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What about not offering federal loans to students wishing to travel abroad? That would significantly reduce the number of students able/willing to go to a foreign school.
So, cap US schools, reduce the number of foreign trained graduates...I just don't see why you think that would drive up the number of vets produced in the US.
So those of us wishing to study outside of the US at veterinary schools should have to suffer because you don't want to take the hit where the problem actually lies (within the US). There needs to be a restriction on the expansion of veterinary schools in the US as well as a restriction on the opening of new schools within the US. Capping class sizes should also occur. Stopping federal funding to students wishing to study outside the US is not going to solve the problem and may also compound it. The majority of the students studying in the Caribbean may return to the US for work, but that is not completely true for the students studying in Europe/UK/Australia. We now have the ability to work anywhere in the world and often choose to do so. In fact, my plan is to not come back to the US and to work in Europe. So by limiting our ability to get loans you are also essentially keeping us in the US and keeping us as your competition - which I thought was your main concern.
On another note - a lot of foreign graduates from veterinary schools all over the world seek to work in the US, so there will always be those graduates looking for work in the US as well. You can never control that and many employers look for a graduate with a diverse background.
Perhaps for once the US needs to take a look into its own backyard to solve the problem instead of looking elsewhere. If living outside of the US has taught me anything, it has taught me that the US as a whole has a lot less of it's ****e together than we think and it & the people in it rarely take responsibility for anything.