New federal student loan limits could deepen nursing shortage: Lawsuit
Janss Steps on Tuesday, May 5, 2026 at UCLA in Westwood, CA.
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A coalition of 25 states and the District of Columbia lawsuit filed The Trump administration discussed new limits on federal student loans this week. Experts say the lawsuit comes at a critical time for students who want to pursue careers in healthcare fields such as nursing, social work, physical therapy and occupational therapy.
Beginning this year, legislation created in President Donald Trump’s One Big Beautiful Bill Act limits the amount of federal loans students can borrow over a lifetime for graduate school to $100,000 and sets the lifetime loan limit for professional programs such as medicine, dentistry or law school at $200,000, according to rules finalized by the U.S. Department of Education in late April.
“Higher education is expensive, and our healthcare system is already under tremendous strain,” New York Attorney General Letitia James said in a statement announcing the lawsuit Tuesday. he said. “This rule will push talented people away from critical professions and leave communities short on the number of health care providers they desperately need.”
The Department for Education said the new loan limits would provide a much-needed check on rising tuition fees, which have risen significantly in recent years, outpacing inflation and other household expenses. High costs have put college and graduate education out of reach for some, while crippling student loan debt for others.
“After decades of uncontrolled student loan borrowing that gives schools no reason to control costs, these common-sense loan caps created by Congress are already incentivizing colleges and universities to lower tuition,” Undersecretary of Education Nicholas Kent told CNBC in an email.
“Frankly, these Democratic governors and attorneys general are more interested in the profitability of institutions than the ability of American students and families to access affordable postsecondary education,” Kent said.
Nurse shortage
For students pursuing careers in nursing and other high-need fields, “the path forward is increasingly uncertain, with consequences not only for individual borrowers but also for the workforce pipelines upon which these communities depend,” said Megan Walter, senior policy analyst for the National Association of Student Financial Aid Administrators, a financial aid organization.
The American Nurses Association, a professional advocacy group, said the new rules could lead to a decline in the number of registered nurses nationwide. Demand for healthcare professionals is increasing. Research shows that the aging baby boomer generation is causing a major long-term demographic shift and increasing the need for healthcare and workers.
Demand for registered nurses is expected to grow faster than the number of full-time workers over the next decade, according to the federal government’s December briefing. National Center for Health Workforce Analysis. Assuming attrition, graduation, and workforce participation remain the same, a 3% shortage is projected by 2038.
“This rule, if implemented, would have a direct and devastating impact on health care across our country,” American Nurses Association President Jennifer Mensik Kennedy said in a statement. he said.
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About 20% of nursing students will borrow more than allowed under the new loan limits, according to calculations by higher education expert Mark Kantrowitz. Compared to other master’s degrees, “nursing programs tend to be more expensive because they require a lot of hands-on training,” he said.
Also on Tuesday was Sen. Jeff Merkley, D-Ore. and Roger Wicker, R-Miss., introduced a bill Classifying postbaccalaureate nursing degrees as “professional degrees,” which would entitle nursing students to higher federal student loan limits.
“It is imperative that Congress addresses the nursing shortage in the United States,” Merkley said in a statement. he said. “This legislation will make nursing a more accessible profession by expanding loan limits for nursing students.”
Tuition discounts
But some experts say the new rules could put pressure on schools to cut costs. nursing programs are already lowering tuition costs to increase access.
Other graduate schools have also begun offering tuition discounts next fall.
For example, both Purdue University and University of California, IrvineReduce tuition at business schools by up to 40% to fall below the federal loan limit for graduate business degrees. For a limited time, Johns Hopkins is offering a class of 2026 graduates from any college or university in Maryland. 50% tuition discount to any graduate program.
While some agencies have responded quickly, real progress across the board may take much longer to occur, according to NASFAA’s Walter.
“These processes take time, and students are now making their enrollment decisions,” Walter said. “Budget cycles and operational realities do not move that quickly, and meaningful changes to program pricing can take years.”
Higher education experts, meanwhile, say a federal loan cap could push more students into the private loan market to cover costs, often leading to higher interest rates and fewer protections.
Currently the rates for federal student loans are currently 6.39% to 8.94%Rates for private student loans can be as high as: 23%According to NerdWallet.
In a statement announcing the lawsuit, the attorney general said the rule “will force many students to rely on more expensive private loans, take on unsustainable debt, delay completing their education, or abandon these programs altogether.”
— CNBC’s Kamaron McNair contributed reporting.
