The U.S. Dept. of Education is targeting the elimination of Grad Plus loans for higher education degrees that are not categorized as “professional,” endangering the ability of graduate nursing students to access federal loan limits once available to them.

“The Department concluded its negotiated rulemaking session, where the Reimagining and Improving Student Education [RISE] Committee reached consensus on the entire package of federal student loan-related changes advanced by the One Big Beautiful Bill Act [OBBBA],” the department said, in referring to President Trump’s legislation signed into law in July.

“Under President Trump’s OBBBA, the department’s rulemaking will eliminate the Grad PLUS program, which has fueled unsustainable student loan borrowing, cap Parent PLUS Loans, sunset the confusing maze of student loan repayment plans created by the Obama and Biden administrations and create a new and simplified Repayment Assistance Plan,” the department said.

Industry sources said for the long-term care profession sorely in need of nurses, the heart of the matter is whether nursing is classified as professional, which it will not be under these department changes. The expectation is there will be further rulemaking on the matter and allowance for comment and further discussion and advocacy.

The OBBBA did not include the classifications in statute. The law does include the various loan limits based on degree type, but not necessarily which degrees would be classified as graduate or professional. 

What Is Professional?

According to the Education Dept., the degrees that follow are professional: Chiropractic (DC or DCM); Clinical psychology (PhD or PsyD); Dentistry (DDS or DMD); Law (LLB or JD); Medicine (MD); Pharmacy (PharmD); Podiatry (DPM, DP or PodD); Optometry (OD); Osteopathic medicine (DO); Theology (MDiv or MH); and, Veterinary medicine (DVM).

Nursing did not make the list.

The department also said that starting July 1, 2026, annual loans for new borrowers will be capped at $20,500 for graduate students (with a $100,000 aggregate limit) and $50,000 for professional students (with a $200,000 aggregate limit).

Workforce Needs Nurses

In reaction, Dana Ritchie, associate vice president of workforce and constituency services for the American Health Care Association/National Center for Assisted Living, called the news a “missed opportunity.”

“At a time when our country desperately needs more nurses, this is a missed opportunity. Nurses are the beating heart of long-term care, and advanced practice nurses, like nurse practitioners, are helping to revolutionize our sector,” she said.

Ritchie said the association’s Caregivers for Tomorrow initiative specifically calls for incentive programs to build the next generation of caregivers, including loan forgiveness programs. “We hope to work with policymakers on advancing these workforce development efforts,” she added. 

Questions or comments? Contact Patrick Connole at pconnole@parkplacelive.com.