Here is the core of it. The department no longer classifies nursing as a "professional degree," the designation that determines how much federal funding graduate students can borrow. For students starting graduate nursing programs on or after July 1, 2026, federal borrowing is capped at $20,500 per year and $100,000 total. Fields that keep professional-degree status can borrow up to $50,000 a year and $200,000 total (Brookings; U.S. Department of Education).
Created by the One Big Beautiful Bill Act and overseen by the department's Reimagining and Improving Student Education (RISE) Committee, the rule reserves the higher cap for these fields:
- Pharmacy
- Dentistry
- Veterinary medicine
- Chiropractics
- Law
- Medicine
- Optometry
- Osteopathic medicine
- Podiatry
- Theology
- Clinical psychology
Nursing was dropped, along with physician assistants, physical therapists, audiologists, accountants, educators, and social workers.
The department defends the change. In a November statement, it accused "certain progressive voices" of fear-mongering and said its data shows 95% of nursing students already borrow below the annual limit and so are unaffected by the new caps.
Critics counter that the students who are affected are exactly the ones the system can least afford to lose. Advanced practice training routinely exceeds $100,000, and a master's in a health-related field cost about $30,000 a year in 2019-2020 according to the National Center for Education Statistics, well above the $20,500 annual limit the rule allows.
"Americans should be very concerned about the impact of this proposal on patient care," said Jennifer Mensik Kennedy, PhD, MBA, RN, NEA-BC, FAAN, president of the American Nurses Association. "Advanced practice nurses, including nurse practitioners, certified registered nurse anesthesiologists, clinical nurse specialists, and certified nurse-midwives are board-certified and highly educated. In many communities, they provide access to patient care that would otherwise be unavailable."
The change hits hardest in places already short on nurses. "We are in a serious nursing and physician shortage that is forecasted to increase," said Karen O'Donnell Fountain, an ER nurse and director of clinical services for Ingenovis Health. "Advanced practice nurses are a key role in primary care settings and underserved areas of the country. Limiting educational resources is not serving the American people."
Pushback From Nurses and Lawmakers
The opposition is bipartisan. A letter signed by 140 lawmakers, including 12 Republicans, urged the department to reconsider. It cited the 2024 National Nursing Workforce Study, which found more than 138,000 nurses have left the workforce since 2022, with stress and burnout, workload, understaffing, inadequate salary, and workplace violence among the top reasons. The same study found that by 2029, nearly 40% of nurses intend to leave the workforce (NCSBN).
"The RISE Committee's proposed definition will make it more difficult for nurses to join the health care workforce because post-baccalaureate nursing degrees are excluded from the list of health care degrees in the definition of a 'professional degree,'" the letter stated.
The fight has since moved to the courts. In May 2026, a coalition of states sued to block the loan limits on nursing and other healthcare degrees, so the rule's future is not settled.
What Nurses Can Do Now
Some observers expect schools to cut costs to offset the caps and keep producing nurses. Vicki Huber, RN, MSN, chief nursing officer at Atlas Mobility, is skeptical.
"That's a good idea, but it's probably not realistic," Huber said. "Nursing programs are very expensive to run, requiring specialized equipment, clinical placements, expert faculty, and the resources to maintain accreditation standards that ensure patient safety."
Her advice is to stop relying on federal loans as the only plan. "Be strategic and research all available funding options: scholarships, loan forgiveness programs for underserved areas, employer partnerships, and service commitment programs," she said. "I've mentored countless nurses who've built remarkable careers using these pathways."
Frequently Asked Questions
What changed for graduate nursing students?
Under a U.S. Department of Education rule tied to the One Big Beautiful Bill Act, nursing is no longer classified as a "professional degree." For students starting graduate nursing programs on or after July 1, 2026, federal borrowing is capped at $20,500 per year and $100,000 total, instead of the $50,000 per year and $200,000 total still allowed for professional degrees.
Which degrees kept professional-degree status?
Pharmacy, dentistry, veterinary medicine, chiropractics, law, medicine, optometry, osteopathic medicine, podiatry, theology, and clinical psychology. Nursing was dropped, along with physician assistants, physical therapists, audiologists, accountants, educators, and social workers.
When does the rule take effect?
July 1, 2026. It applies to students who start graduate programs on or after that date.
How many nurses could this affect?
The Department of Education says its data shows about 95% of nursing students already borrow below the new annual limit. Critics argue the affected minority are concentrated in advanced practice training, which routinely exceeds $100,000, exactly the roles that fill primary-care and rural gaps.
Why does this matter during a nursing shortage?
The 2024 National Nursing Workforce Study found more than 138,000 nurses left the workforce since 2022, and nearly 40% intend to leave by 2029. Advanced practice nurses help cover primary care in underserved areas, so limiting how they finance training narrows an already strained pipeline.
Is the rule final?
Not settled. In May 2026, a coalition of states sued to block the loan limits on nursing and other healthcare degrees, so the rule faces a court challenge.
What can nursing students do now?
Stop treating federal loans as the only plan. Research scholarships, loan-forgiveness programs for underserved areas, employer partnerships, and service-commitment programs, and build a funding mix rather than relying on a single source.