This bill establishes consistent eligibility requirements for foreign medical schools seeking federal student aid to increase accountability and protect U.S. students and taxpayer dollars.
Richard Durbin
Senator
IL
The Foreign Medical School Accountability Fairness Act of 2026 establishes consistent federal eligibility requirements for foreign graduate medical schools seeking to participate in U.S. student aid programs. This aims to increase accountability and protect U.S. students from high debt burdens and poor outcomes often seen at currently exempt for-profit institutions. The bill repeals existing grandfather provisions and sets new standards based on student citizenship and exam success rates. Current students at affected schools are protected and may continue receiving aid under certain conditions.
New Accountability Rules for Foreign Medical Schools: 75% Exam Pass Rate Required for Federal Loans
The Foreign Medical School Accountability Fairness Act of 2026 aims to close a long-standing loophole that has allowed certain offshore medical schools to receive billions in U.S. taxpayer-funded student loans without meeting the same standards as their peers. For years, three major for-profit Caribbean schools have been 'grandfathered' in, exempt from rules that require most foreign schools to have at least 60% non-U.S. students and a high bar for academic success. This bill levels the playing field by requiring all foreign medical programs to prove their worth: specifically, at least 75% of their students must pass the U.S. medical licensing exams to keep access to federal loan money.
The Reality Check on Residency
If you have a friend or family member considering a 'Plan B' medical school in the Caribbean, this bill highlights some sobering math. Currently, graduates from U.S. medical schools land residency spots—the essential next step to actually practicing medicine—about 93% of the time. For foreign-trained grads, that rate drops to roughly 67.8%. By tightening the rules in Section 4, the bill tries to ensure that if a student is taking on six-figure debt, they are attending an institution that actually prepares them to work in a hospital. It’s a move designed to protect aspiring doctors from finishing school with a massive bill but no license to practice.
Protecting the 'Grandfathered' Students
For those currently enrolled in one of these programs, there is a built-in safety net in Section 5. If your school suddenly loses its eligibility because it can’t meet the new 75% pass rate or the 60% non-citizen enrollment rule, you won't be left high and dry immediately. The bill allows current students to keep their federal loans until they graduate, withdraw, or for up to four years after the school loses its status. This 'finish what you started' provision ensures that students who played by the old rules aren't penalized for a sudden change in federal policy mid-semester.
The Cost of Accountability
While the goal is to protect taxpayers and students from low-performing programs, the shift could make it harder for some U.S. students to find a path into medicine. If several large Caribbean schools lose their funding, the number of available seats for U.S. citizens could shrink, potentially making the journey to becoming a doctor even more competitive. However, the bill leans into the idea that a degree is only worth the paper it’s printed on if the school can prove its students are actually passing their boards and entering the workforce.