A group of the nation's leading nursing organizations have joined forces to file a lawsuit against the U.S. Department of Education, challenging a recent rule change that affects how nursing degrees are classified for federal student loan purposes. The outcome of this legal battle could have far-reaching consequences for nursing education, workforce development, and patient care across the country.
What Changed — and Why It Matters
Under the new policy, set to take effect July 1, 2026, graduate nursing programs are classified as standard graduate degree programs rather than professional degree programs. That distinction is significant because it determines how much students can borrow through federal loan programs.
Students in programs with a professional degree designation can borrow up to $50,000 per year with a lifetime cap of $200,000. Those in graduate degree programs are limited to $20,500 annually and $100,000 over their lifetime — a substantial difference for Nurses pursuing advanced practice roles that often require expensive master's or doctoral programs.
Who's Behind the Lawsuit
The eleven organizations that filed suit represent a broad cross-section of the nursing profession:
- American Nurses Association (ANA)
- American Association of Nurse Anesthesiology (AANA)
- Association of Women's Health, Obstetric, and Neonatal Nurses (AWHONN)
- American College of Nurse Midwives (ACNM)
- American Holistic Nurses Association (AHNA)
- Association of Pediatric Hematology/Oncology Nurses (APHON)
- Chi Eta Phi Sorority, Inc.
- The Health Ministries Association (HMA)
- National Association of Clinical Nurse Specialists (NACNS)
- National Association of Nurse Practitioners in Women's Health (NPWH)
- The American Association of Nurse Attorneys (TAANA)
This lawsuit is separate from a similar legal challenge filed by a coalition of states, though both aim to block portions of the new borrowing restrictions.
Four Key Concerns for the Nursing Workforce
Fewer Nurses may pursue advanced practice roles. Many Registered Nurses return to school mid-career to become Nurse Practitioners, CRNAs, Nurse Midwives, or Clinical Nurse Specialists — often while managing jobs, families, and existing financial obligations. If federal loan options shrink, some may decide that graduate school simply isn't financially feasible. The AANA has noted that restricting the pipeline of CRNAs is especially concerning given growing patient demand and the critical role these providers play in rural and underserved areas.
The nursing faculty shortage could get worse. Nursing schools are already struggling to find enough qualified educators. According to the American Association of Colleges of Nursing, more than 80,000 qualified nursing applicants were turned away in 2024 — not for lack of interest, but for lack of faculty. Since most Nurse Educators hold graduate or doctoral degrees, any reduction in the number of Nurses pursuing advanced education could shrink the future pool of faculty, creating a cycle that limits both educational capacity and workforce growth.
Rural and underserved communities could be hit hardest. Advanced Practice Nurses are a lifeline in areas where Physician shortages are most severe. Projections from the Health Resources and Services Administration suggest that by 2028, rural areas could face a nursing shortage nearly five times greater than metro areas. Fewer Nurses entering advanced practice roles would disproportionately affect the communities that already have the least access to care.
Employers may be left to fill the financial gap. As federal support shrinks, health systems may face growing pressure to expand tuition reimbursement programs and academic partnerships to attract and develop talent. While employer-sponsored education can be a valuable tool, it also introduces new disparities — Nurses working for organizations with generous benefits fare far better than those who don't.
What's Next
The courts will ultimately decide whether the Department of Education's classification holds up to legal scrutiny. In the meantime, nursing leaders are urging policymakers to recognize that decisions about graduate education financing are inseparable from the broader challenge of building a sustainable healthcare workforce. Access to affordable advanced education isn't just a student issue — it's a patient care issue.