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Contact: lppipress@luskin.ucla.edu
LPPI Data Brief Finds Federal Student Loan Changes Could Create New Barriers for Future Latino Physicians
New research highlights how new federal borrowing limits may disproportionately affect Latino medical students and deepen physician workforce shortages.
LOS ANGELES, CA (July 7, 2026) — New federal limits on student borrowing could make medical school less accessible for Latinos and further weaken representation in the medical profession, according to a new brief from the UCLA Latino Policy and Politics Institute (LPPI). Drawing on data from the 2019–2020 National Postsecondary Student Aid Study, the analysis finds that new federal borrowing limits could make medical school less accessible for Latino students, widening a gap in a profession where Latinos comprise 19% of the U.S. population but only 7% of physicians.
Under the new policy that took effect on July 1, 2026, students in professional degree programs, including medical school, now face a $50,000 annual federal loan cap and a $200,000 total borrowing limit. The law also eliminates the Graduate PLUS loans, which have long helped students cover costs not met through other financial aid.
Key findings during the 2019 to 2020 academic year include:
- More than one-third (35%) of Latino medical students borrowed over $50,000 annually in federal loans, exceeding the new federal borrowing cap.
- Nearly 76% of Latino medical students relied on federal loans to finance their education.
- Latino students are more likely than non-Latino students to report funding their medical school education with credit cards (59% vs. 50%), and were almost three times as likely to rely on family financial support.
- Latino students were more likely to receive grants than non-Latino students and received larger amounts of grant support, highlighting the importance of non-loan aid in supporting medical school affordability.
The analysis notes that as of 2026, the median four-year cost of attendance at public and private medical schools now exceeds the new federal lifetime borrowing limit. As a result, students may increasingly turn to private loans, which often carry fewer borrower protections and are generally ineligible for federal loan forgiveness programs.
“Federal student aid helps determine who has a real chance to become a doctor,” said Arturo Vargas Bustamante, faculty director of research at LPPI and co-author of the brief. “When that support does not cover the cost of medical school, talented students can be pushed out, and the physician workforce becomes less representative of the communities it is meant to serve.”
For additional findings on how these changes may affect aspiring attorneys, read our companion brief on the new federal loan limits and law students.
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About UCLA Latino Policy and Politics Institute:
The UCLA Latino Policy and Politics Institute is a non-partisan research institute that seeks to inform, engage, and empower Latinos through innovative research and policy analysis. LPPI aims to promote equitable and inclusive policies that address the needs of the Latino community and advance social justice. latino.ucla.edu.
