Maryland students are searching for options as the One Big Lovely Bill Act changes federal student loan programs by ending Grad PLUS loans and capping other graduate loans.
From the moment Jefferson Vasquez-Reyes stepped onto University of Maryland’s campus in College Park, he already knew what his next step would be. “when I was growing up,I had to serve as my parents’ health care liaison,and that involved me having to interpret for them,take them regularly to their medical appointments,” said vasquez-Reyes,a Maryland senior and Student Council president for the University System of Maryland. “It wasn’t until in high school when I had an encounter with a Latino physician that I realized we had an identity in that space, and that if I put my mind to it, what I was able to accomplish in education such as going to medical school.”
he thought he had the finances figured out, too. Vasquez-reyes had planned to use Grad PLUS Loans and direct unsubsidized loans to finance his education.
the One Big Beautiful Bill Act signed in July will phase out Grad PLUS Loans next year, meaning new borrowers will not be able to get loans from the program.
The new law also caps direct unsubsidized loans at $50,000 a year for professional programs, like medicine and law, and $20,500 for other graduate programs. “I felt very worried just because I promptly thought the average cost to go to medical school is way higher than that cap,” Vasquez-Reyes told WBAL-TV 11 News. “It definitely was very concerning and kind of put a delay in my path. I already had anticipated to take at least a year off to prepare my application, but with that, I’m not even sure if a year is enough.”
Vasquez-Reyes knows he’s not alone in his concern. “I’ve spoken to students who are interested in medicine,” Vasquez-Reyes told WBAL-TV 11 News.”I’ve also spoken to students who are interested in law and they are in the same boat; they don’t really know what this means. They are also waiting for guidance from institutions on how they can fund their education. I’ve heard some people even decide to wait and hear what the verdict is, and that if it’s not on their side financially, they might have to abandon what they really wanted to pursue.”
While addressing the Maryland General Assembly’s House Appropriations Committee in September,University System of Maryland chancellor Jay Perman said some 6,000 students borrowed from the Grad PLUS Loan Program last year. He said more than half are professional students at University of Maryland, Baltimore.
“Among the programs impacted is medicine, where 40% of our students now borrow through Grad PLUS,” Perman said in September. “Physicians are critically needed in Maryland especially in the rural regions and we fear we will lose some aspiring providers.”
The U.S. is already facing a physician shortage. According to a report from the Association of American Medical Colleges, projections indicate ther will be a shortfall of up to 86,000 physicians by 2036.
Dr. Eric wargotz, president of MedChi and professor emeritus at George Washington University School of Medicine Health Sciences, said he believes the physician shortage is due to population growth, but that the changes to federal loans certainly will not help medical school students. “I do believe there will be severe impact.I do believe there will be those who still want to apply to medical school and can afford it. I’m not sure it will continue to fill all the spots in a class,” Wargotz told WBAL-TV 11 News.
Despite the challenges, Vasquez-Reyes remains determined. “I’m very committed to accomplishing my dream and pursuing medicine,” Vasquez-Reyes told WBAL-TV 11 News.
The elimination of the Grad PLUS Loan Program and the new graduate loan limits will take effect on July 1, 2026.