Federal Bill Passed • July 4, 2025

New York Medical Education Loan Program

A state-level solution to protect medical school access after the federal "One Big Beautiful Bill" eliminated Grad PLUS loans

What Just Happened

On July 4, 2025, the "One Big Beautiful Bill" passed, fundamentally changing medical education financing

The Bill's Impact on Medical Students

Grad PLUS Eliminated: The federal Grad PLUS loan program will be shut down for all new medical students starting in the 2026-2027 academic year

Loans Capped at $150,000: Half of what most medical students need, while medical school costs average $80,000-$95,000 per year

Students Face $200,000-$300,000 in Debt: Before even starting residency, with no access to affordable federal loans

Only Option: Private Loans: With outrageous interest rates and no safety nets or income-driven repayment plans

Repayment Plans Cut: Making it extremely difficult for physicians to get loan forgiveness, especially those serving in low-income and rural areas

The Stark Reality

70-75% of medical students

rely on federal loans to afford medical school (AAMC)

Up to 86,000 physician shortage

projected by 2036—this bill intensifies the crisis (AAMC)

11 million people uninsured

estimated by Congressional Budget Office

Medicine only for the wealthy

Shutting out lower and middle-class students

Why New York Must Act Now

With the federal government abandoning its commitment to medical education access, New York has both an opportunity and a responsibility to lead by creating a state-level loan program that ensures qualified students can still pursue medical careers regardless of family wealth.

Working with Governor Hochul's Office

We are actively collaborating with Governor Kathy Hochul's office, working alongside Sibu Nair, Deputy Director for Asian American Affairs, to advance this critical legislation. Together, we are building bipartisan support to ensure New York students maintain access to medical education.

New York's Medical Education at Risk

New York is home to some of the nation's premier medical schools and teaching hospitals. Starting in 2026-2027, we risk losing talented students who cannot afford medical education, particularly those from underserved communities who are most likely to return to serve those areas. Without state action, New York's healthcare system and medical leadership will suffer irreparable harm.

The Current Situation

The "One Big Beautiful Bill" passed on July 4, 2025, fundamentally changing medical education financing

The Proposed NY Medical Education Loan Program

A state-funded loan program modeled after the former federal Grad PLUS program, designed specifically for New York medical students

Covers Full Cost

Loans up to the full cost of attendance, minus other financial aid received, ensuring no qualified student is turned away due to finances

Reasonable Terms

Fixed interest rates comparable to federal student loans, with income-driven repayment options and deferment during residency

NY Residency Priority

Available to New York residents attending medical schools in New York, with incentives for practicing in underserved areas of the state

Loan Forgiveness

Partial or full loan forgiveness for physicians who commit to serving in New York's medically underserved communities

Why This Matters for New York

Protects Medical Education Access

Ensures that talented New York students can pursue medical careers regardless of family wealth, maintaining the diversity and quality of our physician workforce

Addresses Physician Shortages

New York faces critical physician shortages, especially in rural and underserved urban areas. This program helps train physicians who are more likely to serve these communities

Economic Investment

Every dollar invested in medical education returns to the state through improved healthcare outcomes, reduced healthcare costs, and physicians contributing to the local economy

Sets a National Example

New York can lead the nation by demonstrating that states can protect access to medical education even when federal support falters

Take Action for New York

Contact your New York State legislators to support the creation of the NY Medical Education Loan Program

Find Your NY State Legislators

New York State Senate

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New York State Assembly

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Sample Message to Your Legislators:

Subject: Support for NY Medical Education Loan Program

Dear [Legislator Name],

I am writing to urge you to support the creation of a New York State Medical Education Loan Program. With federal Grad PLUS loans potentially being eliminated, New York has an opportunity to lead by ensuring our medical students can afford their education.

This program would help address physician shortages in underserved areas, maintain diversity in our medical workforce, and demonstrate New York's commitment to accessible healthcare education. I ask that you champion this legislation and work to secure funding for this critical investment in our state's healthcare future.

Thank you for your consideration.

Sincerely,
[Your Name]
[Your Address]