In a move that’s sending shockwaves through education and health care, the One Big Beautiful Bill Act (OBBBA), which was signed into law by U.S. President Donald Trump in July 2025, quietly changed how federal student loans work. Under the new bill, only programs classified as “professional” degrees by the revamped Department of Education (DOE) will qualify for the highest federal loans.
The catch? Graduate nursing programs, physician assistant (PA) degrees, and physical therapy programs no longer make the cut.
For students in those fields, the financial hit is immediate. Programs that previously qualified for high loan amounts will now face limits of $20,500 per year and a $100,000 lifetime borrowing cap, compared to the $50,000 per year and $200,000 lifetime cap available to degrees still classified as professional (like medicine, dentistry, or law). In short: Working toward becoming a nurse practitioner or physical therapist just got a lot more difficult to finance.
Why This Matters
According to health care experts, the change comes as the country already faces a looming nursing shortage. They warn that this new barrier will discourage prospective students from entering these fields, especially those from less privileged backgrounds. “[Physician assistants] and nurse practitioners are providing a lot of health care in this country,” Kim Litwack, Dean of the College of Health Professions & Sciences at the University of Wisconsin-Milwaukee, told Wisconsin Public Radio. “And if that financial aid goes away, I think we have some serious threats that are going to be facing primary care delivery and service delivery.”
Frontline nurses share this concern.
“One of the highest stress-causing issues about working as a nurse is being short-staffed, overworked, and burned out,” Megan Flaherty, a registered nurse (RN) specializing in the intensive care unit, told Cheapism. “Nurses are already experiencing this now. We already don’t have enough nurses at the bedside, and now with the professional status removed, new nurses will have a harder time joining the workforce because they won’t be able to get loans or loan replacement programs as easily.”
Flaherty, who’s been an RN for nearly a decade, says the field has only gone downhill. “Health care infrastructure will eventually collapse with an already struggling workforce further depleted,” she added.
Jennifer Aguirre, an RN based in Denver, Colorado, echoed these sentiments. “This decision is not only insulting, but will impact access to education and the future workforce as a whole,” she said.
Another nurse noted on Reddit, “Nurses will leave the bedside. If the sacrifice is not worth it anymore, then nurses will leave.”
The Financial Repercussions
Health care organizations argue the federal decision is counterintuitive, especially at a time when the country desperately needs more nurses. For those entering the profession post-July 2026 (when the new rules kick in), the effects are immediate:
- Higher reliance on private loans. With federal borrowing caps slashed, students will have no choice but to turn to private loans, which often carry higher interest rates and fewer protections like income-driven repayment, deferment options, or forgiveness programs.
- Reduced access to forgiveness programs. Many nurse loan-forgiveness programs hinge on federal loan eligibility. But with limits tightened, fewer students will now quality for the very programs meant to keep nurses in the workforce.
- Increased student debt burden for new grads. Students who planned to pursue advanced roles in medicine, such as nurse practitioner (NP), PA programs, or physical therapy degrees, now face a rude (financial) awakening. What was already a costly path has become even harder to afford.
- Potential tuition increases. Colleges and universities might respond by raising tuition even further to compensate for lost federal subsidies, making programs that were already expensive and competitive even less attainable for working-class students.
What Can Students Do Now?
While things look grim right now, there are still ways for nursing students to soften the financial blow, including:
- Confirm how the program’s classified. Ask your school whether your specific degree counts as a “professional” program under the new definition. Since schools are still interpreting the OBBBA requirements, some programs may end up reclassifying or adjusting their financial aid packages in the coming months.
- Explore scholarships and grants. With federal loan caps diminished, looking for alternative sources of funding can come in handy. Many hospitals, health systems, and nonprofit groups now offer education assistance or tuition reimbursement.
- Borrow only what you need. With restricted access to federal loans, private loans will fill the gap, but they typically come with higher rates and fewer protections. Only borrow what you absolutely need, read the fine print, and don’t let anyone rush you into signing anything you’re unsure of.
- Plan for early repayment. Because federal safeguards like income-driven repayment won’t cover as much debt, graduates may need to look for more aggressive repayment strategies to stay ahead of interest and reduce long-term costs.
- Stay updated. The law can still change. Advocacy groups are already pressuring the DOE to reverse or modify parts of the rule, so it’s worth keeping an eye on updates from both your program and the DOE. Setting up email alerts from official agencies can help you stay in the loop.
Final Thoughts
The reclassification of nursing and other health degrees under the OBBBA isn’t just a technical tidbit; it’s a major policy shift that carries real financial and workforce implications. For thousands of students, getting federal loans will become much harder, making an already demanding career even tougher.
At a time when nurses are more needed than ever, the message feels like a slap in the face, especially to the people who have spent years holding together an overstretched health care system. Unless the policy is amended, the U.S. risks creating yet another barrier in a system already strained by shortages, high turnover, and skyrocketing patient demand.
“This is a little bit horrifying,” said Litwack. “I would like to remain hopeful that it was an oversight, and not an intent.”
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