report predicted a shortfall of 86,000 physicians by 2036. Meanwhile, a significant portion of the workforce is poised to enter retirement: The U.S. population aged 65 and older is expected to grow 34.1% over the next decade. The shortage is particularly concentrated in primary care. In practice, that means longer waiting times for patients, and an increased caseload on physicians, who may already suffer from burnout. 'If the goal is truly to make America healthy again, then we need to have a strong physician workforce … We should be coming up with ideas to make it more accessible for people who want to be doctors as opposed to hindering that,' Anderson said. Sophia Tully, co-president of the Minority Association of Pre-Med Students at Northwestern, said she and her peers have struggled to reconcile with a system that often feels stacked against them. The 21-year-old plans on taking an extra gap year before medical school in an effort to save money. Tully summed up the environment on campus: 'For lack of a better word, people are panicking.'
