AACOM presentation regarding financial aid and HR1 Big Beautiful Bill

[Mr.Smile12]

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AACOM will be hosting a financial aid webinar for prospective applicants on Thursday, November 6 at 7:00pm ET to address frequently asked questions about scholarships, loans, and repayment options as well as the implications of the Big Beautiful Bill.

• How will you pay for medical school?

• What is the Big Beautiful Bill and what does it mean for future medical students?

• Is there anything you can do to reduce the cost?

If these questions are top of mind for you, please join AACOM on Thursday, November 6 at 7:00pm ET for an informative webinar on how to finance your medical education. Presenters will discuss scholarship, loan, and repayment options available to support your journey to becoming a physician.

REGISTER HERE

 

[VoodooPreMed]

New to this site but searching for a forum where I can get the answer to this question: Is there any chance that some institutions will make changes to allow students starting in 2026 to be grandfathered into the prior loan rules? It seems like anyone starting from July 1st, 2026 will be subject to the new bill's rules, but I think I saw a mention of a school allowing an early start due to this new bill. I can't find it, and I'm just curious to see if anything like this is being considered for students matriculating in 2026.

 

[EEqualsRx2]

I believe ACOM is doing that. I'm sure a few more will follow suit, but only time will tell.

 

[Mr.Smile12]

I'm hoping this webinar can address your question for DO schools, but pending guidance from what's left of the Department of Education, we will find out after this month (or soon).

 

[AJ25]

I popped into the presentation just to see and that was real slick of AACOM to bring in Sallie Mae and give a garbage presentation on private loans that did not discuss anything about PSLF. More specifically that private loans do not qualify for PSLF.

And this is the problem we have with these companies trying to dupe students into financial decisions that can affect them for the rest of their lives.

Unbelievable.

 

[VoodooPreMed]

I popped into the presentation just to see and that was real slick of AACOM to bring in Sallie Mae and give a garbage presentation on private loans that did not discuss anything about PSLF. More specifically that private loans do not qualify for PSLF.

And this is the problem we have with these companies trying to dupe students into financial decisions that can affect them for the rest of their lives.

Unbelievable.

Honestly made me feel pretty terrible as far as my options for financing my education at this point. I guess we have to see what we can get out of the department of education after this shutdown is over but supposedly they're trying to gut that completely?! Information seems pretty limited at this point. I think the best thing, if it could be managed, is getting as many students grandfathered in as possible for this 2026 start year but who knows if they'll even do that.

 

[AJ25]

Honestly made me feel pretty terrible as far as my options for financing my education at this point. I guess we have to see what we can get out of the department of education after this shutdown is over but supposedly they're trying to gut that completely?! Information seems pretty limited at this point. I think the best thing, if it could be managed, is getting as many students grandfathered in as possible for this 2026 start year but who knows if they'll even do that.

Glad to hear you didn't fall for that garbage.

I've been having talks with my own program and they haven't said anything yet about incoming students for 2027 but it pisses me off when I see those private loan leaches sweep right in and try to take advantage of the situation.

The advice I want to give students is to just wait till more info. comes out. If the schools don't match tuition to the aggregate limits, maybe it's time to look at other careers. Those private student loans will interfere with your life going forward...even with doctor money.

 

[JunoJason]

New to this site but searching for a forum where I can get the answer to this question: Is there any chance that some institutions will make changes to allow students starting in 2026 to be grandfathered into the prior loan rules? It seems like anyone starting from July 1st, 2026 will be subject to the new bill's rules, but I think I saw a mention of a school allowing an early start due to this new bill. I can't find it, and I'm just curious to see if anything like this is being considered for students matriculating in 2026.

This is out of institutional hands, so unfortunately without funding from other sources to fill the gradPLUS gap, MS1s will need to access private loans above $50k/year. I suppose if a school were willing to help you secure a small loan before next academic year begins, this would be controversial but it's possible? If that happens for you please keep us in the know.

 

[JunoJason]

Glad to hear you didn't fall for that garbage.

I've been having talks with my own program and they haven't said anything yet about incoming students for 2027 but it pisses me off when I see those private loan leaches sweep right in and try to take advantage of the situation.

The advice I want to give students is to just wait till more info. comes out. If the schools don't match tuition to the aggregate limits, maybe it's time to look at other careers. Those private student loans will interfere with your life going forward...even with doctor money.

Best thing to do right now is make sure you've got a solid credit profile and/or a strong co-signer. There are few lenders that will offer loans, so that gives you some leverage. At the end of the day, doesn't matter who ends up lending to you... you can control how competitive rates and terms are by managing your credit now.

 

[JunoJason]

I popped into the presentation just to see and that was real slick of AACOM to bring in Sallie Mae and give a garbage presentation on private loans that did not discuss anything about PSLF. More specifically that private loans do not qualify for PSLF.

And this is the problem we have with these companies trying to dupe students into financial decisions that can affect them for the rest of their lives.

Unbelievable.

PSLF has been under pressure lately anyway... but if you have up to $257k in federal loans... and it's still around in 2030, you can still save $100k or more through it. Federal, state and local loan repayment programs are available too, and they will pay private loans. Check out the AAMC's list, or NHSC.

 

[AJ25]

PSLF has been under pressure lately anyway... but if you have up to $257k in federal loans... and it's still around in 2030, you can still save $100k or more through it. Federal, state and local loan repayment programs are available too, and they will pay private loans. Check out the AAMC's list, or NHSC.

Are you a vendor for loans lol? Why should anyone take your advice?

 

[JunoJason]

Are you a vendor for loans lol? Why should anyone take your advice?

 

[JunoJason]

Juno isn't a lender; we're a grassroots org that uses collective negotiation get to better rates and terms for our members. DO is a specific area of focus next year. Please check us out (joinjuno) and see our reviews and mission before coming to a conclusion. You'll soon see I'm only providing advice from an advocacy perspective and getting in front of any misinformation I see.

 

[AJ25]

Juno isn't a lender; we're a grassroots org that uses collective negotiation get to better rates and terms for our members. DO is a specific area of focus next year. Please check us out (joinjuno) and see our reviews and mission before coming to a conclusion. You'll soon see I'm only providing advice from an advocacy perspective and getting in front of any misinformation I see.

List the pros and cons of private student loans.

 

[JunoJason]

List the pros and cons of private student loans.

Sorry just seeing this!
Pros:

• Access to capital needed to fund cost of attendance
• No origination fees (GradPLUS was 4%)
• Rates can be lower than federal loans (80% of Juno's members this year got rates lower than 8%)
• For med students, we're confident we'll see lenders offer residency/fellowship deferment
• Qualify for tax-advantaged loan repayment from NHSC and state programs (for work in underserved area), and employer section 127 contributions (when employers pay down your loans monthly, which is an increasingly popular benefit)
• Can refinance at lower rates anytime with no penalties

Cons:

• No access to federal benefits like PSLF, income-driven loan repayment plans, longer hardship deferments
• Credit based underwriting - have good credit, or line up a co-signer
• Rates vary by profile; nothing guaranteed until underwriting complete
• Interest will accrue during training (for federal loans, using RAP will eliminate negative amortization which will help reduce overall cost)

This is a good exercise, I welcome more input!

 

[AJ25]

Sorry just seeing this!
Pros:

• Access to capital needed to fund cost of attendance
• No origination fees (GradPLUS was 4%)
• Rates can be lower than federal loans (80% of Juno's members this year got rates lower than 8%)
• For med students, we're confident we'll see lenders offer residency/fellowship deferment
• Qualify for tax-advantaged loan repayment from NHSC and state programs (for work in underserved area), and employer section 127 contributions (when employers pay down your loans monthly, which is an increasingly popular benefit)
• Can refinance at lower rates anytime with no penalties

Cons:

• No access to federal benefits like PSLF, income-driven loan repayment plans, longer hardship deferments
• Credit based underwriting - have good credit, or line up a co-signer
• Rates vary by profile; nothing guaranteed until underwriting complete
• Interest will accrue during training (for federal loans, using RAP will eliminate negative amortization which will help reduce overall cost)

This is a good exercise, I welcome more input!

Unfortunately, this right here is a killer when you work out the math on balances that are several hundreds of thousands of dollars.

Also, you didn't mention that you cannot discharge private student loans in a bankruptcy. In other words, depending on how high your balance is, private student loans could be a literal "financial" death sentence.

When you are holding onto significant student loan debt...especially debt with little to no consumer protections, you are essentially changing the trajectory of your life with that decision. It's not something to take lightly.

I honestly believe the current administration got rid of the GradPlus option to keep certain demographics from attaining certain careers. Don't think that turning to private student loans now is the solution...it's actually the trap they want those "certain demographics" to fall right into.

Just so others understand, with a federal loan balance of 500, 600, or even 700K, almost all of that is forgiven after 10 years of PSLF...and for at least half of those years, I have seen programs offer generous loan forgiveness amounts that will cover whatever the monthly payments are for each of those years.

Now imagine if you had private student loans in those amounts? 😳

 

[JunoJason]

Assuming you max out the federal loans (as most all should), PSLF can still deliver decent value. With the new RAP plan available, income-driven payments during training + in the initial years of practice until 10 are complete, out-of-pocket payments can cumulatively be as little at $100 - $125k. And as you suggested, if a program like NHSC or an employer are offering repayment during those years to cover RAP payments, you can put a nice dent in the private loans during early practice years as well.

It's obviously not as generous as unlimited PSLF for those that are on that track. But it's doable with some planning. I've seen some docs 8+ years into PSLF and then their hospital gets bought by HCA or Tenet. Need to financially be prepared for such curve-balls given the all-or-nothing nature of PSLF and current program pressure.

Also, federal student loans aren't automatically dischargeable in bankruptcy. Similarly, private loans will likely require "undue hardship" for bankruptcy discharge consideration.

 

[AJ25]

Assuming you max out the federal loans (as most all should), PSLF can still deliver decent value. With the new RAP plan available, income-driven payments during training + in the initial years of practice until 10 are complete, out-of-pocket payments can cumulatively be as little at $100 - $125k. And as you suggested, if a program like NHSC or an employer are offering repayment during those years to cover RAP payments, you can put a nice dent in the private loans during early practice years as well.

It's obviously not as generous as unlimited PSLF for those that are on that track. But it's doable with some planning. I've seen some docs 8+ years into PSLF and then their hospital gets bought by HCA or Tenet. Need to financially be prepared for such curve-balls given the all-or-nothing nature of PSLF and current program pressure.

Also, federal student loans aren't dischargeable in bankruptcy. Similarly, private loans will likely carry these same features that would require "undue hardship" for bankruptcy discharge consideration.

You're making a point but leaving out important additional information. Federal loans still have IBR protections and full forgiveness after 20-25 years after consistent (IBR) repayments. How you are equating that with private student loan options is quite confusing.

 

[JunoJason]

You're making a point but leaving out important additional information. Federal loans still have IBR protections and full forgiveness after 20-25 years after consistent (IBR) repayments. How you are equating that with private student loan options is quite confusing.

Um... It's the first thing I said under cons.

For those still listening, please note that 20+ year IBR "full" forgiveness is taxable beginning January 1st, when the temporary exclusion expires. This may be the optimal outcome for some physicians, but definitely not the vast majority. A potential "tax bomb" should be avoided if at all possible.

 

[AJ25]

Um... It's the first thing I said under cons.

For those still listening, please note that 20+ year IBR "full" forgiveness is taxable beginning January 1st, when the temporary exclusion expires. This may be the optimal outcome for some physicians, but definitely not the vast majority. A potential "tax bomb" should be avoided if at all possible.

You said nothing about the specifics (that I pointed out) of the federal forgiveness programs...and you are also editing your posts after I am replying.

Regarding the "tax bomb" you should also discuss how PSLF is "tax-free." Most people who take out federal loans and go to medical school today will be going with PSLF because (unless you're stupid) 10 years of repayment is quicker than 20-25 years.

Private student loans should be avoided AT ALL COSTS!

 

[pigsinacloth]

Um... It's the first thing I said under cons.

For those still listening, please note that 20+ year IBR "full" forgiveness is taxable beginning January 1st, when the temporary exclusion expires. This may be the optimal outcome for some physicians, but definitely not the vast majority. A potential "tax bomb" should be avoided if at all possible.

While I see your point in trying to avoid the "tax bomb", it could still potentially be beneficial to people if it saves them money in the long run. I think the big thing to consider is realistically what will your situation be and will you prepare by saving money that will go towards this giant tax year. If someone is very diligent I could see a way that this would mean nothing to them, where as if they are not it could be really bad. I would have to run the numbers, but I think that this is more person dependent and would require someone to think about it from their own perspective.

Also you had a point earlier in this thread about hospitals being bought by HCAs. While that is kind of a risk for some, it's not really a real risk. Many hospitals are attached to med schools and universities. They would never sell their hospital to an HCA even if they are technically losing money on the hospital. It would decrease their name recognition and prestige. While that may not make sense from a strictly numbers perspective that a business person might look at, it makes sense from a world wide name recognition perspective. This allows them to be profitable in their other ventures and continue to attract talent that makes them money in other ways.

 

[JunoJason]

While I see your point in trying to avoid the "tax bomb", it could still potentially be beneficial to people if it saves them money in the long run. I think the big thing to consider is realistically what will your situation be and will you prepare by saving money that will go towards this giant tax year. If someone is very diligent I could see a way that this would mean nothing to them, where as if they are not it could be really bad. I would have to run the numbers, but I think that this is more person dependent and would require someone to think about it from their own perspective.

Also you had a point earlier in this thread about hospitals being bought by HCAs. While that is kind of a risk for some, it's not really a real risk. Many hospitals are attached to med schools and universities. They would never sell their hospital to an HCA even if they are technically losing money on the hospital. It would decrease their name recognition and prestige. While that may not make sense from a strictly numbers perspective that a business person might look at, it makes sense from a world wide name recognition perspective. This allows them to be profitable in their other ventures and continue to attract talent that makes them money in other ways.

Yes... there are definitely some who will pay the least by riding out the 20-25 years, and doing the numbers earlier than later is critical (and also understanding the "art over science" nuances like filing Separately vs Jointly when you're married)
In a perfect world, non-profits don't sell to HCA or other large for-profits. But I have seen this enough to bring it up as a consideration. Check out this list of HCA acquisitions here for context.
I am in total agreement that private loans should be minimized and avoided where possible; unfortunately they'll be a necessary evil next year, so it's best to learn how to navigate that market carefully. I hope this change doesn't deter so many that we can't meet the projected need for physicians in the years to come.