The U.S. Department of Education’s new federal loan borrowing limits went into effect in July. The Trump administration imposed the restrictions to curb the growing issue of outstanding student loan debt, which the Education Data Initiative says has reached more than $1.7 trillion.
Federal loans for professional degree programs, such as a lawyer or doctor, are capped at $50,000 annually, with an aggregate limit of $200,000.
However, the borrowing limits could have an unintended effect. Kansas City University president and CEO Dr. Mark Hahn said the restrictions will worsen the physician shortage and prevent qualified people from attending medical school.
“Our nation already faces a serious physician shortage problem, yet new federal student loan limits are making medical school difficult to finance, particularly for students who do not have family wealth or access to private credit,” Hahn said.
Hahn said experts predict a shortage of 140,000 physicians over the next decade.
Physicians benefit overall public health, adding wealth to communities. According to the American Medical Association, one physician results in a $2.1 million in economic output in Missouri.
“Creating physicians (takes) care of the health of the community, but also impacts the wealth of a community,” Hahn said.
- Marc Hahn, D.O., president and CEO, Kansas City University
