Degree Reclassification: What Nurse Educators Can Do Cara Lunsford, RN 6 min read | December 15, 2025 Starting July 1, 2026, the U.S. Department of Education (ED) will reclassify advanced nursing degrees outside the definition of the “professional” loan category, a change that has sent a shockwave through the nursing community and has nurse educators preparing next steps. The plan has certain implications for how nursing education is funded and how some students navigate their academic and career paths. Here’s what universities, colleges, and training programs should know to help 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 criteria. 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 students 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 nursing degree reclassification 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 nursing degree reclassification 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. What nursing degree reclassification means for access to care According to a 2024 Health Resources and Services Administration report, roughly 22% of Americans live in what are considered Health Professional Shortage Areas (HPSAs) — about 67% of which are rural. Meanwhile, that report predicted a shortfall of 87,150 full-time equivalent primary physicians nationwide by 2037. NPs and PAs may be essential to help alleviate that problem, especially in those HPSAs. While not completely making up for the physician shortfall, that report estimated a surplus of 66,360 full-time equivalent NPs and 460 full-time equivalent PAs in 2037. Of course, with this prospective change, it would make sense to be skeptical of those projections. Less funding may lead to fewer applicants, students, and graduates (especially from lower-income homes) applying for advanced degrees, which would widen that predicted shortfall. Universities and other nurse training institutions should begin to proactively plan for these changes to maintain enrollment numbers, revenue, and program quality as well as ensuring that as many people who need primary care can receive it. Why reclassification matters for nursing students As someone who’s been a bedside nurse, I can tell you that 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, students’ borrowing capacity may shrink. That means students 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. Students currently in or who are considering entering a graduate nursing program should plan finances, program choice, and career path with more intentionality. This post provides more information about the potential implications of this change for educational institutions and some possible next steps they can take. What reclassification means for nurse educators 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 this reclassification won’t affect undergraduate student aid, here’s what students at all levels can look out for — and some considerations to attract and assist your students across all educational levels. How can nurse educators/programs help undergraduate students? Help students understand their loan options and what federal loans they’re eligible for and what the caps will be, both current and projected. Provide students with scholarship opportunities and resources, encourage them to look into employer tuition assistance, and consolidate information about loan forgiveness programs (including those unrelated to the “professional degree” label). Ensure your program is strategically important for students by considering elements like cost, reputation, graduation/NCLEX pass rates, and support services. Help students build their networks early by collaborating with nurse mentorship groups and encouraging students to engage in the nursing community. I know from personal experience how powerful peer support is. How can nurse educators help graduate students? Verify whether your programs will be classified under the new rule as “professional” or “non‑professional” for federal loan purposes and about any expected borrowing limits. Make this information available to any relevant offices or staff to pass on to students. Have alternative funding information available like veterans’ benefits, employer subsidies, state nursing loan repayment programs, or even private scholarships especially for nursing leadership, under‑represented groups, or rural health. These are all sources of funding that institutions should ensure students know about. Connect students with part-time or hybrid programs, such as fellowships or community‑based roles that pay students they learn. How can nurse educators help students? Recognize that rules like these are fluid. Encourage participation in nursing student organizations, professional associations, and advocacy groups to help preserve access to and protect the nursing pipeline. Consider diversifying courses or investing in extracurricular training programs to help students build skills 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. Make financial literacy resources available to all students to ensure they understand debt management, budgeting for tuition, loan forgiveness programs, credit health, savings, and more. Offer online or hybrid courses for appropriate topics to help students reduce travel costs, maintain work-life balance, and prevent burnout. Looking toward the future As you help students embark on or continue their 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. Reclassification 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.