Senate Passes Sweeping Changes to Student Loans—Here’s What It Means for Future Veterinarians

Jul 1

In a major shift for higher education financing, the U.S. Senate has passed a reconciliation bill that could reshape the student loan landscape—posing serious implications for current and future veterinary professionals.

The bill includes significant revisions to repayment plans, borrowing limits for graduate and professional students, and deferment options. If the bill passes the House in its current form, it would represent one of the most dramatic overhauls of federal student aid in decades.

What’s Changing—and Why It Matters for Vet Med

Veterinary students—already graduating with average debt burdens between $150,000 and $300,000—would be directly affected by multiple provisions in the legislation:

Loan Repayment Plans Overhauled
The number of federal repayment options would shrink to just two: a new “Repayment Assistance Plan” and a standard repayment plan, replacing popular programs like SAVE and PAYE. The new assistance plan would stretch repayment to 30 years before loan forgiveness is possible, up from the current 20-25 years, with higher monthly payments anticipated.
Graduate PLUS Loans Eliminated
Currently, veterinary students rely heavily on the Graduate PLUS program to cover the full cost of attendance beyond the federal Stafford loan cap. The new bill would eliminate this option and instead cap lifetime federal loans at $100,000 for graduate students, with a higher cap of $200,000 for medical and law student.
This could force veterinary students to turn to private loans with higher interest rates and fewer borrower protections.
Parent PLUS Loans Capped and Restricted
Parent PLUS loans would be limited to $65,000 and made ineligible for income-driven repayment—cutting off another option often used by families supporting veterinary students.
Deferment Rules Tightened
Borrowers would lose the ability to pause payments due to unemployment or economic hardship—an option many veterinary graduates have used during internships, residencies, or job transitions. The bill would allow defaulted loans to be rehabilitated twice (up from once), but that’s cold comfort for those trying to avoid default in the first place.
Pell Grant Access Adjusted
Eligibility would exclude students receiving full-ride scholarships while expanding access to those in workforce training programs, though these changes are unlikely to directly affect veterinary students.

Advocacy Groups Sound the Alarm

Leaders in higher education policy are warning that these changes could make graduate and professional education less accessible—particularly for fields like veterinary medicine where tuition costs are high and entry-level salaries often don’t keep pace with debt loads.

Veterinary students, who often pursue careers in underserved areas or in research and public health, may be particularly vulnerable under the new framework. The loss of deferment and more rigid repayment structures could limit career flexibility at a time when the profession is already facing burnout and workforce shortages.

Under the reconciliation bill passed by the Senate, veterinary students would face a lifetime cap of $200,000 on federal student loans, significantly limiting their access to financial aid. This new cap replaces the current system, where students can borrow up to $20,500 annually in unsubsidized Stafford Loans and cover the remaining cost of attendance through Graduate PLUS Loans, which have no formal cap. With the average cost of veterinary education ranging from $250,000 to over $450,000, this change would leave a substantial funding gap that students would need to fill with private loans, which typically carry higher interest rates and fewer borrower protections. If enacted, this policy could make veterinary education significantly less accessible and financially riskier for aspiring veterinarians.

What Happens Next?

The bill now returns to the House of Representatives, where it may face opposition or amendments. If passed unchanged, veterinary schools, financial aid advisors, and students will need to quickly adapt to the new rules—which would go into effect between July 2026 and July 2028.

In the meantime, veterinary associations and student groups are urging Congress to reconsider provisions that could jeopardize the financial security of future veterinary professionals.