What Do the Proposed Changes to Graduate Student Loan Limits Mean for Nursing?

What Do the Proposed Changes to Graduate Student Loan Limits Mean for Nursing?

Firstly, let’s clarify what the proposed policy is. It is a reduction to the amount that can be borrowed by a student pursuing a graduate degree when that student is using a public loan program. These loans are available through the Federal Government and include subsidised and unsubsidized as well as PLUS loans (taken out by parents of graduate students and available to cover up to the full cost of tuition). It does not directly affect undergraduate students, and it does not affect private student loans, though undergraduates will need to consider the full cost of their education when starting an undergraduate program. 

The proposal is that as of 2026, graduate students in what the Federal Government has labelled “non-professional” degree paths will only be allowed to borrow up to $20,500 per year, with a total aggregate limit of $100,000 (including undergraduate loans). For what the Federal Government designates as Professional Programs, the limits are up to $50,000 per year, with a total aggregate limit of $200,000. A new overall lifetime federal borrowing limit of $257,500 will apply to all federal student loans (excluding Parent PLUS loans). The specific definition of "professional programs" is awaiting final guidance from the Department of Education, and this is where the controversy started. The current list of Professional Degrees is: 

1. Pharmacy (Pharm. D.) 

2. Dentistry doctorate (D.D.S. or D.M.S.) 

3. Veterinary medicine (D.V.M.) 

4. Chiropractic (D.C. or D.C.M.) 

5. Law (L.L.B. or J.D.) 

6. Medicine (M.D.) 

7. Optometry (O.D.) 

8. Osteopathic medicine (D.O.) 

9. Podiatry (D.P.M., D.P., or Pod.D.) 

11. Theology (M.Div., or M.H.L.) 

12. Clinical psychology (Psy.D. or PhD.) 

Federal loans have certain benefits to the borrower that make paying for education more attainable. The interest is generally lower than a private loan, and you don’t need a credit check or cosigner for most loans. You also have more flexible repayment terms- including not owing payments until you graduate, and you may be eligible for flexible repayment plans and loan forgiveness programs depending on your income and work status. The new proposed government regulations will also include fewer deferment/forbearance options: Economic hardship and unemployment deferments will be phased out for new loans after July 1, 2027, and general forbearance periods will be shorter. 

The Nursing community is concerned about increasing the barriers to a graduate nursing degree: Many nurses need a doctoral degree now instead of a master's alone. In order to teach nursing, you also need a master’s or doctoral degree. The rise of the Doctor of Nursing Practice (DNP) is also lengthening the course of education for Nurses. Nurse leaders are more often pursuing DNP’s to improve patient care, system outcomes, and health policy by applying research and evidence-based practice in clinical settings. Being excluded from the list of “professional degrees” also incited a strong response from Nurses and other medical professionals, such as Physical Therapists, Occupational Therapists, Dental Hygienists, and non-medical professions such as Architects, Accountants and Teachers. Advanced Practice Nurses (APRNs), such as Nurse Practitioners, are on the frontlines of medical care for the US’s most underserved populations. According to AACN’s report on 2023-2024 Enrollment and Graduations in Baccalaureate and Graduate Programs in Nursing, U.S. nursing schools turned away 65,766 qualified applications (not applicants) from baccalaureate and graduate nursing programs in 2023 due to an insufficient number of faculty, clinical sites, classroom space, and clinical preceptors, as well as budget constraints. 

The US Department of Education claims that “placing a cap on loans will push the remaining graduate nursing programs to reduce their program costs, ensuring that nurses will not be saddled with unmanageable student loan debt”. These changes will at, the least, put a short-term strain on an already strained medical system of which nurses are the backbone. Universities do not set tuition rates in a vacuum. Tuition and fees include the cost of faculty, clinical placements, facilities and labs, course materials, and real estate in the school location. None of these things are going to drop in cost automatically for Schools of Nursing to adjust their costs to government-imposed student loan limits. Nursing is a professional degree with a value that should be supported, not hindered, by the Federal Government.