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American Focus > Blog > Health and Wellness > The new tax law caps federal Grad PLUS loans for future doctors
Health and Wellness

The new tax law caps federal Grad PLUS loans for future doctors

Last updated: July 11, 2025 4:50 am
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The new tax law caps federal Grad PLUS loans for future doctors
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As a young child, I was drawn to the world of obstetrics and gynecology after being mesmerized by shows like “Bringing Home Baby” and “Deliver Me” on the Discovery Health Channel. The beauty, peace, and support surrounding childbirth captivated me, shaping my dream to become an OB-GYN. However, it was witnessing my mother’s challenging journey through pregnancy with my younger siblings that solidified my purpose.

Growing up as a first-generation college student in rural Alabama, my path to medical school was far from easy. Balancing multiple jobs with the demanding coursework in subjects like organic chemistry and physics was a constant struggle. I took out loans, pursued a master’s degree, and completed a post-baccalaureate program to prove my readiness for a career in medicine. Now, as I near graduation from medical school, with nearly $400,000 in debt looming over me, I see the ladder I climbed being torn down by recent legislation.

The recently passed One Big Beautiful Bill, touted as a victory for fiscal responsibility, contains provisions that will have devastating consequences for medical students, patients, and healthcare providers. The bill eliminates the Grad PLUS loan program, caps annual federal direct loans at $50,000, and imposes a lifetime maximum of $200,000 for medical students. These amounts fall significantly short of the actual cost of attending medical school, leaving many students with staggering debt burdens.

Most medical students graduate with over $200,000 in debt, which doesn’t include prior debts from undergraduate or other graduate programs. The new loan cap could force students to turn to high-interest private loans to complete their education, lacking essential protections like income-driven repayment or public-service forgiveness. Additionally, recent actions, such as the cancellation of a scholarship for high-performing Black medical students, further highlight the systemic barriers faced by underrepresented groups in medicine.

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The implications of this bill extend beyond individual debt burdens. In states like Alabama, where maternal mortality rates are among the highest in the nation, the shortage of physicians, particularly in rural areas, poses a significant public health challenge. Rural hospitals, already struggling to stay afloat, depend on a steady influx of healthcare providers to serve their communities. The bill’s proposed Medicaid reductions further exacerbate these challenges, jeopardizing the viability of these essential healthcare institutions.

The impact of this legislation goes beyond financial concerns. It threatens to exclude diverse voices and perspectives from the healthcare field, resulting in a loss of culturally competent care and essential support for underserved communities. By passing this bill, lawmakers are not balancing the budget but shifting the burden onto those who can least afford it – the sick, the hungry, and the next generation of healthcare providers.

As I approach the culmination of my medical education, I refuse to remain silent in the face of these detrimental policies. The path that led me to this point should not be closed off to future generations of aspiring healthcare professionals. The consequences of this bill will be felt not just in graduation rates but in the quality of care provided in emergency rooms, labor and delivery wards, and beyond.

I am committed to speaking out against policies that threaten the future of healthcare and the diversity of voices within the field. The next generation of healthcare providers deserves the opportunity to pursue their dreams and make a difference in the lives of those they serve.

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TAGGED:CapsDoctorsFederalFutureGradlawLoanstax
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