Recent federal student loan policy changes have fundamentally altered the financial landscape for aspiring physicians and dentists. The "One Big Beautiful Bill" (H.R. 1) enacted in July 2025 introduced significant borrowing caps to educational loans that disproportionately impact students pursuing medical and dental education—particularly those who rely heavily on federal financial aid to finance their education.
These changes come at a time when California and the nation face worsening health care workforce shortages, especially in rural and medically underserved communities. This new federal loan structure threatens to undermine progress in diversifying the health professions and could worsen both access to care and quality of care. Health care professionals from medically underserved communities are more likely to serve patients in those communities, playing a critical role in improving access to care. Research demonstrates that workforce diversity improves patient outcomes, quality of care, and patient trust.
Under the previous federal loan system, graduate and professional students could access unlimited Graduate PLUS loans to cover the full cost of attendance after exhausting Direct Unsubsidized loans ($20,500 annually). This system ensured that qualified students could finance their medical or dental education regardless of family financial resources.