Concerns about loan limits for graduate nursing degrees

“Education Secretary Linda McMahon spent much of her time during a House Education and Workforce Committee hearing on Thursday defending the agency’s exclusion of nursing as a “professional degree” for student loan limits. The Education Department’s final rule, effective July 1, excludes graduate-level nursing programs from its defined “professional degree” category. The change caps federal borrowing for nursing students at $100,000, separating them from designated professional fields, such as medicine and law, that have higher $200,000 limits. Democrats on the committee contended that the move will hamper efforts to address a nursing workforce shortage and prompt students to seek pricier private student loans. McMahon argued that the designation aims to reduce students’ costs. She said colleges have raised tuition, especially for graduate programs, because they know the federal government has provided loans with few limits. The new loan limit aims to encourage colleges to reduce their prices. Democrats asked McMahon to cite examples where colleges have done so in response to the new limits. She said two universities so far have lowered their prices for certain programs, though they were not nursing programs. Even some Republicans seemed uncertain about the approach. Rep. Ryan Mackenzie (R-Pennsylvania) asked how lowering graduate loan limits for nursing programs would make the programs more affordable and address the national nursing shortage. McMahon, who said that 95% of nursing programs don’t exceed the caps, argued that the nursing shortage is not in the upper levels that require graduate degrees but in nursing jobs that require undergraduate degrees and certificates. She added that students can earn a certificate for an entry-level nursing job and then work toward a bachelor’s degree. She noted that many hospitals help employees with tuition to attain related higher degrees. The American Association of Community Colleges has joined other higher education and nursing organizations in raising concerns about preserving loan access for postbaccalaureate nursing students who serve as the pipeline for community college nurse educators, particularly in rural and high-need areas. Targeting inter-agency agreements During the four-hour hearing, Democrats also again went after the administration’s inter-agency agreements, arguing that they have not streamlined processes but added red tape. McMahon defended the agreements, citing that the partnerships between the departments of Education and Labor has, as an example, prompted states to better align education and workforce development programs in their Workforce Innovation and Opportunity Act state plans. Rep. Haley Stevens (D-Michigan) also questioned the department’s proposal in its fiscal year (FY) 2027 budget request to nix community colleges’ eligibility for federal Perkins funding, similar to its request in FY 2026. “It’s going to be a huge blow to a critical piece of our workforce development pipeline in Michigan at a time when millions of Americans are joyfully choosing to work with their hands and pursuing careers in the trades,” Stevens said. Wide range of issues During the hearing, McMahon addressed a wide variety of issues from the committee members, from staffing at ED’s civil rights office and financial shortfalls in the Pell Grant program, to concerns over funding for special education, literacy programs and TRIO programs. Republicans lauded McMahon for the department’s efforts to quickly implement various laws, such as last summer’s budget reconciliation legislation that included student loan reforms and the new Workforce Pell program, which begins on July 1. They also gave her kudos for fixing the federal student aid application process, curbing student aid fraud and getting student loan repayment plans back on track. McMahon and several Republican members focused on ED’s efforts to shield student aid from fraudulent applicants. She noted ED continues to implement new efforts to thwart fraudsters, who are using AI to exploit vulnerabilities. McMahon noted the department now asks for photo IDs for questionable applicants; she said one photo was used for three separate FAFSA applications. The post Concerns about loan limits for graduate nursing degrees first appeared on Community College Daily .

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