By Harshit
WASHINGTON, NOV. 27 —
A growing coalition of nursing, public health, and allied health organizations is sharply criticizing a Trump administration proposal that would limit federal student loan access for many graduate students, warning that the change could deepen workforce shortages in critical fields and raise financial barriers for future clinicians.
The plan, part of President Donald Trump’s recently passed “Big Beautiful Bill,” would impose new federal loan caps beginning next July. While students in certain “professional programs” such as medicine, dentistry, law, veterinary medicine, and pharmacy could continue borrowing up to $50,000 per year and $200,000 total, students in many other graduate programs—including nursing, physical therapy, social work, dental hygiene, and occupational therapy—would face significantly lower limits of $20,500 per year and $100,000 total.
Health care leaders say that distinction is arbitrary, outdated, and harmful to a workforce already strained by shortages.
A Narrow Definition of ‘Professional’ Programs
The Education Department says it is using a definition from a 1965 federal student aid law to determine which degrees qualify as professional programs. That statute lists several fields but notes that the examples are not exhaustive. The Trump administration proposes the opposite approach, limiting the designation only to the programs it names explicitly.
Left out are several degree pathways that are required for state licensure, certification, or advanced clinical practice—including master’s-level nursing degrees such as Nurse Practitioner programs, Doctor of Physical Therapy programs, and graduate degrees in public health.
Leaders in these fields say the proposal ignores modern workforce realities.
One in six registered nurses holds a master’s degree, according to the American Association of Colleges of Nursing (AACN). Many advanced roles—including nurse anesthetists, nurse practitioners, and clinical nurse specialists—require graduate-level training that often exceeds $100,000 in tuition and fees.
“This proposal simply does not reflect how health care is structured today,” the AACN wrote in a statement during federal rulemaking sessions.
Administration Says Caps Will Lower Tuition Costs
The Trump administration defends the policy as a way to pressure universities to bring down tuition. Officials argue that unlimited federal borrowing allows schools to increase prices without consequence.
By setting clear limits, they say, schools charging higher-than-average tuition may be forced to reduce costs to attract students.
The Education Department also insists the overall impact will be minimal. It says 95% of nursing students are enrolled in programs that fall below the proposed $100,000 borrowing limit.
Students already enrolled would be grandfathered in under the current, higher lending rules.
Health Groups Warn of Workforce Damage
Health care organizations strongly disagree with the administration’s assessment. In joint letters to federal officials, professional groups argue that capping loans will deter qualified applicants from entering fields that require graduate degrees but typically offer lower salaries than medicine or dentistry.
They also note that many of the affected professions—including nursing, physical therapy, and social work—are overwhelmingly staffed by women and represent critical parts of the care delivery system.
According to U.S. Census Bureau data, women constitute roughly 75% of the full-time health workforce, and an even higher proportion in support and clinical care fields.
The AACN warns that stricter loan limits would “devastate” efforts to strengthen the nursing workforce and could worsen shortages that already threaten hospital capacity and patient safety nationwide.
Susan Pratt, a Toledo, Ohio nurse and union president, said the proposal feels like a dismissal of the sacrifices health workers made during the pandemic.
“It’s just a smack in the face,” Pratt said. “Nurses showed up every day during the pandemic, and now policies like this make it harder for future nurses to further their education.”
Higher Costs for Students, More Reliance on Private Loans
If finalized, the rule could push many students toward private loans, which carry higher interest rates and fewer protections than federal loans.
Graduate programs in nursing and therapy often exceed $100,000 in total cost, meaning students would have to bridge the gap with private financing—especially for high-cost programs in major metropolitan areas.
Schools warn that the policy could also reduce diversity in health professions, since students from disadvantaged backgrounds would struggle the most with tighter borrowing limits.
What Comes Next
The proposal is still being finalized following a federal rulemaking process. If adopted in its current form, the new loan caps would take effect in July of next year.
Health organizations say they will continue pushing the Education Department to revise the definition of professional programs and include clinical degree pathways that require graduate study for licensure.
Many also argue the proposal conflicts directly with the nation’s pressing goals: expanding the health workforce, improving access to care, and filling gaps in understaffed nursing and therapy specialties.
For now, uncertainty looms as students, universities, and workforce leaders wait to see whether the administration makes any adjustments before issuing the final rule.