As part of the Trump administration’s “Big Beautiful Bill,” the Department of Education plans to overhaul the federal loan system, and this could spell trouble for certain groups of students.
As BestColleges reports, the Education Department (ED) has proposed a plan that would narrow the definition of professional degree programs, which could significantly restrict access to federal aid for certain graduate students (1).
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With this plan, the higher borrowing limits that are tied to professional study will only be available to those studying in a few specific fields, which include law, medicine and dentistry, among others. This means students of every other graduate program could be subject to lower loan limits.
While there are many graduate programs that could be affected by this rule change, those studying for high-demand careers in social work, nursing, physical therapy and physician assistance are notable omissions from the new definition of professional study.
With the new rules, students in what the ED considers “professional programs” would be able to borrow $50,000 per year and up to $200,000 in total. Meanwhile, other graduate students would be capped at borrowing $20,500 per year and up to $100,000 in total (2). Though the plan is still being finalized, these new student loan limits are set to take effect on July 1, 2026.
For nursing students, this rule change is a “smack in the face,” said Susan Pratt, a nurse who also serves as the president of an Ohio union that represents nurses. “When we were during the pandemic, the nurses showed up, and this is the thanks we get.”
Come next July, this financial hurdle could make it more challenging for nurses to obtain their necessary credentials, which could potentially exacerbate the ongoing nursing shortage throughout the U.S.
The fallout of limiting loans for nursing students
Beyond the impact on nursing students in general, these new loan limits could disproportionately affect women pursuing careers in the health care industry.
Since women make up 88% of nurses throughout the country (3), the limits on borrowing could make it much harder for aspiring female nurses to get their credentials, while leaving students who are studying in male-dominated graduate programs a lot less restricted.
With the health care industry already facing a nursing shortage — and the Bureau of Labor Statistics predicting there will be more than 193,000 nursing openings annually through 2032 (4) — some are concerned the restrictions on nursing students borrowing will break the health care system under the weight of an aging population that requires an increasing amount of medical care.
“At a time when health care in our country faces a historic nurse shortage and rising demands, limiting nurses’s access to funding for graduate education threatens the very foundation of patient care,” the American Nurses Association wrote in a press release (1).
“In many communities across the country, particularly in rural and underserved areas, advanced practice registered nurses ensure access to essential, high-quality care that would otherwise be unavailable.”
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How this could affect health care costs
While the ED claims 95% of nursing students won’t be affected by this rule change, arguing that most programs cost under $100,000 (2), this statement ignores those graduate students who have existing undergraduate debt.
A student can borrow money for both undergraduate and graduate programs, with both applying to the total amount they can borrow from the federal government. This means a student’s loan total can be split between their undergraduate and graduate studies.
Students who enter their graduate studies without federal loans from undergrad might be able to make the numbers work, but since the average federal student loan debt is $39,075 (5), there’s a decent chance many nursing students will not be able to fund the cost of their entire graduate program under these new limits.
With this in mind, the ED’s plan could lead to a major lack of qualified nurses in the near future. For a health care system that’s already dealing with a nursing shortage, this shrinking supply of qualified nurses could force labor costs to rise. And like most businesses, health care facilities are likely to pass those higher costs on to patients through higher prices and rising insurance premiums.
How nursing students can work around the new loan limits
For aspiring nurses, one way around these new loan limits is to enroll in your graduate program before July 1, 2026, when the new student loan rules will kick in. Students who have already begun their graduate program before next July will be allowed to borrow under the previous limit (6).
But if enrolling before next July isn’t an option for you, start by mapping out your borrowing expectations. Add up your undergrad federal student loan debt with the amount you’d need to borrow for grad school. If the projected debt totals more than $100,000, you’ll need to find a way to fund the gap or seek out a more affordable program.
One option is to switch to a public school with a masters of nursing program, as these schools generally offer significantly more affordable tuition. If you can’t make that switch, or if the costs still exceed the new borrowing limit, do some research and look for scholarships and grants that could help with funding your schooling.
For students who can balance a job with their schooling, that’s another option to fund the gap. And, of course, you can always turn to private student loans, but make sure to consider the higher interest rates and lack of borrower protections before committing to this option.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
BestColleges (1); Associated Press (2); Magnet ABA (3); American Association of Colleges of Nursing (4); Education Data Initiative (5); National Association of Student Financial Aid administrators (6)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.