In 2025, the U.S. Department of Education published a proposed rule that defined “professional student” and “graduate student” for the purposes of federal student loan limits.
Under the proposal, students who are defined as “professional students” are enrolled in designated professional degree programs, such as medicine, law, dentistry, pharmacy, clinical psychology, and theology. Students under this designation would be eligible for higher federal loan caps: $50,000 per year and up to $200,000 in a lifetime.
All other graduate students, including many healthcare-related professions under current classifications, would be eligible for $20,500 per year and up to $100,000 in a lifetime for federal loans.
While these changes are set to take effect on July 1, 2026, the rule was published as a Notice of Proposed Rulemaking, meaning it’s not final and there is a public comment period before adoption.
Where nursing fits into the proposed definition
Under the Department’s draft definition, advanced nursing programs are excluded from which professional degree programs are eligible for the higher loan limits. Instead, nursing programs would be classified as graduate degrees with the lower loan caps, regardless of licensure requirements, advanced clinical training, or workforce need.
This is consistent with how the Department’s negotiated rulemaking process (the RISE committee) reached consensus: the 11 designated categories didn’t include nursing, physical therapy, social work, physician assistants, or other allied health fields.
The Department has responded to some concerns with clarifications that the proposed rule seeks to align with long-standing definitions of professional degrees in regulations.
Why this matters for nursing students
The professional-degree designation is specifically about how it affects federal student loan eligibility and borrowing limits, and not how the federal government views the nursing profession.
Under these changes, a nursing student pursuing a master’s or doctoral path could be subject to $100,000 aggregate (lifetime) loan limits, while students in designated professional fields could borrow up to $200,000 aggregate.
Nursing graduate programs like the Doctor of Nursing Practice (DNP) and specialized advanced clinical tracks, often have tuition and fees that exceed these loan caps. According to data from the National Postsecondary Student Aid Study, the average amount of financial aid received by graduate students was $25,300 per student in the 2019-2020 academic year.
That means nursing students may need to:
- Rely more heavily on private loans or other financing
- Carry higher out-of-pocket costs
- Delay or reconsider advanced education tracks
These financial barriers could influence career decisions, especially for students from low-income or underrepresented backgrounds.
Reactions from nursing and healthcare associations
Since the proposal was issued, a range of nursing and healthcare advocacy voices have weighed in.
The American Nurses Association (ANA) has publicly stated its concern that nursing is excluded from the professional degree definition, noting the impact it could have on funding access for graduate nursing education.
“Excluding nursing from the professional degree category has the potential to put patient care at risk, especially in areas where nurses are the only healthcare providers in their communities. We urge the Department to correct this proposal and explicitly include nursing as a professional degree before the rule is finalized,” said Jennifer Mensik Kennedy, PhD, MBA, RN, NEA-BC, FAAN, President of the ANA, in a follow-up ANA news release.
While focused more broadly on workforce implications, the American Hospital Association (AHA) urged the Department of Education to adopt a broader definition that includes nursing, physician assistants, physical therapy, social work, and other health professions.
What happens next in the rulemaking process?
Because the Education Department has published a proposed rule, the next steps include:
- A public comment period, which will last for 30 days, ending March 2, 2026, at midnight.
- The Department reviews comments and may revise the language.
- A final rule is published and, if not legally challenged, takes effect.
The agency notes it hasn’t prejudged the final outcome and could revise the definition based on feedback.
Individuals interested in adding a public comment on this proposed rule during this period can submit it here.
Final thoughts on the nursing professional degree reclassification
Although this rulemaking focuses on federal student loan caps, its ripple effects could extend well beyond financing mechanics. Tighter borrowing limits may influence graduate nursing enrollment patterns, particularly in programs that rely heavily on loan access.
Over time, this could exacerbate workforce shortages in specialized nursing roles that require advanced degrees and create additional barriers for aspiring nurse leaders.
At the same time, these changes underscore a larger conversation about how student debt policy intersects with access to essential professions. How these rules are implemented and whether complementary supports are introduced will play a critical role in determining whether nursing education remains accessible, while still addressing concerns about long-term student debt.
