You dont understand that under your scenario, no one in their right mind would take on 250k in debt to be what is essentially a govt employee.
Here in Ireland the government pays for most of the university places based on a merit system (how you do in your highschool final exams), so med students generally qualify with little or no debt. (Same thing in most European countries).
So we get the best students, and it doesn't cost the taxpayer much (about $10,000 per student per year), because the taxpayer uses it's monopsony position (single payer) to keep college costs down. We also don't have the crazy malpractice insurance scenario which is raising costs for American healthcare consumers and lining the pockets of superfluous non-contributory non-productive tollbooth insurance companies.
So that's how we solve the problem... more big government.
Watch Michael Moore's "Sicko" for a nice example of this: he talks to British NHS doctors who seem to be doing quite well.
The Luke