Trump Admin Moves to Cap Graduate Loans by Narrowing ‘Professional Degree’ Definitions. Here’s What That Means for Students
Credit: Kevin Carter / Getty Images News- The Department of Education is redefining what qualifies as a “professional degree,” potentially leaving out professions like nursing and physical therapy from higher borrowing limits.
- The new borrowing limits and repayment plans are expected to take effect on July 1, 2026.
- Students affected by the loan changes can still apply for private loans, work-study, and private scholarships and fellowships.
As part of a sweeping overhaul of the federal student loan system, the Trump administration’s Department of Education (ED) has proposed narrowing the definition of “professional degree programs,” a move that could significantly restrict graduate students’ access to federal aid.
Under the proposal, only select fields such as medicine, law, and dentistry would explicitly retain the higher borrowing limits tied to professional study. All other graduate programs, including those required for high-demand careers in nursing, social work, and physician assistants, could be subject to lower loan caps, while Grad PLUS loans will be eliminated entirely. This change would begin affecting new borrowers in July 2026.
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The new limits were included in Trump’s signature One Big Beautiful Bill (OBBB), but ED crafted the specifics through negotiated rulemaking, a formal process the department uses to write federal student aid regulations.
ED announced on November 6 that its negotiated rulemaking committee, which included financial aid administrators, student advocates, and other stakeholders, reached consensus on regulatory language to implement the OBBB’s loan provisions.
“The consensus language agreed upon by the negotiators today will help drive a sea change in higher education by holding universities accountable for outcomes and putting significant downward pressure on the cost of tuition,” said Under Secretary of Education Nicholas Kent in a press release. “This will benefit borrowers who will no longer be pushed into insurmountable debt to finance degrees that do not pay off.”
The American Nurses Association (ANA) wrote a public statement on November 10, expressing concern about the new professional degree definitions and urging ED to explicitly include nursing in its definition, as this will severely restrict loan access for graduate nursing education.
“At a time when healthcare in our country faces a historic nurse shortage and rising demands, limiting nurses’ access to funding for graduate education threatens the very foundation of patient care,” ANA said.
“In many communities across the country, particularly in rural and underserved areas, advanced practice registered nurses ensure access to essential, high-quality care that would otherwise be unavailable.”
The American Enterprise Institute, however, praised the new definitions, saying they protect graduate degrees with lower salary outcomes from higher loan caps.
“Students in high-salary but expensive fields like medicine may need more borrowing capacity to pay their tuition,” Senior Fellow Preston Cooper wrote. “But extending high loan limits to all programs means students in lower-wage fields like education and social work could wind up with debt they can’t afford.”
Currently, the GRAD Plus Loan program allows students to borrow up to their full cost of attendance. However, under the new OBBB laws, professional students can borrow up to $50,000 per year or incur a maximum lifetime debt of $200,000. Graduate students will be able to borrow up to $20,500 per year, or incur a maximum lifetime debt of $100,000.
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Which Programs Will be Considered “Professional Degrees?”
ED cited 11 degrees that qualify as “professional,” according to the National Association of Student Financial Aid Administrators:
- Pharmacy (Pharm.D.)
- Dentistry (DDS or D.M.D.)
- Veterinary Medicine (D.V.M.)
- Chiropractic (DC or D.C.M.)
- Law (JD or LLB)
- Medicine (MD)
- Optometry (OD)
- Osteopathic Medicine (DO)
- Podiatry (D.P.M., DP, or Pod.D.)
- Theology (M.Div. or M.H.L.)
- Clinical Psychology (including a Psy.D. or Ph.D.)
Any programs that share the same four-digit Classification of Instructional Programs (CIP) code as any of the degrees above are also considered professional degrees. ED stated that degrees aren’t limited to these 11 categories, noting that a professional degree typically requires a professional license to practice and generally is at the doctoral level, requiring six years of higher education, including two post-baccalaureate years.
However, these definitions have caused concern for degrees that aren’t explicitly included, such as graduate programs for:
- Public health workers
- Nurses
- Physician assistants
- Physical therapists
- Social workers
- Educators
What Graduate Students Can Do if Their Program Loses Professional-Degree Status
If your graduate degree program isn’t on the list, no need to panic. Before finalizing the rule, ED still has to submit a notice of proposed rulemaking, accept comments from stakeholders, incorporate their feedback, and publish an updated proposed rule, which could take until next year.
If you’re a current student with loans, you’ll still be able to repay them. However, check with your advisors and registrars to verify your program’s student loan status and determine if you still qualify for loans after July 1, 2026.
If your program does not qualify for federal student loans, or you’ll need to borrow more than your limit, there are other financial aid options available to pay for school.
See if your program allows you to become a teaching assistant (TA) or go into lab research to earn a stipend for your education. If so, reach out to a faculty member with specific requests on how you can impact their research and the role you would like.
There are other options for funding as well, with plenty of private scholarships and fellowships available. To apply, review the scholarship’s requirements, including the necessary documents such as letters of recommendation, GPA, and essays. To help you get started, check out our scholarship pages for adults and nontraditional students, healthcare students, and women.
Lastly, you can also take out private loans. However, research the company you’ll be borrowing from and the interest rates, since private loans do not have the same federal safety nets. Sallie Mae and SoFi are two common private loan distributors that students borrow from.
If you qualify as low- or middle-income or have a low credit score, you might also need a cosigner to take out a private loan.