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Education Department Rules Nursing Is Not a Professional Degree, Tightening Graduate Loan Limits

Citing a decades-old definition plus committee consensus, the agency is preparing a proposed rule to govern loans starting July 1, 2026.

Overview

  • The Department of Education confirmed nursing will not be classified as a federal “professional degree,” changing how graduate nursing borrowers are treated under new loan rules.
  • Under the One Big Beautiful Bill, graduate students face caps of $20,500 per year and $100,000 lifetime, versus $50,000 per year and $200,000 lifetime for professional programs.
  • Grad PLUS loans will end for disbursements on or after July 1, 2026, removing a financing option many graduate students have used to cover remaining costs.
  • Nursing leaders, including the American Nurses Association, warn the reclassification could limit access to advanced degrees for nurse practitioners and other roles and worsen shortages in rural and underserved areas.
  • The Education Department says its stance aligns with a 1965 regulatory definition and a consensus from a committee that included higher-education institutions, with a proposed rule to be published for public comment.