If you dream of becoming a doctor, you likely know that medical school can be expensive. According to the Association of American Medical Colleges (AAMC), the median cost of attending a public medical school was $286,454 in 2024, and the median cost of attending a private medical school was $390,848. Few people can cover that cost, which is why a significant percentage of students — 71% of students — use student loans.
However, President Trump’s signature One Big Beautiful Bill (OBBB) made significant changes to the federal student loan system. Going forward, it may be more difficult to pay for medical school.
Here’s what you need to know.
How the One Big Beautiful Bill Affects Medical School Students
The OBBB made major changes to several federal financial aid programs, including Pell Grants and federal student loans. For students planning to attend medical school, there are two major changes that may affect how you pay for your education:
Parents Will Be Limited In How Much They Can Borrow for Pre-Med
Under the current student loan system, parents can use Parent PLUS Loans to help their children pay for their undergraduate degrees. Unlike other federal loans, these loans don’t have caps on how much parents can borrow, so parents could take out a loan to cover 100% of their child’s pre-med education.
The OBBB sets new restrictions on parent borrowers. For loans disbursed on or after July 1, 2026, the maximum loan amount will be $20,000 per year per student, with an aggregate limit of $65,000.
Federal Loan Options Will Be Limited
Medical school students can currently use two types of federal loans to pay for their education: Direct Unsubsidized Loans and Grad PLUS Loans. Direct Unsubsidized Loans have lower rates, but strict annual and aggregate borrowing limits. Grad PLUS Loans typically have higher rates, but there’s no limit to how much a student can borrow; they can use PLUS Loans to cover the total cost of attendance.
For loans disbursed on or after July 1, 2026, professional students (such as medical school students) will be limited to $50,000 per year, with an aggregate limit of $200,000 — and that aggregate limit is inclusive of all federal student loans used for undergraduate education.
As mentioned earlier, medical school can cost well over $250,000, so federal loans will no longer be available for the full cost. According to the AAMC, this could harm the healthcare industry:
“[…] eliminating the Grad PLUS loan program will affect many prospective medical and other health professions students and worsen the nation’s persistent doctor shortage,” said AAMC President and CEO David J. Skorton, MD, and AAMC Chief Public Policy Officer Danielle Turnipseed, JD, MHSA, MPP, in a statement.
IMPORTANT: If you’re already enrolled in medical school and have taken out PLUS Loans, there is some good news: you can qualify for an exception to the new rule and use PLUS Loans for up to three years to pay for school.
How to Pay for Medical School
If you’ll need help paying for medical school on or after July 1, 2026, follow these steps:
- Fill out the Free Application for Federal Student Aid (FAFSA): Even with the federal loan changes, completing the FAFSA is still essential; states, schools, and some organizations use the FAFSA to determine your eligibility for financial aid like grants or state or institutional loans, so you may qualify for other forms of financial assistance.
- Apply for scholarships and grants: Private companies non-profit organizations offer scholarships and grants for medical school students. The AAMC has a database of scholarship opportunities.
- Research state incentive programs: Some states offer incentives to encourage medical school students to live and work in the state once they become doctors; they may pay for a portion of your tuition (or repay some of your student loans) if you commit to working in high-need areas. Visit your state education agency to find out if a program is available in your area.
- Maximize federal loans: If you need to take out loans, federal loans are still a good starting point. You can take out Direct Unsubsidized Loans to cover some of your remaining education costs.
- Apply for private student loans: If you still need help covering the gap after using grants, scholarships, and federal loans, private student loans can help you finish your medical school program. With private loans, you can usually borrow up to 100% of the total cost of attendance.
With ELFI, you can check your loan eligibility and view potential loan rates and terms with our “Check My Rate” tool. It uses a soft credit check, so there’s no impact to your credit score. It makes it easy to compare loan options and explore financing options for medical school.
