Background: 

On April 29, the House Education and Workforce Committee advanced its portion of the House FY 2025 reconciliation package that includes significant changes to the federal student loan programs amounting to over $330 billion in cuts in these programs. The bill (called the Student Success and Taxpayer Savings Plan) would cap borrowing on federal student loans of $50,000 for undergraduate programs, $100,000 for graduate student programs and $150,000 for professional programs. The claim is that these caps would force universities to lower tuition, making higher education more affordable for all students. However, the average medical school graduate is graduating with approximately $235,000 in medical school debt alone, or $265,000 of combined medical and premedical education debt. Medical schools, especially public institutions, will not be able to make these drastic reductions to their tuition structures by July 1, 2026, when the loan caps go into effect. As a result, far fewer students will be able to afford medical school and education generally, exacerbating the existing physician shortages across the country, especially in rural areas. 

The bill would also change the Public Service Loan Forgiveness (PSLF) program by excluding medical and dental residency from counting towards Public Service Loan Forgiveness (PSLF), making it more challenging for future medical graduates to repay loans issued after July 1, 2025.

These proposed changes would make medical schools less accessible for those who want to pursue a career in medicine as medical education remains the most expensive post-secondary education in the US. Over 71% of medical student graduates carry an average debt of over $200,000 and for three to five years after graduation during residency and fellowships, their income is capped. 

The United States faces a mounting health workforce crisis, with a shortage of more than 87,000 primary care physicians expected by 2037. ACP is concerned that the proposed changes to the student loan system would result in far fewer students being able to afford medical school, exacerbating existing workforce issues. 

Action Requested: Please urge your members of congress to protect and preserve the student loan and forgiveness program. A sample letter has been provided below for you to personalize and submit electronically.