The U.S. Department of Education proposed a rule on January 29, 2026, that will significantly alter federal student loan borrowing limits for graduate and professional students beginning July 1, 2026, according to a fact sheet released by the American Hospital Association.
Under the One Big Beautiful Bill Act (OBBBA), students pursuing graduate degrees will face an annual loan limit of $20,500, with a total aggregate limit of $100,000 for their entire program of study. Professional degree programs, yet, will be permitted to borrow up to $50,000 annually, capped at a total of $200,000. The AHA warns that the Department of Education’s proposed definition of “professional degree” excludes a number of critical healthcare programs.
Specifically, the Department of Education’s Reimagining and Improving Student Education Committee recommended narrowing the definition of a professional degree to only eleven fields: chiropractic, clinical psychology, dentistry, law, medicine, optometry, osteopathic medicine, pharmacy, podiatry, theology, and veterinary medicine. This exclusion impacts programs such as nursing, social work, physician assistant studies, physical therapy, and occupational therapy, potentially limiting funding for students in these fields.
The American Hospital Association argues that the healthcare system relies heavily on professionals with advanced degrees beyond those currently included in the proposed definition. They state that hospitals require advanced practice registered nurses, social workers, physical therapists, occupational therapists, and others, all of whom require advanced degrees and licensure to practice in a hospital setting.
According to a report by the National Association of Student Financial Aid Administrators, the new borrowing limits will impact approximately 28 percent of all student loan borrowers, particularly those in health, education, architecture, and business administration programs. The College Investor reports that the new limits for professional students—$50,000 per year and $200,000 total—may leave large funding gaps for some health science programs not designated as “professional.”
The Department of Education convened the Reimagining and Improving Student Education Committee to recommend an updated definition of a professional degree program to inform rulemaking for implementing the new requirements established by the OBBB Act. The AHA is urging the Department of Education to broaden its definition of professional degrees to encompass a wider range of healthcare programs.
