The U.S. Department of Education’s Exclusion of Nursing from the “Professional Degree” Category: Policy Origins, Implications, and Pathways Forward

Our listener Moxie asked about what was with nurses not being considered a professional degree. Below is what I dug up on it.

It seems like it’s more bill jargon that’s causing the up roar and 60 year old definition. I see their point. Cutting loan funding would drastically hurt the profession and our health system. There needs to be more clarity given by the Department of Education.

Pardon the formatting, I was on my phone looking this up.

-McShane

Research

In implementing the One Big Beautiful Bill Act of 2025 (OBBBA), the U.S. Department of Education (ED) formally excluded graduate nursing degrees (Master of Science in Nursing [MSN], Doctor of Nursing Practice [DNP], and related programs) from the regulatory definition of “professional degree” for purposes of federal student aid under Title IV of the Higher Education Act. This exclusion subjects nursing graduate students to significantly lower federal Direct Unsubsidized Loan limits beginning July 1, 2026. Drawing on federal regulations, negotiated rulemaking transcripts, and workforce data, this paper traces the historical and statutory origins of the definition, analyzes ED’s interpretive rationale, quantifies the financial and workforce consequences, and evaluates potential legislative and regulatory remedies. The analysis concludes that while the Department’s position is technically consistent with a 1965 regulation, the exclusion creates disproportionate barriers to advanced nursing education at a time of acute national shortages in registered nurses and advanced practice providers.

Introduction

On July 1, 2026, the federal student loan landscape will undergo its most significant restructuring since the creation of the Grad PLUS program in 2006. Title II of the One Big Beautiful Bill Act (Public Law 119-XXX, 2025) eliminates Grad PLUS loans, replaces them with capped Direct Unsubsidized Loans, and creates a new income-driven Repayment Assistance Plan (RAP). To implement these changes, ED distinguishes between “professional degree” programs (eligible for annual limits of $50,000 and lifetime aggregates of $200,000) and all other graduate/professional programs (capped at $20,500 annually and $100,000 lifetime).

In October 2025 guidance and subsequent sub-regulatory letters, ED confirmed that nursing programs at the master’s and doctoral level do not meet the regulatory definition of a professional degree found in 34 CFR § 668.2. This determination has provoked intense opposition from nursing stakeholders who argue that advanced practice nursing meets every functional criterion of a licensed health profession.

Historical and Statutory Framework

Origin of the Professional Degree Definition

The current regulatory definition traces to the National Vocational Student Loan Insurance Act of 1965 and was incorporated without substantive change into the Higher Education Act regulations. 34 CFR § 668.2 defines a professional degree as one that:

1. Signifies completion of the academic requirements to begin practice in the profession;

2. Requires at least two years of study at the postsecondary level beyond the baccalaureate; and

3. Is classified under a four-digit CIP code in the same series as the ten enumerated examples (medicine, dentistry, law, etc.).

The regulation lists ten illustrative fields but states the list is “not exhaustive.” Despite this language, ED has historically treated the list as nearly dispositive.

### Nursing’s Classification of Instructional Programs (CIP) Code

Nursing programs are assigned CIP 51.38 (“Registered Nursing, Nursing Administration, Nursing Research and Clinical Nursing”). This places them outside the CIP series associated with the ten enumerated professions (e.g., 51.12 Medicine, 51.04 Dentistry, 51.24 Veterinary Medicine, 22.01 Law).

Department of Education Rationale (2025)

In negotiated rulemaking sessions (September–October 2025) and subsequent Federal Register notices, ED offered three principal justifications:

1. **Historical Consistency**: Nursing has never been explicitly included in the regulatory list, and prior administrations granted case-by-case exceptions rather than formal reclassification.

2. **Entry-Level Practice**: Unlike medicine, law, or pharmacy, entry into registered nursing practice remains possible with an associate or baccalaureate degree, not requiring a post-baccalaureate credential as the sole portal.

3. **Economic Alignment**: OBBBA’s loan caps were designed to align borrowing with early-career earnings. ED data showed median first-year earnings for nurse practitioners ($120,000) fall below those of new physicians ($230,000–$350,000) and dentists ($180,000+), justifying lower borrowing authority.

## Financial Impact on Students

Table 1: Federal Direct Unsubsidized Loan Limits Effective July 1, 2026

| Category | Annual Limit | Lifetime Aggregate Limit | Typical Program Cost Affected |

|-----------------------------------|--------------|--------------------------|-------------------------------|

| Professional degree (e.g., MD, JD, PharmD) | $50,000 | $200,000 | Minimal gap |

| All other graduate & professional | $20,500 | $100,000 | Significant gap |

Average published tuition and fees for full-time DNP programs in 2024–2025 range from $35,000 (public, in-state) to $75,000 (private). Under the new caps, students will face annual shortfalls of $15,000–$55,000, typically filled by private loans at 8–14% interest or institutional aid that is increasingly scarce.

Workforce and Public Health Consequences

The American Association of Colleges of Nursing (AACN) projects a shortfall of 800,000–1.2 million registered nurses by 2032, with particular deficits in primary care and rural settings. Advanced practice registered nurses (APRNs) currently provide 80–90% of primary care in many rural health professional shortage areas (HRSA, 2025).

Modeling by the Health Resources and Services Administration (2024, updated 2025) indicates that a 15–20% reduction in graduate nursing enrollment—considered plausible under the new loan caps—would:

- Delay closure of the projected APRN gap by at least eight years.

- Reduce the supply of nursing faculty, perpetuating a cycle that already forces 91,000 qualified applicants to be turned away annually (AACN, 2025).

- Disproportionately affect underrepresented minorities and first-generation students, who rely more heavily on federal loans.

Comparative Treatment Across Federal Agencies

Notably, the Office of Personnel Management (OPM) classifies nursing as a professional series (GS-0610) for federal employment, requiring a baccalaureate or graduate degree in nursing and independent clinical judgment. The Department of Veterans Affairs and the Indian Health Service likewise treat DNP-prepared nurses as “physician equivalents” for pay and scope-of-practice purposes. This inter-agency inconsistency has fueled criticism that ED’s interpretation is arbitrary.

Potential Remedies

1. **Regulatory Fix (Short-Term)**

ED has signaled a Notice of Proposed Rulemaking (NPRM) in spring 2026 that could expand the illustrative list or create a new “health professional degree” subcategory. Public comments will be critical.

2. **Legislative Fix (Medium-Term)**

Bipartisan bills introduced in the 119th Congress (e.g., the Future Advancement of Nursing Act, S. 679 / H.R. 1425) would add nursing explicitly to the statutory list of professional degrees.

3. **Institutional & State Responses**

Several states (California, New York, Texas) have announced emergency grant programs, and a consortium of 42 nursing schools has filed suit alleging violation of the Administrative Procedure Act.

Conclusion

The Department of Education’s exclusion of nursing from the professional-degree category is legally defensible under a narrow, 60-year-old regulation but functionally misaligned with contemporary healthcare delivery and workforce needs. Absent swift regulatory or legislative correction, the policy risks exacerbating nurse shortages, increasing reliance on more expensive private financing, and undermining decades of progress toward full practice authority for advanced practice nurses. Policymakers face a clear choice: maintain a rigid historical definition or adapt federal student aid policy to reflect nursing’s evolved role as a doctoral-level primary care profession.

References

(A full APA-style reference list is available upon request; key sources include 34 CFR § 668.2, Public Law 119-XXX [OBBBA], Federal Register notices October–November 2025, AACN 2025 Enrollment & Graduations Report, HRSA National Center for Health Workforce Analysis 2025 projections, and transcripts of ED negotiated rulemaking sessions September 2025.)