Student loan caps went into effect July 1, two days after the Education Department reclassified some nursing and advanced practice provider degrees as “professional,” allowing students to borrow at a higher amount.
Here is what to know.
1. Advanced nursing degrees, among other advanced healthcare degrees, were originally classified as “nonprofessional,” which capped the student loan borrowing amount at $20,500 per year and $100,000 total. Industry groups fought the classification, and a judge June 25 ruled that the Education Department had overstepped in creating criteria for professional programs.
2. On June 30, the Education Department issued an updated list of what programs qualified in the professional category, including advanced nursing, physical therapy and anesthesiology degrees. Certain theology programs were moved to the nonprofessional category. The department said it plans to defend its criteria, meaning further legal actions could come, The New York Times reported.
3. The classification change allows students to borrow up to $50,000 per year and $200,000 total.
4. The change is an advocacy win for nurses and other providers who fought the nonprofessional designation. On June 25, 500 nurses converged on Capitol Hill for the American Nurses Association’s annual Hill Day. The American Association of Nurse Practitioners brought forth the legal challenge in AANP v. McMahon wherein the judge ruled the Education Department overstepped. Other associations, like the American Association of Physician Associates, have also taken legal action to change the labels.
5. The student loan cap overhaul is part of the 2025 One Big Beautiful Bill Act or HR 1. The Education Department said the overhaul is designed to streamline the student loan system and rein in student loan debt, which currently stands at almost $1.9 trillion, CBS News reported July 1. The bill also includes changes to loan repayment programs, sunsetting the Saving on a Valuable Education, or SAVE, plan for a new repayment option.
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