A group of 10 nursing organizations have filed a lawsuit against the Department of Education over its recent changes to student loan limits. The dispute centers on a federal rule that changed how nursing degrees are classified. Nursing organizations argue the change could limit access to certain student loan programs and increase barriers for future nurses.
Challenges to the Department of Education’s final ruling that excludes nursing under the professional degree classification are increasing. In the most recent update, 10 nursing organizations have filed a lawsuit opposing the new federal student loan limits, which have drawn attention across higher education and healthcare.
Which organizations are involved?
The groups participating in the lawsuit include:
- American Nurses Association (ANA)
- American Association of Nurse Anesthesiology (AANA)
- Association of Women’s Health, Obstetric, and Neonatal Nurses (AWHONN)
- American College of Nurse Midwives (ACNM)
- American Holistic Nurses Association (AHNA)
- Association of Pediatric Hematology/Oncology Nurses (APHON)
- Chi Eta Phi Sorority, Inc.
- The Health Ministries Association (HMA)
- National Association of Clinical Nurse Specialists (NACNS)
- National Association of Nurse Practitioners in Women’s Health (NPWH)
Why nursing organizations filed the lawsuit
The lawsuit, filed by organizations representing nurses and nursing students, argues that the new borrowing restrictions could create significant barriers for students pursuing advanced nursing education. The policy, which is scheduled to take effect July 1, 2026, imposes new limitations on federal student loans for graduate and professional degree programs:
- Professional degree: $50,000 annually and a lifetime cap of $200,000
- Graduate degree: $20,500 annually and a lifetime cap of $100,000
This nursing organization lawsuit is separate from a legal challenge filed by a coalition of states that are also seeking to block portions of the new federal student loan regulations. While the cases raise different legal arguments, both challenge aspects of the implementation of the new borrowing limits and could influence how the policy is ultimately applied.
As more challenges emerge, the question remains:
What happens if fewer nurses can afford to pursue advanced education?
The answer extends far beyond student loan balances. The profession’s workforce challenges are deeply interconnected. Changes affecting graduate nursing education can ripple through healthcare systems, academic institutions, and patient care settings.
How the rule could affect nursing students, schools, and the workforce
Unlike many other professions, nursing relies heavily on educational advancement to address workforce needs.
Registered nurses (RNs) often return to school to become nurse practitioners, nurse anesthetists, nurse midwives, nurse educators, clinical nurse specialists, and healthcare executives. Many of these pathways require master’s or doctoral degrees that can cost tens of thousands of dollars, with some programs exceeding six figures in total educational expenses.
At the same time, healthcare systems continue to face shortages of advanced practice nurses, nursing faculty, and clinical leaders. Demand for highly educated nurses is expected to grow as the U.S. population ages, chronic disease rates increase, and access-to-care challenges persist in many communities.
For that reason, some nursing organizations argue that the exclusion of nursing from the professional degree classification may restrict access to graduate education financing, creating potential consequences in and outside of the classroom.
1. Fewer nurses may pursue advanced practice roles
One of the most immediate concerns is the possibility that some RNs could delay or abandon plans to pursue graduate education altogether.
Many nurses return to school after gaining years of clinical experience. They’re often balancing employment, family responsibilities, rent/mortgages, and other financial obligations while pursuing advanced degrees.
If federal borrowing options become more limited, some prospective students may determine that graduate education is no longer financially feasible. For example, fewer students entering certified registered nurse anesthetist (CRNA) programs could further tighten an anesthesia workforce that plays a vital role in ensuring access to care.
“The decision also ignores strong data showing CRNAs and APRNs deliver one of the best returns on investment for federal loans, with high employment rates, strong workforce demand, and low debt-to-income ratios,” said Molter in the press release.
2. The nursing faculty shortage could worsen
Another potential risk involves nursing education itself.
Across the country, nursing schools continue to report faculty vacancies and difficulties recruiting qualified educators. The American Association of Colleges of Nursing (AACN) reports that faculty retirements, more competitive compensation in non-faculty positions, and other factors have contributed to the ongoing faculty shortage.
Additionally, in many cases, schools turn away qualified applicants not because of a lack of student interest, but because there aren’t enough faculty members to teach them. In 2024, nursing schools turned away over 80,000 qualified nursing student applications, according to the AACN.
Most nurse educators hold graduate or doctoral degrees. If fewer nurses pursue advanced education, the pipeline of future faculty members could shrink further.
The result could create a troubling cycle: Fewer graduate students lead to fewer future faculty members. Fewer faculty members lead to reduced nursing school capacity. Reduced capacity limits the number of nurses entering the workforce.
3. Rural and underserved communities could feel the impact first
Healthcare workforce shortages are rarely distributed evenly.
Rural communities and medically underserved areas often face the greatest challenges in recruiting providers, including advanced practice nurses. According to the National Rural Health Association, only 9% of U.S. physicians practice in rural areas. In addition, nonmetro areas are projected to have a higher shortage of RNs than metro areas in each of the three interval years, according to the Human Resources and Services Administration’s Nursing Workforce Projections:
- 11% versus 2% in 2038
- 18% versus 4% in 2033
- 24% versus 5% in 2028
Many nurse practitioners, nurse midwives, and other advanced practice nurses help fill critical gaps in areas where physician shortages exist. If barriers to graduate education reduce the number of nurses entering these roles, underserved communities could experience the effects disproportionately.
4. Employer-sponsored education models may become more important
Healthcare employers have increasingly invested in tuition assistance, loan repayment programs, and academic partnerships as workforce recruitment tools. According to the Nurse.com 2024 Nurse Salary and Work-Life Report, 58% of RNs shared they received tuition reimbursement from their employers.
If graduate students face greater borrowing limitations, health systems may find themselves under increased pressure to help bridge the financial gap. Some organizations may expand tuition reimbursement benefits or develop stronger partnerships with nursing schools to support workforce development.
While such programs can create valuable opportunities, they may also shift more educational financing responsibility from federal programs to employers. That transition could create new disparities depending on where nurses work and what educational benefits their organizations offer.
Looking ahead
At the center of the debate is whether advanced nursing education should be recognized as a professional degree for federal student loan purposes. While the courts will ultimately determine the outcome of the legal challenges surrounding this policy change, the issue has already prompted a broader discussion about the future of nursing education and workforce planning.
The debate extends past student loan eligibility alone. As healthcare systems continue to face provider shortages, nursing faculty vacancies, and increasing patient care demands, many nursing leaders are questioning whether current education financing policies adequately support the nation’s long-term healthcare workforce needs.
Frequently asked questions around nursing’s professional degree reclassification
- Why are nursing organizations suing over the new student loan limits?
Ten nursing organizations argue that the new federal borrowing restrictions could create financial barriers for nurses seeking advanced degrees, potentially restricting the nursing workforce and patient access to care. - What is the professional degree classification, and how is nursing classified?
A professional degree classification determines whether a graduate program is recognized as a professional degree program for federal student aid and student loan purposes. Currently, most nursing graduate programs are classified as standard graduate degree programs rather than professional degree programs. As a result, nursing students are subject to lower federal student loan borrowing limits than students enrolled in programs that receive a professional degree designation. - How could the policy affect advanced practice nursing roles?
If graduate education becomes less affordable, some nurses may delay or forgo pursuing careers as nurse practitioners, certified registered nurse anesthetists (CRNAs), nurse midwives, clinical nurse specialists, and other advanced practice providers. - Could the student loan changes worsen the nursing shortage?
Potentially. Nursing organizations warn that fewer nurses pursuing graduate education could lead to fewer faculty members, reduced nursing school capacity, and a smaller pipeline of healthcare providers entering the workforce. - When do the new federal student loan limits take effect?
The new federal student loan limits are currently scheduled to take effect on July 1, 2026, although ongoing legal challenges could affect implementation.
This article was originally published on the Nurse.com blog and is republished here with permission.
