DC Slammed the Door on Future MDs.
On July 4, 2025, a new bill eliminated a critical federal loan that allowed the majority of medical students to pursue their education.
But New York is fighting back.
We're proposing a state-level loan program to ensure medical school remains accessible for New York students. This program would mirror the former federal Grad PLUS loans, providing the funding students need to complete their medical education without being priced out by private lenders.
New York can lead the way in protecting future physicians and ensuring healthcare access for all.
The "One Big Beautiful Bill": A Closed Door on the American Dream
Current Situation
The "One Big Beautiful Bill" passed on July 4, 2025. Starting with the 2026-2027 academic year, new medical students will no longer have access to Grad PLUS loans, and federal student loans are capped at $150,000. The consequences outlined below are now reality for future medical students.
Key Facts: The Stark Reality
- 70-75% of medical students rely on federal loans to afford the cost of attendance—Association of American Medical Colleges (AAMC)
- The US will face a shortage of up to 86,000 physicians by 2036—and this bill will only intensify the crisis (AAMC)
- The Congressional Budget Office estimates the bill will leave nearly 11 million people uninsured, leading to a rise in preventable illness as patients delay or skip essential medical care (AAMC)
The "One Big Beautiful Bill" has shut down the Grad PLUS federal loan program for all new medical students starting in the 2026-2027 academic year. This caps the loan at $150,000, which is half of what most medical students need to afford the cost of attendance. Medical school costs a crippling average of $80,000 to $95,000 a year, and students accumulate $200,000 to $300,000 in student debt before residency. Without the help of federal loans, students now have no choice but to rely on private loans with outrageous rates and no safety nets.
Why Medical School Matters
Now that this dangerous bill has passed, the consequences are far-reaching and dire:
- The bill has stripped rural and underserved communities of the very doctors they desperately need.
- Diversity and equal opportunities in medicine will be severely impacted as federal loans essential for the vast majority of students have been eliminated.
- The cost of healthcare will drastically increase as the supply of physicians shrinks for a growing patient population.
New York's Solution: State-Level Medical Education Loan Program
With the federal government abandoning its commitment to medical education, New York can lead by creating a state loan program that mimics the former Grad PLUS program
Why New York Must Act Now
New York is home to some of the nation's premier medical schools and teaching hospitals. Starting in 2026-2027, we risk losing talented students who cannot afford medical education, particularly those from underserved communities who are most likely to return to serve those areas.
The Proposed NY Medical Education Loan Program would provide state-funded loans up to the full cost of attendance, with reasonable interest rates, income-driven repayment options, and loan forgiveness for physicians who serve in New York's underserved communities.
$150,000+ Per Year
Covers full cost of attendance with reasonable interest rates
Addresses Shortages
Helps train physicians for rural and underserved communities in New York
In The News
Local media coverage highlights the real impact on Western New York students.
UB Students Fight Back Against Federal Loan Elimination
Over 1,400 University at Buffalo students are affected by the elimination of Grad PLUS loans. Local advocates, including UB student Srivaishnavi Ijjapureddy, are leading the charge to make medical education accessible through state-level solutions.