What Nursing Degree Reclassification Means for Colleges and Universities Zelda Meeker 5 min read | December 10, 2025 A revised federal definition of “professional degrees” will affect how graduate nursing students finance their education, with broader implications for nursing schools and the healthcare workforce. The U.S. Department of Education (ED) released a revised definition of what classifies as a “professional degree” for the purposes of federal student aid under Title IV. Under this updated regulatory framework, many graduate‑level nursing degrees, such as a Master of Science in Nursing (MSN) and other advanced nursing tracks, are no longer classified under the definition of “professional degrees.” For educational institutions that house nursing programs, this nursing degree reclassification may have implications. Tuition funding, program demand, enrollment strategies, and long‑term workforce pipelines could all be affected. What changed under the “professional degree” definition? The change stems from the implementation of provisions under the Higher Education Act. Under the new rules, the pool of degrees categorized as “professional” has been narrowed. Fields such as medicine, dentistry, law, and pharmacy remain under the definition. Nursing, along with several other fields (physical therapy, occupational therapy, physician’s assistant, and more), has been reclassified. Under the updated regulations, students enrolled in programs classified as “professional degrees” are eligible for higher unsubsidized loan limits through the Direct Loan Program, which allows up to $50,000 annually and a $200,000 lifetime (aggregate) cap. With nursing no longer explicitly included in the “professional” category, graduate nursing students are now likely to fall under the standard graduate borrowing limits, capped at $20,500 per year with a $100,000 lifetime maximum. In addition to federal borrowing caps, these regulatory changes include the elimination of some previous loan programs for graduate students, like the Grad PLUS program. According to the Association of American Universities, many nursing students have historically relied on this type of funding to cover education-related expenses not met by other forms of financial aid. The nursing degree reclassification is administrative and pertains only to how graduate nursing programs are treated for federal borrowing limits. In a recent press release, the ED clarified that the ruling reflects a decision about federal loan eligibility, not a statement about the value or societal importance of nursing as a profession. Why this matters for schools and nursing programs As funding becomes more limited, nursing programs and their institutions may face challenges in maintaining enrollment, supporting students financially, and ensuring long-term program sustainability. These shifts can affect institutional operations and may have broader consequences for the nursing workforce pipeline and healthcare delivery. The American Association of Colleges of Nursing (AACN) voiced strong concern over the these proposed changes, warning that limiting access to federal student loan programs for graduate nursing students could have serious consequences for the nursing workforce, emphasizing in their official statement that such policy shifts risk undermining efforts to prepare the next generation of nurse leaders, educators, and advanced clinicians. Funding and student affordability Graduate nursing students who previously may have qualified for the higher loan caps reserved for “professional” programs may face stricter borrowing limits under the new loan regime. For some prospective students, especially those facing high tuition costs, balancing work/family, or coming from lower-income backgrounds, reduced access to federal student loans could make advanced nursing education unaffordable. This could lead to declines in applications, enrollment, or completion rates. Institutions may find themselves forced to either reduce tuition, increase institutional aid, promote alternative financing (e.g., scholarships, private loans), or adjust payment plans to support students. Impact on program viability and institutional planning A drop in graduate‑level nursing enrollment can affect program viability, especially for costly or specialized degrees (e.g., Doctor of Nursing Practice or nurse educator programs). For universities and colleges that rely on graduate nursing programs for revenue or workforce development pipelines (e.g., preparing future faculty, nurse educators, advanced practitioners), the financial pressure on students could disrupt institutional planning and long-term capacity growth. Institutions may need to re-evaluate marketing, recruitment, and support strategies for nursing grad programs, anticipating potential demand shifts or emphasizing alternative value propositions. This post also has ideas and options for nursing programs to consider to make life easier for their students and maintain enrollment if this change goes into effect. Effects on the workforce pipeline and healthcare capacity Graduate nursing programs are crucial for producing advanced practice nurses, nurse educators, nurse leaders, and researchers — roles that support clinical care, education, and public health capacity. With fewer nurses able to finance advanced education, institutions may struggle to meet demand for qualified faculty and clinicians. A contraction in advanced nursing training capacity could exacerbate the existing nursing shortage, especially in underserved areas, which may also affect institutions’ community‑health partnerships, clinical placement agreements, and graduate outcomes. “At a time when healthcare in our country faces a historic nurse shortage and rising demands, limiting nurses’ access to funding for graduate education threatens the very foundation of patient care,” said Jennifer Mensik Kennedy, PhD, MBA, RN, NEA-BC, FAAN, President of the American Nurses Association (ANA) in a recent ANA news release. “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,” she added. “We urge the Department of Education to recognize nursing as the essential profession it is and ensure access to loan programs that make advanced nursing education possible.” What the shift doesn’t change that should still be highlighted The nursing degree reclassification doesn’t impact licensure, accreditation, or the legitimacy of graduate nursing degrees. Programs accredited by recognized bodies (e.g., Commission on Collegiate Nursing Education) remain valid, and graduates are still eligible for licensure via national or state boards. This change is solely about funding — not clinical scope, regulatory requirements, or professional standards. In addition, undergraduate nursing degrees, such as a Bachelor’s of Science in Nursing (BSN), are unaffected because the changes target post-baccalaureate graduate programs. Because of ongoing discussions around this topic, institutions may wish to emphasize to students, faculty, and other stakeholders that nursing remains a highly respected and essential profession, and that the change relates strictly to the mechanics of federal loan classifications. In addition to those discussions, institutions should begin thinking ahead and preparing for this change, should it go into effect. Nursing degree reclassification and considerations for the future Given the shifting landscape, colleges, universities, and other institutions may consider these strategies moving forward: Revising financial aid strategies. Increasing institutional scholarships, grants, or subsidies for graduate nursing students can help compensate for reduced federal loan access. Exploring alternative funding and support models, including partnerships with healthcare employers, hospitals, community health organizations, and public health agencies to offer tuition reimbursement, work‑study, or loan‑forgiveness in exchange for service commitments. According to the Association of American Medical Colleges, pipeline programs can also be a resource to support students, especially underrepresented populations. Adjusting recruitment and retention messaging, emphasizing program value, career prospects, return on investment, and long-term demand for advanced nursing roles. Advocacy and policy engagement. Collaborating with professional organizations (e.g., the ANA, the AACN, and more) to advocate for restoring favorable loan classification or alternative support mechanisms for graduate nursing education. Reassessing program costs and structure, considering whether to redesign curricula or adapt student cohort sizes to maintain financial viability. What to watch for next The reclassification of nursing becomes effective July 1, 2026. This means that leaders and other stakeholders should monitor enrollment trends for graduate nursing programs over the next few admission cycles. Declines in applications or enrollment may signal the need for proactive institutional adjustments. As part of negotiated rulemaking sessions, federal education officials are reexamining the definitions of programs of study and how legacy policies apply. So, collaboration with professional nursing organizations, advocacy bodies, accreditation agencies, and funding stakeholders will be increasingly important, especially to protect program viability and ensure access to advanced nursing education. Why institutions should care beyond student recruitment For universities and colleges, the nursing degree reclassification represents a structural shift that could reshape the pipeline of future nurse educators, clinical leaders, and advanced practice nurses, thereby affecting an institution’s capacity to deliver quality education, meet accreditation standards, sustain clinical partnerships, and contribute to national healthcare needs. With the U.S. already facing a growing demand for nurses and for advanced practice professionals, educational institutions that proactively adapt may safeguard their nursing programs to sustain both enrollment and quality.