New legislation by U.S. Rep. Josh Harder would preserve critical federal loans for many students pursuing careers as doctors, dentists, pharmacists, nurses and other health care professionals.

Working closely with University of the Pacific President Christopher Callahan, the San Joaquin County congressman introduced the Protecting Health Care Workforce Pipelines Act. The bill would postpone for five years the planned elimination of the federal government’s Grad PLUS loan program for professional and graduate students studying in health care professions near underserved health care regions such as California’s Central Valley.

“We have a devastating health care practitioner shortage here in the Valley, and the last thing we need is to make it harder to train students wanting to enter the medical field,” Harder said. “My bill reverses these devastating cuts to financial aid for local students and instead invests in training the next generation here in our community. Our families desperately need more accessible and affordable health care here in the Valley, and this bill is a key piece of making that a reality.”

The Grad PLUS loan program began nearly 20 years ago and covers up to the full cost of attendance for students in graduate and professional programs. Many students who use the loans are pursuing careers in high-need health care fields. The federal One Big Beautiful Bill, enacted in July 2025, eliminates Grad PLUS loans for new borrowers beginning July 2026.

Harder’s legislation would delay elimination of the Grad PLUS loan program until 2031 for professional and graduate students studying in health care fields within 100 miles of either a federally designated Health Professional Shortage Area or Medically Underserved Area.

Grad PLUS loans account for about $20 billion in lending nationally each year—$2 billion in California alone. At Pacific, 1,700 students fund their education through Grad PLUS loans as they pursue in-demand careers at the Arthur A. Dugoni School of Dentistry, Thomas J. Long School of Pharmacy, School of Health Sciences, McGeorge School of Law and Benerd College.

“The loss of the highly successful Grad PLUS loan program poses a grave threat to the creation of a highly qualified workforce in California and across the country—especially in underserved health regions such as the Central Valley,” Callahan said. “We are indebted to Congressman Harder for fighting to retain this critically important and highly successful student loan program.”

In November, Callahan testified before the California State Assembly Higher Education Committee that the Grad PLUS program has been a “great investment” for the federal government, successfully producing new health care professionals while boasting low default rates.

Without Grad PLUS, many students would have to seek commercial loans, but students from lower economic backgrounds may not qualify for those loans. Pacific and other universities are preparing to cover a portion of the risk for commercial lenders in a risk-share model, but students with the lowest credit scores would remain ineligible for any commercial loan options, leaving them unable to pay for their education.

“The elimination of the Grad PLUS program is bad for America, our economy, our competitiveness, our workforce and our nation's future,” Callahan told the legislative committee. He urged state lawmakers to help fill the need triggered by the elimination of Grad PLUS.

Callahan serves on the executive board of the Association of Independent California Colleges and Universities, which represents more than 85 independent, nonprofit colleges and universities across the state. The organization advocates at the state and federal levels to support students and promote the role of independent higher education in California’s future workforce.

AICCU is actively working to find state and federal solutions to the elimination of Grad PLUS. 

“The Grad PLUS program has been a critical and effective investment in California’s health care pipeline, especially in regions facing acute workforce shortages,” said AICCU President Kristen F. Soares. "Eliminating this program puts graduate and professional education out of reach for thousands of students who are preparing to serve our communities as nurses, pharmacists, dentists, physicians and other health care professionals. AICCU strongly supports Congressman Harder’s legislation and is working at both the state and federal levels to ensure students can continue to access the financing they need to enter high-demand health professions.”

AICCU also is working with lawmakers in Washington on another bill filed this week on Capitol Hill by Rep. Mike Lawler of New York. The bill would make students in fields such as nursing, physician assistant, audiology, physical therapy, social work, occupational therapy and public health eligible for up to $50,000 annually in the Federal Direct Unsubsidized student loan program. Under new government eligibility rules to take effect July 1, students in those fields of studies would be limited to $20,500 annually while others in disciplines such as medicine, dentistry and law would be eligible for $50,000 annually.