Charlotte’s first medical school opens amid federal loan cuts that may limit access

CHARLOTTE — Charlotte’s first medical school begins classes this week amid concerns over new federal student loan regulations that could make higher education less affordable for future students.

The budget reconciliation bill signed by President Donald Trump on July 4 eliminates Grad PLUS loans starting July 1, 2026, which have allowed students to borrow up to 100% of their cost of attendance since 2006.

Instead, the bill imposes borrowing limits for professional graduate degrees, such as law and medicine, of $50,000 annually and $200,000 lifetime, while nonprofessional graduate degrees face lower caps, according to the Charlotte Observer.

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“I think this could really limit who can afford to go to graduate school,” said Paige Swanstein, co-founder of the Student Basic Needs Coalition.

Peter Chmiel, a medical student at Duke University, expressed concerns about the $200,000 gap between federal loan limits and the actual cost of medical school, especially for those entering lower-paying specialties.

Students can still take out private loans to cover educational costs, but these often come with higher interest rates and less favorable repayment options. Paige Swanstein warned that private loans can be predatory and may require co-signers, posing challenges for students from low-income families.

Federal loans offer loan forgiveness options for those entering public service, which remain unchanged under the new bill, unlike private loans that lack such pathways.

Wake Forest University School of Medicine’s new campus in Charlotte has an estimated annual cost of attendance of $110,448, highlighting the financial challenges posed by the new loan limits.

The Association of American Medical Colleges cautioned that the changes could exacerbate the nation’s doctor shortage, as medical students might opt for higher-paying specialties over primary care, where shortages are already significant.

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