A new UCLA Latino Policy and Politics Institute analysis warns that federal borrowing caps and the elimination of Graduate PLUS Loans may make medical school less accessible for Latino students and reduce diversity in the physician workforce.
New federal student loan limits could make medical school less accessible for Latino students and further reduce representation in the U.S. physician workforce, according to a new analysis from the UCLA Latino Policy and Politics Institute (LPPI).
The brief, which examines data from the 2019–2020 National Postsecondary Student Aid Study, finds that new federal borrowing restrictions may create additional financial barriers for Latino medical students. The changes come at a time when Latinos represent 19% of the U.S. population but make up only 7% of physicians.
New federal loan caps could create financial barriers for medical students
Beginning July 1, 2026, students enrolled in professional degree programs, including medical school, face new federal borrowing limits. Under the policy, students can borrow up to $50,000 annually in federal loans, with a maximum lifetime borrowing limit of $200,000.
The policy also eliminates Graduate PLUS Loans, a federal financing option that previously allowed graduate and professional students to borrow additional funds to cover education costs not met through other financial aid.
Medical school remains one of the most expensive educational pathways, and the new limits could leave many students searching for alternative ways to pay for tuition, fees, living expenses, and other costs associated with medical training.
Latino medical students rely heavily on federal loans
The LPPI analysis highlights the significant role federal financial aid plays in helping Latino students pursue medical careers.
Key findings from the 2019–2020 academic year include:
35% of Latino medical students borrowed more than $50,000 annually in federal loans, exceeding the new federal borrowing cap.
Nearly 76% of Latino medical students relied on federal loans to finance their medical education.
Latino students were more likely than non-Latino students to report using credit cards to help pay for medical school costs (59% compared with 50%).
Latino students were nearly three times as likely to rely on family financial support compared with their non-Latino peers.
Latino medical students were more likely to receive grants than non-Latino students and received larger grant amounts, underscoring the importance of non-loan financial aid programs.
Medical school costs exceed new federal borrowing limits
The analysis notes that by 2026, the median four-year cost of attending a public or private medical school exceeds the new $200,000 federal lifetime borrowing limit.
As federal loan access becomes more limited, students may increasingly turn to private loans to cover remaining costs. These loans often provide fewer borrower protections and are generally not eligible for federal forgiveness programs.
Loan access affects diversity in the physician workforce
Researchers warn that limiting access to affordable medical education could affect who is able to enter the medical profession.
“Federal student aid helps determine who has a real chance to become a doctor,” said Arturo Vargas Bustamante, faculty director of research at LPPI and co-author of the brief. “When that support does not cover the cost of medical school, talented students can be pushed out, and the physician workforce becomes less representative of the communities it is meant to serve.”
The findings suggest that federal student loan policies may play an important role in shaping the future diversity of the U.S. healthcare workforce, particularly for Latino students pursuing careers in medicine.
