(Bloomberg) -- Stanford University said it will use a $55 million commitment from California real-estate developer John Arrillaga to ensure some of its medical students graduate without debt.
The gift from Arrillaga, who received financial aid while at Stanford, will be matched through other donations and school support to create $90 million in new scholarship funding over the next decade, the school said in a statement Wednesday. Students will qualify based on need.
Arrillaga, who's worth at least $2.5 billion according to the Bloomberg Billionaires Index, has donated considerable sums to his alma mater. His family's name appears on many buildings across the campus, including a recreation center, gym and dining hall.
Read more: How Arrillaga built his Silicon Valley wealth
U.S. medical schools are working to address the loan burden on their students, as the country faces a physician shortage. At Stanford, the median debt for those who borrowed among last year's graduating medical school students was $89,000.
Nationally the figures are higher. Among those who graduated in the class of 2019, 73% had education debt, and those who borrowed left with a median load of $200,000, and $215,000 at private schools, according to the Association of American Medical Colleges.
The median cost of attendance for four years for the class of 2020 is almost $340,000 at private medical schools, according to the association.
To contact the reporter on this story: Janet Lorin in New York at jlorin@bloomberg.net
To contact the editors responsible for this story: Sam Mamudi at smamudi@bloomberg.net, Pierre Paulden
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