HOUSTON – A federal proposal to sharply limit how much graduate nursing students can borrow is raising alarm among students, educators and nursing groups say the change could worsen an already critical nursing shortage.
Under guidance the U.S. Department of Education released as it implements provisions of the One Big Beautiful Bill Act, new borrowing caps for graduate students would take effect July 1, 2026. Graduate borrowers who are not enrolled in programs the department designates as “professional” would be limited to $20,500 per year and $100,000 in lifetime borrowing; a smaller set of degrees classed as professional would be allowed higher caps — $50,000 per year and $200,000 lifetime. The Education Department’s negotiated-rulemaking summary lays out the caps and the July 2026 start date.
The policy also phases out the Grad PLUS loan for new borrowers — a program many graduate students have used to cover the full cost of attendance — reducing the amount of federal aid available for expensive programs. Critics say that combination could leave students without affordable financing options.
At Texas Medical Center clinic sites and classrooms, nursing students said the proposed limits would leave substantial gaps between what federal aid would cover and the true cost of many programs.
“$500 for one book… for one book — and sometimes another professor has another book that they prefer, so that’s another $150,” said Asia Haywood, a nursing student.
“It’s kind of disheartening… this money is going back into our community. We’re nursing students, so in the future we will be helping our community,” said Faizah Dixon, another student. Both said the lower caps could force students to pause or abandon plans for advanced training.
Julius Murray, a nurse practitioner and instructor, said many students “depend on that. That’s a very vital source of financing to even complete that degree plan.” He added the caps risk shrinking the pipeline of advanced-practice nurses and could worsen access to care for vulnerable populations. Those concerns mirror objections raised by national nursing organizations.
The department says the changes aim to curb over-borrowing and rein in rising graduate-program costs. Officials argue the new definitions are consistent with existing regulatory text used to determine which degrees qualify for the higher “professional” borrowing tier. But nursing groups and some university leaders say excluding nursing from the professional list misunderstands modern nursing practice, which increasingly requires graduate education for advanced clinical roles and faculty positions.
Some elements of the rule include grandfathering language: students with loans disbursed before July 1, 2026, may remain under the prior rules, depending on timing and institutional certification — a detail that could matter for students already enrolled or who have accepted financial aid for the 2025–26 academic year.
If finalized, the combination of caps and the end of Grad PLUS could push some students toward higher-interest private loans, stretch family resources, or deter prospective students — outcomes advocates warn will ultimately reduce the supply of advanced nurses at a time hospitals say they most need them.
The Education Department is accepting public comment and the rule remains subject to federal review before it is finalized.