Changing Loan Limits for Advance Practice Providers Save

The "One Big Beautiful Bill" (OBBB), or H.R. 1, was signed into law in July, calls for significant changes in the funding of healthcare education.  This bill that lowers cap limits on education loans applies to graduate (APRN, PA) programs. It was driven by the need to lower the US federal budget, the declining role of the Department of Education, and claims (backed by research) that unlimited loan access has exaggerated the tuition costs in the USA.

Summary of Annual and lifetime loan limits under the OBBBA

• Professional students (like PAs): $50,000 per year, with a $200,000 lifetime cap.
• Other graduate (APRN) students: $20,500 per year, with a $100,000 lifetime cap.
• Parent PLUS loans: Capped at an annual limit and a lifetime limit of $65,000 per child.
• Eligibility: PA students are expected to be classified as professional students, but final clarification from the Department of Education is pending.

Impact on Nurse Practitioner Programs

Notably graduate nursing programs have been reclassified in ways that significantly restrict student loan access. The Department of Education no longer recognizes graduate nursing degrees as "professional" programs, instead categorizing them as "graduate academic programs," which limits federal borrowing to $20,500 annually with a $100,000 lifetime cap. This categorical change is designed to curtail loan limits and is not meant to undermine nursing as a “profession”.

The Department of Education said it would no longer classify these credentials as professional degrees: education (including teaching master’s degrees), nursing (MSN, DNP), social work (MSW, DSW), public health (MPH, DrPH), physician assistant, occupational therapy, physical therapy, audiology, speech-language pathology and counseling and therapy degrees. The Department of Education said it expects to release final rules in spring 2026 at the latest.

For now, it appears the OBBB will affect those pursuing advanced practice nursing, including nurse practitioners (APRN), nurse anesthetists, nurse midwives, and clinical nurse specialists.  It will have no impact on undergraduate nursing programs, including four-year Bachelor of Science in nursing degrees and two-year associate’s degrees in nursing.  (80% of the nursing workforce do not have a graduate degree.)

Department of Education data indicates that 95% of nursing students borrow below the annual loan limit and therefore are not affected by the new caps. Yet, there are some who contend these new federal loan limits may force some APRN students to cover tuition by seeking higher-interest private loans or postpone their education entirely.

Impact on Physician Assistants

The American Academy of Physician Associates (AAPA) have protested that this legislation and the U.S. Department of Education’s definition of “professional program” might exclude physician associates (PAs) from eligibility for higher federal student loan limits. Thus, PAs would suffer the same severe limitations as APRNs.  At issue is what is the final regulatory definition of "professional student".  Initially PA programs were thought to meet the criteria, while nursing programs did not. The Department of Education is expected to issue further guidance.  In the bill "professional student" is defined as a student enrolled in a program that awards a professional degree, beyond a bachelor's degree, and professional licensure. While most doctoral degree programs will benefit from the higher cap amount, graduate programs (such as nursing, physical therapy, social work, and physician assistants) will only be eligible for the lower annual and aggregate loan limits.

Workforce Concerns

The new limits may create an educational funding gap, as the new lifetime limits may undercut the cost of a nurse practitioner or physician assistant education. The net result is that fewer individuals, and potential NPs, PAs, and medical students, may have their career interests diverted by this legislation.

The American Nurses Association and other nursing organizations have raised alarm about the policy's broader implications. In 2022, nursing schools reported over 2,100 full-time faculty vacancies, resulting in more than 80,000 qualified student applications being rejected. Restricting loan access may worsen the faculty shortage by discouraging nurses from pursuing the advanced degrees required to teach.

Exemptions: Students already enrolled in a program before June 30, 2026, may be grandfathered in and can continue to borrow under the old Grad PLUS program rules for a limited time