Urgent Update: Major Changes to Student Loan Reimbursements Announced

UPDATE: The Department of Education has just announced significant changes to how student loans will be reimbursed, effective July 2026. Under President Donald Trump’s “One Big Beautiful Bill,” the classification of degrees as “professional” will directly impact financial aid for students, raising urgent concerns among educators and health care professionals alike.

The new guidelines have sparked alarm, particularly among nursing organizations, as many key degrees, including nursing and other health-related professions, are not classified as professional. This exclusion could lead to reduced financial support for students pursuing careers in these high-demand fields, putting additional strain on the already pressured workforce.

Why This Matters: The cost of higher education has surged over the past three decades, with tuition fees for both public and private colleges doubling when adjusted for inflation, according to NPR. Just in the last decade, undergraduate tuition at public universities increased by 30 percent. With these new changes, students enrolled in programs deemed non-professional may struggle to afford their education, potentially discouraging them from entering vital roles in health care and other sectors.

The “Repayment Assistance Plan” (RAP) will replace existing programs, eliminating the Grad PLUS program and placing caps on Parent PLUS loans. New borrowers will see annual loan limits set at $20,500 for graduate students and $50,000 for professional students. The classification of professional versus non-professional degrees is now crucial, and many are questioning which degrees will be excluded.

According to Inside Higher Ed, the list of excluded degrees notably omits nursing, physician assistants, physical therapists, and audiologists. Other high-demand professions like architects, accountants, educators, and social workers are also left out. Critics argue this decision overlooks decades of progress in health professions and may exacerbate workforce shortages.

Voices of Concern: U.S. Senate candidate Amy McGrath took to social media, stating, “Can someone explain how a theologian is considered more ‘professional’ than a nurse practitioner? This reclassification will push women out of critical careers.” The American Association of Colleges of Nursing (AACN) echoed these sentiments, emphasizing that excluding nursing from the professional degree definition undermines efforts to strengthen the nation’s health care workforce.

The American Nurses Association has launched a petition urging the Department of Education to rectify this oversight and acknowledge nursing as a professional degree. This move is critical to ensuring the future of nursing education and the overall health of communities across the nation.

What’s Next: As these changes unfold, stakeholders are closely monitoring their impact on student enrollment in essential degree programs. The urgency surrounding these reforms highlights the need for immediate dialogue and action to support future health care professionals and maintain workforce stability.

Stay tuned for further updates as this story develops.