Major Shake-Up for Nursing Education: Degree Financing Hit By Proposed Federal Loan Cap

A sweeping federal proposal to cap student loan debt for nursing degrees has sparked intense backlash across the American healthcare community, with educators and nursing organisations warning that the rule could deepen the country's already critical nurse shortage.

Under a new classification framework from the US Department of Education, nursing would no longer qualify as a 'professional degree', a change that would sharply restrict how much students can borrow.

Advocates say the plan jeopardises access to graduate nursing programmes at a time when hospitals, clinics and rural communities are desperately trying to recruit and retain qualified staff.

Federal Proposal Would Dramatically Limit Nursing Student Loans

The Department of Education's draft rule would redefine which programmes count as professional degrees, excluding nursing from the category alongside medicine, dentistry and law. As a result, nursing students pursuing graduate degrees would lose access to higher-limit federal Grad PLUS loans.

According to early reports, the plan would cap borrowing at $20,500 (£15,700) per year in unsubsidised loans, with a lifetime limit of $100,000 (£76,500) including undergraduate borrowing.

Outlets such as Nurse.org note that this is a sharp reduction from earlier drafts, which allowed up to $150,000 (£114,750).

Without Grad PLUS loans, aspiring advanced practice registered nurses (APRNs) — including nurse practitioners, certified nurse anaesthetists and clinical nurse specialists — would face tuition costs far exceeding federal loan limits. Many would be forced to take out private loans at higher interest rates.

Nursing Organisations Warn of 'Severe Consequences'

The American Nurses Association (ANA) has condemned the rule, arguing that excluding nursing from professional degree status undermines national healthcare priorities. In a statement, ANA President Jennifer Mensik Kennedy warned that the proposed loan cap threatens the very foundation of patient care at a time when the nation faces a historic shortage.

'Nurses make up the largest segment of the healthcare workforce and the backbone of our nation's health system,' Kennedy said. She emphasised that APRNs often provide essential services in rural and underserved communities where physicians are in short supply. Restricting access to advanced training, she argued, would worsen health disparities and diminish workforce readiness.

Advanced Nursing Roles at Risk Under New Limits

Graduate-level nursing programmes routinely exceed the proposed borrowing thresholds, leaving many students unable to finance their education without costly private loans.

Educators warn that this barrier will disproportionately affect candidates from lower-income backgrounds, reducing diversity within the profession and limiting opportunities for career advancement.

The concern comes at a time when the US healthcare system is grappling with unprecedented staffing shortages.

The Bureau of Labour Statistics projects that more than 275,000 nurses will be needed annually over the next decade — a target critics say is impossible without robust investment in education.

Could the Loan Cap Worsen the Nursing Shortage?

Analysts caution that limiting financial access will discourage enrolment in advanced nursing programmes, making it harder for hospitals and community health systems to meet demand. Many warn that the rule could delay efforts to expand the APRN workforce, which is increasingly relied upon to deliver primary and specialised care.

High burnout rates, pandemic-driven retirement surges, and an ageing workforce have already strained the system. Advocates say that restricting loan access now could push nursing education into crisis.

Calls Grow for Federal Reconsideration

Nursing leaders are urging the Department of Education to reverse course, insisting that nursing must remain classified as a professional degree to preserve full loan eligibility. The ANA has called for immediate dialogue with policymakers, stressing that equitable access to funding is vital for healthcare stability.

The proposal is still under review, and heavy lobbying is expected before the rule is finalised. For aspiring nurses, the uncertainty surrounding loan access adds yet another hurdle to entering the profession.