AAVMC statement on HR 1 BBB (sent to applicants, shared with advisors)

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AAVMC drafted a statement that we sent to our programs and applicant pool. We also recorded two short videos, one of which is posted on our LinkedIn page addressing the new bill. We've seen a lot of misinformation in pre-vet forums and wanted to provide accurate information on the situation.

Below is what we sent to applicants for reference:

As an applicant planning for veterinary school, it's important to stay informed about U.S. federal government policy changes that could affect how you finance your education. To that end, AAVMC has examined the changes to Federal Student Aid in the "One Big Beautiful Bill Act." Veterinary school is considered a professional graduate program, a type of advanced degree that prepares students for careers in licensed professions such as veterinary medicine, human medicine, dentistry, or law. Understanding how new legislation impacts professional education funding is essential as you prepare for the next phase of your academic and career journey.

Take Charge of Your Path Forward

Don't give up! We know that these changes to federal student aid may feel overwhelming, but your dream of becoming a veterinarian is still within reach. The key is to plan ahead and take control of your financial path.

• Get informed about the new rules so you know what to expect.
• Check how much you've already borrowed and how much federal aid you'll still have access to.
• Have open, honest conversations with those in your life who can provide financial support.
• Research private lenders and compare terms; there's no one-size-fits-all solution, so shop around.
• Monitor your credit score and make smart financial choices now to keep your options open later.

Most importantly, don't let this discourage you from applying to veterinary school. Your passion, resilience, and preparation will carry you forward. The veterinary profession needs bright, compassionate minds like yours, so keep moving forward and use this time to make empowered decisions.

AAVMC Examines Changes to Federal Student Aid Enacted in the "One Big Beautiful Bill Act"

The recent landmark legislation passed by Congress, commonly referred to as the "Big Beautiful Bill," introduces a significant overhaul of the federal student loan system. Designed to reduce federal loan exposure and reshape graduate and professional education funding, the new law imposes strict borrowing caps, eliminates many repayment plans, and redefines institutional eligibility for student loan access.

Effective July 1, 2026, these provisions will dramatically alter how students finance higher education, particularly those pursuing advanced degrees in veterinary medicine. The legislation is expected to have far-reaching implications for student access, institutional planning, and long-term workforce development.

"This legislation presents significant challenges for the future of veterinary education," said Dorothy Gray, Interim Chief Executive Officer and Chief Operating Officer at the American Association of Veterinary Medical Colleges (AAVMC). "Federal student aid has long been a cornerstone of accessibility to the veterinary profession. The new borrowing caps and loss of flexible repayment options risk discouraging talented students from entering a field that is already facing workforce shortages and rising educational costs."

To help the academic veterinary community prepare for the changes ahead, AAVMC is providing a breakdown of the bill's provisions so you can make informed decisions about your future education plans.

1. Federal Student Loan Borrowing Limits

Effective July 1, 2026, lifetime borrowing caps will be imposed across all federal student loans, including both undergraduate and graduate study:

• $100,000 lifetime cap for graduate (master's) degree programs
• $200,000 lifetime cap for professional degrees (including medical, dental, law, and veterinary degrees)

These totals include any undergraduate borrowing. Once these caps are reached, no additional federal student loan funds will be available.

In addition, the bill significantly restricts eligibility for deferments and forbearances, effectively eliminating most options for temporarily pausing repayment.

1. Elimination of the Grad PLUS Loan Program

The legislation phases out the Grad PLUS loan program, which previously allowed graduate and professional students to borrow up to the full cost of attendance. With this change, students can no longer use federal aid to cover total costs beyond the new lifetime borrowing caps.

1. Overhaul of Loan Repayment Plans

All existing income-driven repayment plans-including SAVE, PAYE, REPAYE, and IBR-will be eliminated. Only two repayment options will replace them:

• Standard Repayment Plan:
  Fixed payments over 10 to 25 years, depending on loan balance. Repayments are not based on income.
• Repayment Assistance Plan (RAP):
  Monthly payments between 1% and 10% of a borrower's discretionary income, with a minimum required payment of $10 per month.

IMPORTANT: Borrowers currently enrolled in the SAVE plan must select a new repayment option between July 2026 and June 2028. If they do not, they will be automatically enrolled in the RAP plan.

1. Interest-Free Payments During Income Declines

Under the new law, if a borrower's income drops and they are still making payments on their student loans, those payments will now go entirely toward reducing the principal-not interest. This means that no new interest will accrue during periods of low income, as long as the borrower is actively making payments. It's a significant shift that ensures borrowers are not penalized with growing balances when they are earning less but still meeting their repayment obligations.

Final Note

AAVMC remains committed to advocating for policies that promote access, equity, and sustainability in veterinary medical education. These legislative changes represent a major transformation in how students and families finance higher education. While the full implementation timeline spans multiple years, we urge all borrowers to begin planning now.

We will continue to monitor regulatory developments from the U.S. Department of Education and provide updates as more guidance becomes available.

For questions or assistance, please email us.