A recent decision by the U.S. Department of Education is raising concerns among higher education institutions as well as tens of thousands of graduate level nursing students.
What Changed?
As part of the One Big Beautiful Bill Act, the Department of Education created a new borrowing tier for certain ‘professional degrees’ including medicine, dentistry, pharmacy, law, veterinary medicine, and optometry.
Students pursuing advanced degrees in these fields can borrow up to $50,000 annually in federal loans—more than double the amount available to other graduate students.
However, a number of graduate healthcare programs didn’t make the cut. Those seeking careers as nurse practitioners, physician assistants and physical therapists (among others) will need to account for lower federal borrowing limits.
The Real-World Impact on Graduate Nursing Students
As of July 1, 2026, first year graduate nursing students will be restricted to the same federal borrowing limits as most master’s and academic doctoral programs: $20,500 per year with an aggregate lifetime cap of $100,000. As a result, many, particularly first-year full-time students with clinical hours, may lack sufficient funding for tuition and living costs.
This is especially significant given that nurse practitioners, physician assistants, and physical therapists provide essential care across communities, often serving as primary providers in rural and underserved areas.
What Nursing Organizations Are Saying
The American Association of Colleges of Nursing points out that graduate nursing programs require state licensure and lead directly to practice: the very same criteria the Department of Education uses to define “professional” programs.
Both the American Nurses Association and the American Association of Colleges of Nursing are urging the Department of Education to reconsider the decision. Central to their argument is its potential impact on the healthcare workforce.
According to recent AACN data, 267,889 students are currently enrolled in Bachelor of Science in Nursing programs at 869 colleges and universities across the U.S. Those planning to pursue advanced degrees to become nurse practitioners, clinical nurse specialists, or nurse anesthetists may think twice if they can’t get enough federal financing.
Jennifer Mensik Kennedy, President of the American Nurses Association, stated that limiting access to funding for graduate nursing education at a time when healthcare faces a historic nurse shortage could affect the foundation of patient care, particularly in rural and underserved communities where advanced practice nurses often serve as primary healthcare providers.
What You Can Do Right Now
If you’re planning to pursue a graduate nursing degree, there are steps you can take to keep your goal on track.
Understand your full financing picture. Work with your school’s financial aid office to get a very clear picture of what exactly your degree will cost as well as all the options for financing it. In addition to federal loans, ask about scholarships, grants, and employer tuition assistance programs.
Private loans can fill the gap. Once you’ve done all the math, you may still come up short. A private student loan may cover the remaining costs. Look for lenders that offer flexible repayment options, extended grace periods, and benefits that meet the unique needs of graduate students in healthcare fields. Abe Healthcare Professional loans are specifically designed for nursing, pharmacy, and allied health students, with options to cover up to 100% of school-certified costs and built-in repayment flexibility such as extended deferment and forbearance options.
Don’t give up your dream.
Make your school’s financial aid office your first call. They will be your greatest champion as well as an invaluable source of information and guidance. With their help, your dream career will still be yours for the taking — even if advanced nursing programs do lose their ‘professional degree’ status.