How the 2025 Tax Law Quietly Reshaped Medical Student Debt
Why new federal loan caps matter more than RAP.
NASFAA published my new analysis today on the overlooked impact of the 2025 tax law on young doctors. While most attention has gone to the new Repayment Assistance Plan (RAP), the bigger change is the federal borrowing cap that eliminates Graduate PLUS loans for medical students.
This shift forces many future physicians to turn to private loans—often at double-digit interest and without income-based protection. A typical new doctor with about $450,000 in education costs now sees roughly 40% of that debt move into private credit, where balances can grow sharply during residency.
The result: more financial pressure in the years when physicians earn the least, and more risk shifted from the federal system onto new practitioners.
Full analysis here:
https://www.nasfaa.org/news-item/37663/Impact_of_2025_Tax_Law_Changes_on_Young_Doctors
Other articles on student debt published at this blog here: