The recent update by the U.S. Department of Education (ED) to reclassify nursing outside of the definition of the “professional degree” loan category has sent a shockwave through the nursing community.
This new change will carry certain implications for how nursing education is funded and how some students navigate their academic and career paths.
From the perspective of someone who has spent over 17 years in nursing, these policies can shift the landscape for both practicing nurses and those just starting out. Here’s what nursing students should know to help them navigate these changes.
What is a “professional degree”?
Under longstanding federal regulation (34 CFR 668.2), a “professional degree” is described as one that “signifies both completion of the academic requirements for beginning practice in a given profession and a level of professional skill beyond that normally required for a bachelor’s degree.”
In other words, these degrees typically require comprehensive education, specialized training, and a high level of accountability, often tied directly to licensure or certification. Think medicine, dentistry, law, or pharmacy, programs where graduating means you’re stepping directly into a licensed, regulated profession that requires advanced, practice-ready skills.
Many graduate-level nursing programs, such as Doctor of Nursing Practice (DNP) or Master of Science in Nursing (MSN) programs, were previously understood to meet that same threshold. After all, they prepare nurses for advanced clinical roles that require critical thinking, decision-making, and autonomous practice.
Nursing education, particularly at the graduate level, checks every box:
- It builds on the foundations of a bachelor’s degree program.
- It prepares you for professional, often independent, practice.
- It is tied directly to licensure and certification.
- It carries real-world responsibility, prescribing and managing care across populations and acuity levels.
What does this change mean?
The ED’s recent decision to reclassify nursing from its definition of a “professional degree” may seem like a technicality, but the downstream effects are serious, especially for students.
Under this reclassification, graduate nursing programs are no longer eligible for the higher federal student loan limits that are reserved for “professional-degree” students. However, this change doesn’t apply to undergraduate nursing degrees like the Bachelor of Science in Nursing or an Associate Degree in Nursing.
In practical terms, this means that a nurse pursuing an advanced degree may now face federal borrowing caps that fall under the “graduate” tier set at $20,500 per year and an aggregate (lifetime) limit of $100,000, versus the “professional” tier with an annual limit of $50,000 and an aggregate limit of $200,000.
This is a significant change from the previous limits that allowed borrowing $40,000 or more annually through programs like Grad PLUS. As a result, nursing students may need to turn to private loans with higher interest rates, work additional hours while in school, or reconsider the cost-benefit ratio of pursuing an advanced degree.
From a systems perspective, it could also worsen the nursing shortage. If fewer nurses can afford graduate education, there will be fewer nurse practitioners, fewer educators to teach the next generation, and fewer leaders prepared to guide the future of care delivery. And ultimately, that affects not just the profession, but the patients and communities we serve.
However, it’s important to note that in a recent press release, the ED provided further clarification that this reclassification pertains strictly to how loans are categorized, not to how the federal government views the nursing profession itself.
Why it matters for nursing students
As someone who’s been a bedside nurse, I can tell you the nursing pipeline is complex — the rising cost of education, the need to advance into leadership or advanced practice, and the workforce shortage all converge. So, when this kind of reclassification happens, here’s what it means:
- Financial burden may increase. If your program isn’t classified under the “professional” category, your borrowing capacity may shrink. That means you might need to rely more on private loans (which often have higher interest rates), scholarships, or work‑while‑you‑study.
- Access to advanced roles may shrink. Because many advanced nursing roles (NPs, clinical nurse specialists, and nurse educators) require graduate education, if fewer students can afford those programs or if programs shrink due to funding/hurdles, the pipeline for advanced practice nurses and nurse leaders may constrict.
- Student planning must adjust. If you’re currently in or are considering entering a graduate nursing program, this shift means you should plan your finances, program choice, and career path with more intentionality.
What nursing students need to know and how to find solutions
Change can feel disruptive, especially in healthcare, but it’s often a sign that something deeper needs our attention. Instead of seeing this shift as a setback, consider it a signal to pause, reassess, and refocus.
While these recent changes don’t affect undergraduate student aid, here’s what students at all levels can look out for — and how you can move forward.
For those early in nursing school
- Understand your loan options: what federal loans you’re eligible for, and what the caps will be (both now and projected).
- Budget with the assumption that your borrowing ability may be more constrained than anticipated.
- Explore scholarship opportunities, employer tuition assistance, and loan forgiveness programs (including those unrelated to the “professional degree” label).
- Choose a program strategically, considering elements like cost, reputation, graduation/NCLEX pass rates, and support services.
- Build your network early, connect with nurse mentors, and engage in the nursing community. (I know from personal experience how powerful peer support is.)
For those planning graduate nursing education or who are currently enrolled
- Verify whether your program will be classified under the new rule as “professional” or “non‑professional” for federal loan purposes. Contact your financial aid office and ask about expected borrowing limits.
- Consider the total cost of the program, including tuition, fees, clinical/ practicum costs, and living expenses. If borrowing is capped, you may need to plan alternative funding.
- Explore alternative funding, such as veterans' benefits, employer subsidies, state nursing loan repayment programs, or even private scholarships (especially for nursing leadership, under‑represented groups, or rural health).
- Think about return on investment. Advanced practice roles can command higher pay, but if you accrue significant debt, especially through private loans, your investment may shift.
- Consider part-time or hybrid programs, working while studying, employer sponsorship, fellowships, or community‑based roles that pay as you learn.
For all nursing students
- Recognize that rules like these are fluid. Stay informed. Participate in nursing student organizations, professional associations, and advocacy groups, helping preserve access and protect the nursing pipeline.
- Consider diversifying your skill set, such as leadership, informatics, quality/safety, community health, and telehealth. These may open roles beyond traditional direct patient care that offer flexibility and funding options.
- Develop a financial literacy plan, ensuring you understand debt management, budgeting for tuition, understanding loan forgiveness programs, your credit health, and more.
Looking toward the future
As you embark on or continue your nursing education journey, think of this as a call to empowerment. The fact that nursing is reclassified from a federal “professional degree” definition is a signal that we must be even more deliberate about our education pathways, funding strategies, career planning, networking, and advocacy.
Our roles, technologies, and even the settings have changed. What has remained constant is that nursing matters deeply. And now more than ever, students and future nurses need to be equipped — not just clinically, but fiscally and strategically.
Recap
The U.S. Department of Education has recently changed the definition of a “professional degree,” and graduate-level nursing programs no longer fall under that category. Prior to this change, this professional classification allowed nursing graduate students to access higher federal loan limits, but under the new rules they are now restricted to standard graduate-student borrowing limits. As a result, students pursuing advanced nursing degrees such as MSNs or DNPs may face greater financial strain and may need to rely more heavily on private loans, scholarships, employer tuition assistance, or working while enrolled. This change could have broader implications for the nursing workforce, potentially reducing the number of advanced practice nurses, educators, and nursing leaders at a time when staffing shortages are already high. Students are encouraged to carefully review their financial aid options, plan budgets conservatively, and stay informed as policy developments continue. This change does not affect the accreditation, legitimacy, or licensure pathways of nursing programs, and does not apply to undergraduate nursing education.
