With Grad PLUS gone, DVM students face harder choices between federal and private loans

The authors note that $50,000 a year may not cover the full cost of attendance at many veterinary colleges, especially for nonresident students or students at private schools. As a result, they argue, most veterinary students will now need private loans for at least part of their education.

The debt is already large. AVMA data cited in the piece show that 2026 graduates with DVM program debt owed an average of $227,588. More than 40% owed over $200,000, and 7.9% owed more than $400,000.

For 2026-27, federal direct unsubsidized loans for graduate and professional students carry an 8.07% interest rate. Graduate PLUS loans, for students still eligible under the transition rules, carry 9.07% plus a 4.228% origination fee.

Some private lenders advertised fixed rates to LMU students starting at around 2% to 3%. The authors stress that private loans depend on credit, so the rate a student actually gets depends on the borrower, any cosigner, and the lender's underwriting.

Federal loans come with protections that private loans generally don't match: income-based repayment, deferment or forbearance, and forgiveness programs. That includes Public Service Loan Forgiveness after 120 qualifying payments for people working full time for eligible employers, such as in academia, government, the military, or qualifying nonprofits. The authors also warn that refinancing federal loans into private ones generally means losing these benefits for good.

The authors describe the federal-versus-private decision as a judgment about risk, not a choice with one right answer. A student headed for a well-paid private practice job who plans to pay off debt quickly may prefer the lowest rate. A student considering public service, or worried about future income, may value federal flexibility more.

They call for teaching students the basics: fixed versus variable rates, fees, interest capitalization, and cosigner release terms. They point to a Today's Veterinary Business survey of the class of 2021, in which 60% had not consulted a financial adviser and 22% had not decided how they would repay their debt.