529 and medical school

[Anonymous]

DD is applying for Fall of 2026.

Went to undergrad in VA. VA 529 paid for all 4 years (tuition and living expenses). Still has an open VA 529 account.

DS has been working full-time in the medical field since Jan 2024. Salary is $55k/year. Will work till June 2026.

New BBB law will drastically limit loans and get rid of GradPlus loans beginning July 1, 2026.

- Capped at $200,000 total borrowing for these programs.
- New annual borrowing limit of $50,000 per year.
- This is a sub-limit inside the $257k total cap.
- Grad PLUS loans will be eliminated for new borrowing after July 1, 2026.

She will take out the full $50k/year for the 4-year cap of $200k. Obviously, these limits will not offer full med school tuition/expenses coverage for the 4 years of med school.

Between now (August 1, 2025) and when she starts med school (and ongoing after admission for 4 years of med school), does it make sense for me to plow money into her VA 529? Or should she do it. She'll be 24 in two months.

What are the loan implications if she does it vs. me?

[Anonymous]

Get a loan financial planner and ask. There is one available for vet students on facebook. I am sure they have one for medical. Use there advice. Not random folk here.

[Anonymous]

You shoulder filter any "cash" tuition money through the 529 plan anyways. We have put money in one day and paid tuition the next day with the same money. That way you get some state tax benefits (in Virginia you can keep taking the max for as many years as you have a balance of what you put in).The account owner gets the tax benefit. You would probably benefit from it more as your taxes are higher, so just use your account that is already open and if you want to pay some of your daughter's state taxes for this year that would be nice.

[Anonymous]

It is only a year. I would both put the max into 529 AND save as much as possible. This is not a question for the internet.

[Anonymous]

Wow I am just reading about this BBB law. This is going to impact students for college and grad school.

NYU and JHU offer free tuition. Good luck trying to get into those programs.

[Anonymous]

I posted about this. I can’t even begin to understand how this won’t impact who can go to med school. Thank God you have the financial ability to pay.

[Anonymous]

I would think there will be plenty of private loans for med students. Med students are a very good risk for lenders.

[Anonymous]

Just help her with as much as you can.

[Anonymous]

we paid about 75k per year for our kid's in-state medical school in Cali.

[Anonymous]

Anonymous wrote:we paid about 75k per year for our kid's in-state medical school in Cali.

In state public cost 75k?!?!?

[Anonymous]

Anonymous wrote:I would think there will be plenty of private loans for med students. Med students are a very good risk for lenders.

I don’t understand this cap on loans.

I guess private lenders will now do a credit analysis on potential borrowers? This doesn’t sound as bad. Some students really should not be borrowing hundred of thousands of dollars they will never be able to pay back.

[Anonymous]

Anonymous wrote:

Anonymous wrote:we paid about 75k per year for our kid's in-state medical school in Cali.

In state public cost 75k?!?!?

The law re: caps on gov loans was changed in 2006, and tuition has risen steeply since then. I attended a state school in NJ 2008-2012, and tuition rose steeply while we were there. It was something like $17K/year to start, $30/year by the end. It’s now $45K/year. Add on fees ($2-5K/year) and rent/food/car/etc and you can easily get to $75+/year.

It makes me anxious thinking about either (or both!) of my children attending medical school. Husband and I are both doctors, and we have some family help…. but these tuition rises are out of control. I do wonder if removing the cap on student loans encouraged that rise.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would think there will be plenty of private loans for med students. Med students are a very good risk for lenders.

I don’t understand this cap on loans.

I guess private lenders will now do a credit analysis on potential borrowers? This doesn’t sound as bad. Some students really should not be borrowing hundred of thousands of dollars they will never be able to pay back.

The cap is for federal student loans. It doesn't apply to private student loans.

For undergrads at least, private lenders generally require a parent co-signature and credit check. A credit check on an 18-year old is pretty worthless in most cases.

[Anonymous]

Anonymous wrote:

Anonymous wrote:we paid about 75k per year for our kid's in-state medical school in Cali.

In state public cost 75k?!?!?

Lol. Colleges have incentives to keep rising tuition because people keep paying. That's econ 101.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I would think there will be plenty of private loans for med students. Med students are a very good risk for lenders.

I don’t understand this cap on loans.

I guess private lenders will now do a credit analysis on potential borrowers? This doesn’t sound as bad. Some students really should not be borrowing hundred of thousands of dollars they will never be able to pay back.

The cap is for federal student loans. It doesn't apply to private student loans.

For undergrads at least, private lenders generally require a parent co-signature and credit check. A credit check on an 18-year old is pretty worthless in most cases.

This seems totally reasonable to me. Basically, the fed gov will cover state schools, but not expensive private colleges.

I thought it was doomsday for future med and law students. I’m sure there will be plenty of lenders willing to lend to future doctors and lawyers, maybe not a 100k per year sociology degree where they may not get paid back. Seems reasonable to me.