The Department of Education’s Proposed Caps on Nursing Graduate Financial Aid: What Rehabilitation Nurses Need to Know

The Association of Rehabilitation Nurses (ARN), representing more than 5,400 rehabilitation nurses and more than 13,000 certified rehabilitation registered nurses that work to enhance the quality of life for those affected by physical disability and/or chronic illness, strongly opposes the Department of Education's proposed rule to exclude post-baccalaureate nursing from the higher graduate student loan caps available to disciplines such as physicians, lawyers, psychologists, and clergy. Should this rule become law, graduate nursing students' access to essential federal student loan programs will be greatly diminished.  

Background 

Under the Department of Education's (DOE) proposed framework, part of the One Big Beautiful Bill (OBBBRA), new caps will be instituted to limit eligibility for expanded amounts of federal graduate student loans. Specifically, loans for post-baccalaureate nursing students, as well as physical and occupational therapy students and physician assistants, will be limited to $20,500 annually and $100,000 total.Loans for professions such as physicians, lawyers, psychologists, and clergy will still be eligible to borrow double these amounts.

Recently, social media and various news outlets have claimed that the DOE has de-classified nursing as a "profession." In truth, nursing and many other disciplines were never specifically designated as professional or non-professional by the DOE. In practice, post-baccalaureate nurses were permitted to borrow up to the federal loan maximums guaranteed to disciplines that had specifically been designated as "professional" degree programs.

The DOE's proposed rule, therefore, does not de-classify nursing as a professional degree. It does, however, bring loan eligibility regulations into line with its existing definition of professional degree programs.

ARN's Position 

Nursing is an established and highly specialized discipline that requires rigorous academic preparation, extensive clinical training, and a deep commitment to public health and safety. Nurses are often the front-line providers of clinical care in settings across the entire continuum of care, including inpatient, outpatient, and community-based or in-home care. As nurses, we play a critical role in patient health and safety across the continuum of healthcare—particularly in rehabilitation, where nurses lead in restoring function, promoting independence, and improving patient outcomes.

Limiting loan access for current and future graduate nursing students will create unnecessary barriers to entering the profession at a time when the nation is experiencing persistent and well-documented nursing shortages. Colleges of nursing already are turning away students because of the lack of master's- and doctorly prepared nurses to teach them. Restricting nurses' ability to secure higher loan amounts, especially nurses from disadvantaged backgrounds who have few other resources for affording graduate education, will greatly compound the lack of nurse faculty to educate e students that want to enter this field, exacerbating the existing nursing shortage. Such actions will ultimately threaten the stability and quality of healthcare delivery nationwide.

The DOE will be opening a public comment period about the proposed rule change for loan eligibility early in 2026. During this time, ARN will be urging the DOE to reconsider its proposal and adopt a definition of professional degree programs that accurately reflects the essential educational and clinical competencies required for advanced nursing practice and the nurse faculty role, as well as the advanced education requirements for physical and occupational therapists and physician assistants.

Ensuring equitable access to federal student aid is not only vital for maintaining a strong rehabilitation workforce—it is fundamental to protecting the health and well-being of the patients and communities we serve. ARN stands ready to advocate for our nation's health and preserve access to quality rehabilitation services by working with the DOE to arrive at more equitable loan eligibility regulations.