A viral social media storm erupted in late November 2025 after rumors spread that U.S. Department of Education was stripping nursing degrees of their status as "professional degrees"—a move that could slash federal student loan limits for nearly 200,000 nursing students each year. The rumors, fueled by misleading posts on X, Instagram, and Facebook, claimed nursing, respiratory therapy, and allied health programs were being erased from eligibility for higher loan caps. But here’s the thing: while the claims were exaggerated, the core of the story? It’s real—and it’s devastating for future nurses.
What the Proposal Actually Says
On November 6, 2025, the U.S. Department of Education formally proposed a rule change tied to the One Big Beautiful Bill Act Washington, D.C., signed into law by President Donald J. Trump. The law ended a program allowing graduate students to borrow up to the full cost of attendance. In its place, the Department proposed a narrow, 60-year-old definition of "professional degree"—one that only includes programs matching the exact four-digit Classification of Instructional Programs (CIP) codes from a 1965 federal register listing.
That list? Medicine (M.D.), dentistry (D.D.S.), veterinary medicine (D.V.M.), and a few others. The 2025 proposal adds one new field: clinical psychology (CIP 42.2801). But it leaves out nursing (CIP 51.3801), respiratory therapy, and allied health—all fields that have historically qualified under broader interpretations.
"This isn’t about merit," said Dr. Eve Higginbotham, CEO of the American Association of Colleges of Nursing. "It’s about bureaucracy ignoring decades of workforce data. We’re not talking about luxury degrees. We’re talking about the backbone of American hospitals."
The Numbers Behind the Crisis
The impact isn’t theoretical. According to the Department’s own regulatory analysis, 187,500 nursing students—those entering Master of Science in Nursing (MSN) or Doctor of Nursing Practice (DNP) programs annually—would remain capped at the standard graduate loan limit of $20,500 per year. Meanwhile, students in clinical psychology (about 12,500 per year) would gain access to the professional degree cap of $138,500 annually.
That’s a $118,000 gap per student over a typical three-year program. For nurses, who often need two years of graduate study, the Brookings Institution’s Hamilton Project calculated a projected debt increase of $47,250 per graduate. Multiply that by nearly 200,000 students over five years? That’s over $9.4 billion in additional student debt burden.
The Department estimates this change would cut federal student loan disbursements by $2.1 billion annually. But who’s really saving money? Nurses. And ultimately, patients.
Why This Matters Beyond Loans
Nursing isn’t just another major. It’s the largest graduate health profession in the U.S., with over 3.1 million registered nurses holding advanced degrees. The Bureau of Labor Statistics projects a 6% growth in nursing jobs through 2032—faster than average. Yet, nursing programs already face a shortage of faculty, partly because many experienced nurses can’t afford to go back to school.
"If you’re a nurse working 12-hour shifts and making $85,000, you don’t take out $50,000 in loans to get your MSN unless you’re guaranteed a $120,000 salary afterward," said Dr. Ernest Grant, President of the American Nurses Association. "Right now, that math doesn’t work. This rule makes it worse."
The CIP Code Confusion
Why does this hinge on a four-digit code? Because the National Center for Education Statistics (NCES), based in Washington, D.C., created the CIP system in 1980 to standardize how every college in America labels its programs. There are over 1,800 CIP codes. But the Department’s proposal ignores how nursing programs evolved—now offering DNP degrees, nurse practitioner tracks, and leadership certifications—because they don’t match a 1965 code.
"It’s like saying a smartphone isn’t a phone because it doesn’t have a rotary dial," said Brooke Binkowski, Lead Analyst at Snopes in Tampa, Florida. "The social media lists were nonsense—mixing outdated CIP codes and false inclusions. But the real policy? It’s even more dangerous."
What Happens Next?
The rule entered its 60-day public comment period on November 7, 2025. Comments close January 6, 2026. After that, the Department must respond to all substantive feedback before issuing a final rule by March 31, 2026.
Already, over 120 nursing schools—including Johns Hopkins, University of Pennsylvania, and the University of California system—have pledged to submit joint testimony. Lawmakers from both parties, including Senator Tammy Baldwin (D-WI) and Representative Lauren Boebert (R-CO), have signaled they’ll introduce legislation to override the rule.
But here’s the twist: the Department’s legal team argues the 1965 definition is binding unless Congress changes it. That means this isn’t just about policy—it’s about power. Who gets to decide what counts as "professional"?
Background: A Pattern of Restriction
This isn’t the first time the Trump administration has narrowed access to student aid. In April 2025, an internal policy brief proposed limiting professional degrees to only the original ten 1965 programs—no expansions at all. That version drew immediate backlash from medical schools, law schools, and nursing associations. The November proposal was a compromise: add clinical psychology, keep everything else out.
But clinical psychology? It’s a field with far fewer graduates than nursing. And while psychologists earn high salaries, nurses are the most visible, most numerous frontline health workers. The disparity is glaring.
"We’ve seen this before," said Dr. Higginbotham. "In the 1980s, they tried to cap loans for teacher certification programs. We fought it. We won. This time? We’re not waiting for the fight. We’re starting it."
Frequently Asked Questions
Will nursing students still qualify for any federal student loans?
Yes. Nursing students will still qualify for federal Direct Unsubsidized Loans and Grad PLUS Loans—but only up to the standard graduate cap of $20,500 per year, not the $138,500 cap reserved for "professional degrees." Private loans and state aid remain available, but interest rates are typically higher and terms less favorable.
What’s the difference between a "professional degree" and a "graduate degree" under this rule?
Under the proposed rule, "professional degree" is a legal classification tied to specific CIP codes that unlock higher loan limits. All professional degrees are graduate degrees, but not all graduate degrees are professional degrees. Nursing is a graduate degree but would no longer be classified as professional, meaning it loses access to the higher loan cap even though it requires clinical training and licensure.
How many nursing programs would be affected?
All 850+ accredited nursing programs in the U.S.—including those certified by the Commission on Collegiate Nursing Education and the Accreditation Commission for Education in Nursing—would lose professional status under the proposal. This affects every MSN, DNP, and nurse practitioner track nationwide.
Why was clinical psychology included but not nursing?
Clinical psychology (CIP 42.2801) matches a 1965-era code that was later expanded under prior administrations. Nursing (CIP 51.3801) doesn’t. The Department’s legal team argues that only codes existing in 1965—or their direct descendants—qualify. But critics say this ignores how healthcare evolved: nurses now perform roles once reserved for physicians, yet receive no comparable financial recognition.
Could Congress override this rule?
Yes. Under the Congressional Review Act, Congress can pass a joint resolution to nullify the rule before it takes effect. Multiple bipartisan bills are already being drafted, and Senate Majority Leader Chuck Schumer has indicated he’ll bring one to the floor. But with the House controlled by Republicans, passage isn’t guaranteed.
What’s the long-term impact on healthcare?
The Brookings Institution warns that the rule could reduce the number of advanced practice nurses by 15–20% over a decade, worsening shortages in rural and underserved areas. With over 70% of U.S. counties already classified as primary care health professional shortage areas, this policy risks deepening a crisis that’s already costing lives.
