Medical Education Financing Reform: Implications for the Future Healthcare Workforce

Financing medical education is about to become significantly more constrained, with potential ripple effects across the U.S. healthcare workforce.

Under the 2025 Federal Education and Fiscal Responsibility Act, Congress has enacted reforms that will reshape graduate student lending. Beginning July 1, 2026, the Grad PLUS loan program will be eliminated for new borrowers. In its place, federal loans will be capped: students in professional programs such as medicine will be able to borrow up to $50,000 per year, with a $200,000 total cap.

Implications for the Physician Pipeline

The potential consequences are considerable. Today, the average medical student graduates with more than $210,000 in debt, while the U.S. faces a projected shortage of over 187,000 physicians by 2037. Borrowing constraints may make access to medical education more difficult, ultimately exacerbating this shortage.

A Shift in Workforce Dynamics

As the cost and duration of medical training rise relative to financing options, these changes are likely to accelerate the ongoing shift toward advanced practice provider (APP)-forward, physician-led care models. This evolution is already being driven by payer pressures, workforce shortages, and patient access goals.

Strategic Considerations for Care Delivery Platforms

For care delivery organizations, this environment presents both challenges and opportunities. Workforce models, training pathways, and compensation structures may need to adapt to a landscape where APPs play an expanding clinical role alongside physicians.