Graduate Nursing Programs Lose Professional Degree Standing Under New Rules

The U.S. Department of Education has removed nursing from its updated definition of “professional degree” programs, a shift that affects how students in graduate nursing programs access federal financial aid. The change is part of the rollout of the One Big Beautiful Bill Act, which restructures federal borrowing options for undergraduate, graduate, and professional students. Nursing schools, educators, and student groups are assessing how this adjustment may influence enrollment, affordability, and long-term career planning in the field.

Reclassification Limits Access to Graduate-Level Funding

Under the new system, the federal government caps undergraduate loans and discontinues the GRAD PLUS loan program. It also introduces a new Repayment Assistance Plan, allowing only students in designated “professional” fields to borrow up to $50,000 each year.

The Department of Education now lists medicine, dentistry, pharmacy, optometry, law, veterinary medicine, osteopathic medicine, podiatry, chiropractic, theology, and clinical psychology as professional programs. Nursing— including nurse practitioner tracks— is not included. Physician assistant and physical therapy programs are also excluded.

As a result, students in graduate nursing programs will no longer qualify for the higher loan limits traditionally available to students in professional programs. They will also lose access to certain loan forgiveness pathways tied to that designation. For many, this may increase the cost of pursuing advanced nursing credentials, which often require multiple years of graduate study.

Impact on Students and Academic Pathways

Educators say the change could make advanced nursing education more difficult to access, particularly for students who rely heavily on federal aid. Graduate nursing tuition is already significant, and many students work while enrolled, often balancing clinical practice with coursework. Reduced borrowing capacity may influence decisions about starting or completing graduate nursing programs.

Nursing leaders also note that all advanced practice roles originate from RN preparation. Because many students earn their RN before deciding to pursue higher degrees, limited funding could discourage them from continuing their education. This may be especially challenging for students from rural areas, underrepresented groups, or households with limited financial resources.

Academic Organizations Respond

Major nursing education organizations, including the American Association of Colleges of Nursing and the American Nurses Association, have expressed concern about how the reclassification may affect the future nursing workforce. These groups highlight that graduate nursing programs require rigorous coursework, clinical training, and licensure— characteristics typically associated with professional disciplines. They also emphasize the importance of advanced practice nurses in providing accessible healthcare, especially in underserved regions.

Both organizations are urging continued dialogue with federal officials and encouraging institutions to help students understand the evolving aid landscape.

Ongoing Questions About Workforce Implications

The nursing field continues to experience high demand, with many regions reporting ongoing shortages. More than 267,000 students were enrolled in Bachelor of Science in Nursing programs in 2024, forming the pipeline for future clinical and advanced practice roles. Educators are monitoring whether tighter financial aid limits will affect enrollment in graduate nursing programs.

Some workforce researchers note that opportunities for career advancement— such as progressing from RN to BSN and then to advanced practice roles— play a major part in retaining nurses. If graduate pathways become more difficult to pursue, it may affect long-term workforce development, especially in communities already facing limited access to healthcare providers.

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