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During interviews a few weeks ago with applicants to veterinary school at Kansas State University, where he teaches, Dr. Shane Lyon heard something that stood out. It was not about the candidate's academic achievements, animal care experience or passion for the profession.
It was about the cost of schooling.
Asked about their interest in K-State, the candidate replied that "they were shopping schools that were not going to break the bank for them," Lyon recounted.
Attending veterinary school in the United States has long been expensive, resulting in student debt disproportionate to the profession's earning potential, on average. That reality was not the candidate's particular concern, however. Specifically, the applicant cited impending changes to federal student lending programs that will likely lead many veterinary students to borrow from commercial lenders, a potentially pricey and financially fraught move.
Beginning July 1, U.S. students entering professional school will be unable to borrow from the federal government to cover up to the full cost of attendance, a benefit that's been available to their predecessors for decades. Instead, their federal loans will be capped at the cost of attendance or $50,000 per year, whichever is less, with a maximum program limit of $200,000.
Vanishingly few veterinary programs in the country cost less than $200,000 to complete when living expenses are factored in. At some programs, tuition and fees alone exceed that. The cap applies to all students starting professional school after June 30, including those studying medicine, dentistry and law.
"These limits are going to really hinder students and the health professions," Diana Dabdub, senior director for admissions and recruitment affairs at the American Association of Veterinary Medical Colleges, said.
Some worry that the changes could significantly reshape the student body. Lyon at K-State said he and colleagues are "terrified how this will impact admission and enrollment numbers. There may be some students who are like, 'I don't care how much it costs. I want to be a veterinarian. Take my money,' " he said. "But there are going to be some students [who] ... decide that, financially, they're going to do something else with their life, and we are going to lose qualified applicants and people that have the potential to become great veterinarians."
That possible consequence might not manifest immediately. While some aspiring veterinary students are aware of the coming changes, many are not.
Laura Flatow, a clinical associate professor and pre-veterinary coordinator at Berry College, a private school in Georgia, said only about half of a group of 15 students she talked with in mid-February knew about the new loan caps.
"The ones that were aware said they are concerned about it, but they haven't altered their plans for applying to vet schools," she said by email. "All the students indicated that they would like to learn more about what these new loan caps mean for them."
Contacting a sampling of 11 veterinary schools and reviewing the websites of all 38 schools in the U.S., the VIN News Service found that approaches to providing information run the gamut. Some have been reaching out to applicants for months to alert them to the loan limits, while others appear silent on the matter. As of last week, seven programs had easy-to-find information on their websites.
To the extent that applicants may need to select a school based on affordability, understanding the ramifications of the federal lending limits is important before they commit to a program. The deadline at most schools to commit for the 2026-27 academic year is April 15.
What's changing
Not every veterinary student borrows money for their education, but four out of five do. The average debt of borrowers in the graduating class of 2025 was $212,499, according to the American Veterinary Medical Association. The average pay for those graduates hired into private and corporate practice, where the majority of U.S. veterinarians are employed, was $134,244, AVMA data show.
Historically, students who needed financial assistance could tap a combination of federal loans for up to the full cost of attendance — encompassing tuition and fees, books and supplies, housing, food, transportation and personal expenses — a figure that each school must calculate and publicize. Students would first obtain what's known as a Direct Unsubsidized Loan, which was capped (currently between $40,500 and $47,167 per year), and borrow the balance in a Direct PLUS Loan, also known as Grad Plus.
Barring a transfer or interruption in their enrollment, students who have taken federal loans before July 1 can continue borrowing under the old terms until they finish their program or until July 1, 2029, whichever comes first.
But those who take loans after July 1 will not have access to Grad Plus, which is being phased out. They will be limited to the Direct Unsubsidized Loan, with a new annual limit of $50,000 and a professional school maximum of $200,000.
For context, the cost of attendance posted by schools ranges from $164,070 to $483,771. The median is about $242,000 for in-state residents of state schools and $336,000 for out-of-state residents at state schools and at private institutions.
Another coming change: The default standard repayment term, previously 10 years, will be determined by the borrower's starting loan balance for anyone who receives a Direct Loan after June 30. Those borrowing in excess of $100,000 will get the longest standard repayment term, 25 years. Alternatively, borrowers may make monthly payments based on their income and have any remaining balance forgiven after 30 years of on-time payments.
The federal loan repayment system allows for deferments and forbearance, as well as death and disability discharges. In addition, borrowers employed by eligible employers may qualify for Public Service Loan Forgiveness.
Repayment options are important to understand, because with the coming federal lending limits, students who cannot pay out of pocket must find supplemental sources of funding — most likely private loans.
Commercial private lenders typically offer less flexibility in repayment and might not allow for payment pauses or adjustments during periods of low income. In addition, borrowing from a private institution usually entails a credit check and might require a cosigner.
Dr. Tony Bartels is a student debt educator at the Veterinary Information Network (an online community for the profession and parent of VIN News) and at the nonprofit VIN Foundation. Bartels' rule-of-thumb advice to students is to keep their private loan balance to $50,000 or less upon repayment.
His advice is geared toward making repayment manageable: By Bartels' calculations, a private-loan balance of $50,000 at an interest rate around 10% and a repayment term of 15 years results in a monthly payment of about $535. That, together with an income-driven monthly payment on federal student loans, produces a total student debt payment that's within 20% of after-tax income for a veterinarian earning $140,000 a year.
How can aspiring veterinarians contain their borrowing needs, given the high cost of education? Students often are advised to cut costs by sharing housing, cooking their own meals rather than eating out, traveling less and so forth. Bartels calls that "nibbling at the edges. You can only frugal so much," he said.
Instead, he urges would-be veterinarians to look hard at the biggest factors in the cost of attendance. "Tuition and fees are the highest by far," he said. "If you really want to minimize the impact, pick the school that has the lower tuition and fees for you. You have a better chance to frugal your way out of significant private student loan need if you choose an in-state or [otherwise] discounted veterinary school seat."
One other variable that could make a difference, he said, is making a bid for Health Professions Student Loans, which are administered by the federal Health Resources and Services Administration — not the Department of Education — and are not subject to the caps. Bartels said students interested in that loan program should inquire with their prospective schools, because not all schools participate.
How some schools are responding
Students attending the costliest schools will, naturally, have the greatest challenge unless they can pay the bill with their own or family funds. A VIN News review of every U.S. school's posted cost of attendance shows Midwestern University, a private school in Arizona, with the highest, up to $483,771 over four years for students living off-campus, based on projections in 2025-26.
Asked what steps Midwestern is taking to alert its applicants to the loan limits and help them prepare, a university contact said by email that officials "elected not to comment on this topic for now."
The University of Pennsylvania, another pricey school, has taken a more proactive and communicative approach. Soon after the loan caps were signed into law last July, as part of legislation dubbed the One Big Beautiful Bill Act, the university decided to develop preferred lending arrangements with several private lenders.
"It became pretty clear to us that things would change pretty drastically ... and it would be our incoming students for all of our programs who were going to be hit the hardest," Elaine Papas Varas, Penn's director of student financial aid, said.
Penn's four-year veterinary program cost of attendance is pegged at $384,116 for state residents and $424,115 for out-of-staters, as of the 2025-26 academic year.
Lenders wishing to be designated as "preferred" for providing supplemental financing had to submit proposals to the school. "We're telling the lender, 'This is what we want: We want something unique and special for our Penn students' ... and 'By the way, think out of the box,' " Varas recounted.
Penn asked, for example, for multi-year loan approvals so students would know that they'd have the funding to finish their degree. It asked for preapprovals (with a soft credit check) so that applicants with admission offers could evaluate whether they could afford to accept. It asked for repayment deferments to allow time for internships and residencies. It asked for forbearance options for borrowers who may need to pause their payments in the future.
Varas said 11 lenders submitted proposals; the university chose five as "preferred." They don't all provide all the benefits requested. Rather, each has its own selection of options.
The university receives no compensation from the lenders, Varas said, and borrowers are not obliged to use a preferred lender. "If they want to borrow through their family's credit union, sure," Varas said, "you have that choice."
The preferred lenders will be monitored by Penn to ensure they're providing services as promised, Varas said.
In early January, Penn began notifying its applicants about the federal lending changes and private borrowing options and scheduling virtual sessions to review details. "We do three to four a week, during the day, evenings, weekends," Varas said.
"These are not necessarily students who are going to come to Penn," she added. "What we're hearing from our applicants is, 'This is great. We're not getting this from anybody else.' "
While some schools maintain lists of private educational lenders, the extent of Penn's vetting of lenders is rare, and possibly unique, among U.S. universities with veterinary programs. But some schools have been similarly reaching out to students with information about the upcoming changes.
One is Kansas State. The public school has one of the most affordable in-state prices among veterinary programs in the country. K-State's 2025-26 cost of attendance is $48,742, which is under the $50,000-per-year borrowing cap. However, about half of its students are nonresidents. The one-year nonresident cost of attendance is currently $81,102, which exceeds the federal annual lending limit by more than $30,000.
Mindful of expense to students, the school long has acted to mitigate costs wherever possible, said Lyon, the faculty member who participated in applicant interviews. K-State froze tuition during a recent six-year period, for example, and eliminated textbooks, he said. It also provides matching funds on outside scholarships, along with maintaining an endowed internal scholarship fund.
Lyon teaches clinical skills, a core first- and second-year course. The curriculum includes communication skills, teamwork and personal finance. Making sure students receive solid information on the ins and outs of borrowing and repayment is one of Lyon's priorities.
This year, sharing information before school begins about the borrowing changes is critical. That's where Dr. Callie Rost, the assistant dean for admissions, stepped in. On July 8 last year, four days after the changes were signed into law, the school sent an email alert to all who were in the process of applying to K-State.
After admission offers went out on Jan. 31, the school sent further information to those who had been invited to enroll. During orientation, just before classes begin in August, the new students can expect a session dedicated to financial aid and the new loan caps.
Similarly, a financial education specialist at Colorado State University who works exclusively with DVM students, Glenn Lyons, has been giving presentations to applicants about the loan caps and will offer individual counseling starting this summer to those who enroll. The service, rare among veterinary schools, is one that Lyons provides routinely to all students in the program.
New programs enter a changed landscape
While the first class at Utah State University's new veterinary school, which started classes last August, can continue borrowing from the federal government under the old terms for the remainder of their program, the next class is in a different position.
"It's just so daunting," said Michael Bishop, Utah State director of student services, calling the shift "a real challenge."
Utah's webpage on expenses breaks down what it calls the funding gap — the difference between the cost of attendance and what's available in federal loans. "We try to help the students go in eyes wide open," Bishop said.
The estimated cost of attendance for Utah residents is $42,664 per year for the first three years, putting it within the annual borrowing cap. However, nonresidents (with an estimated cost of attendance of $67,692 per year for the first three years) and fourth-year students (residents, $66,045; nonresidents, $91,073) who need loans to cover school will need to find other sources.
Concern about the loan caps permeates through the school's ranks, from the admissions director and a recruiter to financial aid advisers, a professional skills director and beyond, Bishop said. During a recent meeting, he said, members of the scholarship committee mulled whether the program might encourage donors to help offset students' funding gaps, especially in their fourth year.
Bishop hopes to see educational borrowing factored into sessions on professional financing, including how what students do now will impact their prospects for owning a practice one day.
One new school that isn't facing an immediate challenge is at Lincoln Memorial University in Orange Park, Florida. The program has an unconventional academic calendar: Its first class matriculates in June, enabling students who need federal loans to enter the system before the borrowing caps kick in.
"Looking ahead, the students who expect to fall under the new rules have expressed understandable concern about what financing options will look like beyond federal caps, particularly around private loan interest rates, credit score requirements and the availability of cosigners," Dean Kimberly Carney said by email. "Many are trying to plan early and want clear guidance on how the changes may affect total cost and repayment expectations."
As programs work through how best to support students, the University of Arizona veterinary school, which opened in 2020, faces a singular question.
UA's is the only three-year program in the country. Does that mean its students will be eligible to borrow only $150,000 in total ($50,000 a year for three years)?
Mindy Burnett, a program spokesperson, said by email that the university believes, but has not confirmed, that its students will be able to borrow up to the $200,000 cap. "Based on our understanding of the wording [in the law] indicating an academic year, not an annual year, we believe our students should be able to take advantage of the $200,000 limit for professional students. However," she added, "this is our interpretation of the bill's language, and we will continue to monitor the evolving process."
UA's posted annual cost of attendance is $83,799 for residents and $111,936 for nonresidents.
Arizona, along with veterinary schools at Clemson University (opening this fall) and Rowan University (which opened last fall), were three of the five new programs contacted by VIN News that said they have nothing to share yet about programs or strategies on the new federal loan limits.
Flatow at Berry College anticipates making the borrowing parameters a bigger part of information sessions with pre-veterinary students.
"These loan caps are going to require advisers to learn more about the financial aid aspect of veterinary school, in addition to advising students on being well-rounded, competitive applicants," she said.