U.S. student loan cap risks worsening doctor shortage, critics warn
NEW YORK, UNITED STATES — A Republican-led proposal to cap federal student loans for medical schools at $150,000 is drawing fierce opposition from doctors’ groups and educators, who warn it could worsen the United States’ physician shortage, as reported by The Guardian.
Critics argue the move would deter low-income students from pursuing medicine, particularly in underserved fields like primary care and rural health.
Proposed loan cap sparks fears of worsening physician shortage
By 2034, the Association of American Medical Colleges (AAMC) expects to see a physician shortage amounting to up to 124,000, mainly affecting rural and low-income areas.
If loans are not available, some think it would tempt future doctors to pursue well-paid specialties or leave medical practice.
“When there is a stated goal from these policymakers to increase the physician workforce, to increase the number of primary care physicians and expand access in rural and underserved areas – these policies just don’t align with those priorities,” said Dave Bergman, spokesperson of the American Association of Colleges of Osteopathic Medicine (AACOM), noting that it was a short-sighted decision in workforce.
Private loans no substitute, economist warn
Lesley Turner, a University of Chicago economist and associate professor at the University of Chicago Harris School of Public Policy, notes that the proposed limit is half the pre-2006 inflation-adjusted cap of nearly $300,000.
“This isn’t going back to where we were in 2006. This is going back to that and then cutting it in half,” Turner said.
“It’s not clear that the private student loan market would fill in that gap,” she added, pointing to stricter terms and higher interest rates that could deter borrowers.
While Sara Robertson of the Center for American Progress insists private loans will be widely available. “For borrowers who do need to borrow more than the bill’s loan limits, private student loans – particularly for medical students – will be widely available and often have interest rates,” Robertson said.
Data shows medical students rarely default—just 1% of osteopathic graduates miss payments, per AACOM, versus 8.15% of all student borrowers as per Education Data Initiative.
Critics warn that shifting debt to private lenders could make medicine programs unaffordable for low-income students, worsening disparities in healthcare access.
“At a time when our country urgently needs more doctors – especially in underserved areas – this bill would create new financial and logistical barriers that disproportionately harm low-income students,” said Dr. Shannon Udovic-Constant, President of the California Medical Association, emphasizing that this bill could pose negative implications to the future of the healthcare workforce.
