How Excluding Nursing from Professional Degree Program Loan Eligibility Will Impact Nurses and Patients

The Department of Education's ruling will heavily impact the future of the nursing workforce, says this nurse leader. 

The U.S. Department of Education ruled to exclude nursing from the definition of "professional degree" programs under new federal loan eligibility policy changes.

Once this policy is implemented, those pursuing nursing degrees will face stricter loan caps due to the One Big Beautiful Bill Act (OBBBA). According to the Department of Education, the OBBBA caps annual loans for new borrowers at $20,500 for graduate students with a $100,000 aggregate limit, and $50,000 for professional students with a $200,000 aggregate limit, beginning in July next year.

To clarify the decision, the Department of Education released a Myth vs. Fact sheet, which claims that Department data indicates that 95% of nursing students borrow below the annual loan limit, so a majority of nursing students would not be impacted by the caps. The sheet does not provide a cited source for that figure.

According to the American Association of Colleges of Nursing (AACN), total enrollment is 267,889 students for entry-level BSN programs, and 136,656 students in the Master's-level nursing programs. PhD nursing programs have seen a decline in enrollment, and in 2024, 42,767 students were enrolled in DNP programs.

Scope of impact

These policy changes will have a massive impact on the healthcare system, from a personal to a systemic level.  

"We know that if this policy goes into place, [it] would certainly hamper aspiring nurses' ability to enter the profession worsening the faculty shortage and also negatively impact nurses' ability to matriculate," said Katie Boston-Leary, senior vice president of equity and engagement at the American Nurses Association and HealthLeaders Exchange member. "Even if they decide to, because of their own personal career well-being, or interest, the other option would be to go into debt with personal loans."

The policy would impact nurses trying to advance their degrees to increase their salaries.

"Restricting access to student loans further entrenches inequality, dividing our nation into the haves and have-nots," said Wendy Wright, nurse practitioner and owner of Wright & Associates Family Healthcare. "As someone who grew up in a family who lived just above the poverty level, student loans were essential for me to pursue college and graduate education. Without them, I would not be the professional I am today, caring for and serving this community."

Boston-Leary pointed out the faculty shortage in nursing schools, and how those interested in teaching nurses must also have degrees to do so.

"It will crimp the pipeline and pathway on both ends  for nurses to enter programs even more so than it already is, which is already a problem where we turn away 60 to 80,000 nurses a year," Boston-Leary said.

These new policy changes could also further marginalize communities that already struggle to break through socioeconomic barriers to entry. If the policy stands, students might have to decide if they need to drop out of their nursing programs next year, Boston-Leary explained. 

"Financial pressures and stress impacts overall well being which could delay or deny nurses' aspirations to advance their degrees, which could be the difference between filling huge gaps that exist with nursing faculty, ambulatory and primary care, particularly within underserved and rural communities," Boston-Leary said. "There are a number of individuals that are ready, willing and able to be difference makers and we need better policy making to create opportunities and access to these programs." 

According to the American Community Survey conducted in 2022, 23% of Black women in the labor force are employed in the healthcare sector, and of that group, 37% of Black women work in the long-term-care sector and 42% work as LPNs or in other aide occupations.

"There's evidence that shows that healthcare is top employer of most Black women and yet, they are mostly in lower paid non-leadership positions in healthcare," Boston-Leary said, "and policies like this keep these data points in place."

What CNOs need to know

For CNOs who want to understand the impact of this ruling, the first step is to block out the noise, according to Boston-Leary. Leaders should put their focus on the financial and socioeconomic implications of the ruling.

"[CNOs] should also engage their teams to be plugged into the right sources of information and advocate," Boston-Leary said.

Nurse leaders can stay up to date on the implementation of this policy at RNaction.org.

"We need to continue the drum beat, but make sure we're saying the right things and focus on the right things and not get distracted," Boston-Leary said.

These policy changes will also impact patients. Less-accessible nursing education will mean less nurses entering the workforce, which would contribute to the nursing shortage and further gaps in patient care.

"People tend to forget that nurses and their families are givers and receivers of care, therefore, we have a vested interest given how these policies will impact us and our families on a professional and personal level," Boston-Leary said. "This is about who will care  with us, who will care for us, our families and communities now and even after we reach the end of our nursing careers."