Adtalem Global Education Inc. and Sallie Mae have entered into a Letter of Intent to develop alternative financing options for students pursuing healthcare education. This collaboration anticipates the discontinuation of the federal Grad PLUS loan program, which is set to phase out starting July 1, 2026. The initiative aims to support students enrolled at Adtalem’s five institutions, which collectively represent a substantial pipeline of future healthcare professionals in the United States.
The need for this financing solution arises from a pressing demand within the healthcare sector, which is already grappling with significant shortages. According to federal data, healthcare occupations are projected to grow at a considerably faster rate than the overall labor market from 2023 to 2033. The growth is driven by increasing demands in the $4.3 trillion U.S. healthcare sector. Currently, over 7,000 areas in the country are designated as Health Professional Shortage Areas, with the Association of American Medical Colleges forecasting a potential physician shortfall of up to 124,000 by 2034.
Steve Beard, CEO of Adtalem, emphasized the importance of this partnership, stating that it aims to “expand financing access” for the company’s more than 90,000 students. Many of these students are poised to fulfill essential roles within the nation’s healthcare system. The need for such initiatives is underscored by the critical workforce demands facing the industry.
In parallel, Jon Witter, CEO of Sallie Mae, highlighted the collaboration as an opportunity to craft “innovative and scalable solutions” that will address both the financing needs of students and the escalating demand for qualified healthcare professionals. The proposed framework is expected to feature deferred repayment options and degree-specific terms tailored specifically for healthcare education.
Both companies are currently working towards finalizing a definitive agreement, with plans to announce specific financing products in the coming months, pending regulatory approvals. The outcome of this collaboration could significantly influence how future healthcare students finance their education, ultimately impacting the availability of professionals in a critical sector.
As the healthcare sector continues to evolve, partnerships like that of Adtalem and Sallie Mae underscore the importance of addressing financing challenges, which remain a significant barrier for many aspiring healthcare workers.