Nursing Is No Longer Treated as a Professional Degree: What the New Federal Rules Mean for Students and the Future of Healthcare

The nursing profession is facing one of its most disruptive policy shifts in decades. A recent federal ruling under the U.S. Department of Education—introduced through the Trump administration’s sweeping legislative package—formally states that nursing does not qualify as a professional degree under federal financial-aid standards.

This is more than a bureaucratic reclassification. It changes how nursing students fund their education, how much they can borrow, and what financial pathways are available for advanced nursing careers. With the country already battling a massive nurse shortage, this update has sparked intense debate across universities, hospitals, and professional nursing associations.

This long-form article breaks down what changed, why the government made this decision, and how it may reshape nursing education for years to come.

Understanding the Policy Change

For years, nursing students—especially those pursuing advanced degrees like MSN, NP, DNP, CRNA, or CNS—used federal professional-degree loan programs to cover high tuition costs. These programs offered higher borrowing limits and broader financial support through Grad PLUS loans.

The new federal ruling changes that landscape completely.

What the Law Says

The Department of Education confirmed that:

• Nursing was never included in the original federal list of professional degree programs created in 1965.

• The updated definition simply “clarifies” long-standing policy.

• Nursing programs must now follow graduate-degree loan caps, not professional-degree rules.

Borrowing Limits Under the New Rules

The law introduces two major caps:

• Graduate student lifetime cap: $100,000

• Professional student lifetime cap: $200,000

Because nursing is no longer counted as “professional,” students lose access to the higher cap.

Beginning July 1, 2026, another major change takes effect:

Grad PLUS loans will be eliminated.

These loans previously helped nursing students pay for the large gap between tuition costs and limited federal aid. Without them, students may have to rely on private lenders with higher interest rates and stricter approval requirements.

Why Nursing Was Excluded: A Look Back at the 1965 Definition

The confusion around nursing’s classification goes back more than half a century.

In 1965, the federal government created a regulatory definition of “professional degree.” This list included:

• Medicine

• Dentistry

• Pharmacy

• Optometry

• Veterinary medicine

• Law

• Theology

• Chiropractic

• Osteopathic medicine

• Clinical psychology

• Podiatry

The regulation noted the definition was “not limited to” these examples, which is why universities commonly assumed nursing fit the category. For decades, financial-aid departments interpreted it that way.

But the Department of Education now says the omission was intentional. According to spokesperson Ellen Keast, the agency is simply “aligning with historical precedent.”

This reinterpretation dramatically reshapes how nursing programs are treated today.

How Much Does Nursing School Actually Cost?

The cost of nursing education varies depending on the degree level and the type of institution. Here is a quick breakdown:

Entry-Level Programs

• CNA certification: $600 – $2,000

• ADN (Associate Degree in Nursing): $3,000 – $17,000 per year

Undergraduate Level

• BSN (Bachelor of Science in Nursing): $6,000 – $60,000+ per year

Graduate & Advanced Practice

• MSN (Master of Science in Nursing): $12,000 – $100,000+

• DNP (Doctor of Nursing Practice): $30,000 – $140,000

• CRNA (Nurse Anesthetist programs): often exceed $150,000

Most nursing students borrow heavily to complete these programs—especially at the MSN and DNP levels.

With Grad PLUS loans disappearing, the financial gap widens significantly.

Why Nursing Leaders Are Sounding the Alarm

The healthcare system is already strained. The U.S. is experiencing:

• A historic shortage of registered nurses

• A shortage of nurse educators

• A shortage of advanced practice nurses

• Massive burnout and high turnover rates

• A rapidly aging population requiring more care

Nursing programs are struggling to keep up with demand, and many hospitals depend on nurses with advanced degrees to fill essential clinical and leadership roles.

ANA’s Response

Jennifer Mensik Kennedy, president of the American Nurses Association, expressed deep concern:

“Limiting nurses’ access to funding for graduate education threatens the very foundation of patient care.”

Her argument is clear: restricting financial pathways discourages students from entering or advancing in the field.

How Many Students Will Feel the Impact?

Based on current national enrollment data:

• 260,000+ students are in entry-level BSN programs

• 42,000+ students are in ADN programs

• Tens of thousands more are in MSN, DNP, NP, PA, and CRNA tracks

Every one of these students will feel the effects if they plan to pursue graduate education or advanced practice roles.

Who Still Qualifies for Professional-Degree Loans?

The following programs continue to count as professional degrees:

• Medicine

• Dentistry

• Pharmacy

• Law

• Veterinary medicine

• Optometry

• Clinical psychology

• Chiropractic

• Osteopathic medicine

• Podiatry

• Theology

Programs that are now explicitly excluded include:

• Nursing

• Nurse practitioner programs

• Physician assistant programs

• Physical therapy

• Audiology

This reclassification creates a divide between medical professions that receive federal priority and those—like nursing—that do not.

The Real-World Impact: What Happens Next?

1. Increased Reliance on Private Loans

With federal borrowing limited, many nursing students will need:

• Private lenders

• Co-signers

• Higher-interest loans

• Larger personal loans or savings

This creates major barriers for students from lower-income backgrounds.

2. Possible Decline in Advanced Nursing Enrollment

Programs like NP, CRNA, and DNP are costly. Reduced loan access may lower applications, worsening shortages in specialty nursing roles.

3. Pressure on Hospitals and Healthcare Systems

Fewer advanced-practice nurses means:

• Longer patient wait times

• Higher stress on medical teams

• Slower response in critical-care units

• Reduced access to specialized services

4. A Ripple Effect Across Every State

Shortages in one area—primary care, emergency services, anesthesia, pediatrics—impact entire health systems.

Is There Any Chance the Rule Could Change?

Healthcare organizations are expected to:

• Challenge the decision

• Lobby Congress

• Advocate for reinstating nursing as a professional degree

• Push for loan programs designed specifically for nursing students

Universities may also seek alternative funding strategies, including scholarships, fellowships, and employer-sponsored tuition support.

But unless federal policy changes, the current classification stands.

Final Thoughts

Nursing is at the heart of the U.S. healthcare system. Nurses deliver frontline care, coordinate treatment, educate patients, and hold hospitals together during crises. Reclassifying nursing as a non-professional degree may reshape the future of the workforce—and not in a way that supports patient needs.

As Grad PLUS loans disappear and borrowing caps tighten, students entering nursing will face bigger financial hurdles. For a profession already under immense strain, this shift raises serious questions about how the healthcare system will meet the growing demand.

References:

 

https://www.statesman.com/news/article/nursing-no-longer-professional-degree-21198671.php

https://nurse.org/news/nursing-excluded-as-professional-degree-dept-of-ed/

 

 

Faqs

 

Why is nursing no longer considered a professional degree?
The U.S. Department of Education updated its definition of a “professional degree” and confirmed that nursing was never included under the original 1965 classification. As a result, nursing programs now fall under the same standard graduate-level rules as other professional degree programs. This change affects federal student loan limits, reduces lifetime borrowing caps for nursing students, and eliminates access to Grad PLUS loans starting July 1, 2026.

How does this change affect nursing students?
Nursing students will face lower borrowing limits—$100,000 lifetime instead of $200,000—and will lose access to federal Grad PLUS loans. This could increase reliance on private loans, raise out-of-pocket expenses, and make it harder to pursue advanced nursing degrees during a nationwide nurse shortage.

Which degrees are still considered professional?
Medicine, dentistry, pharmacy, veterinary medicine, optometry, law, clinical psychology, chiropractic, osteopathic medicine, podiatry, and theology remain classified as professional programs.