On July 4 last year, President Donald Trump signed the One Big Beautiful Bill Act (OBBBA), a sweeping law that touched nearly every aspect of American life, from immigration to taxes to education. One of those provisions was caps on federal student loan borrowing, touching on one of Trump’s campaign promises to reduce the cost of higher education by restructuring federal funding.
As of July 1, federal student loans are capped at $100,000 for graduate degrees and $200,000 for professional degrees. Previously, students could finance advanced degrees with unlimited Degree PLUS loans, which was eliminated in the bill.
Given that these caps significantly alter the amount of federal aid one can use to fund one’s graduate programs, there is a growing group in Congress seeking to protect one high-demand profession in particular from this cap: nursing.
“America’s strength has always been rooted in the talent, ingenuity and determination of its people,” House Budget Committee Chairman Tom Cole (R-Okla.) said in a statement opinion. “By investing in their health, skills and potential, this legislation will help keep our country strong, competitive and prepared for the future.”
Cole’s comments come as the Republican-led House Budget Committee last week tabled an amendment to its budget proposal that would increase loan limits for master’s and doctoral degrees in nursing — which would otherwise be capped at $100,000 starting July 1. The measure comes alongside other provisions that expand funding for nursing education and biomedical research, just as it cut programs for refugees and unaccompanied minors –made it out of committee in a vote of 34 to 28.
“Following the President’s direction, we have closely scrutinized every program funded in this bill and worked to codify the Trump Administration’s efforts to end senseless progressive abuses,” Robert Aderholt (R-Ala.), chairman of the Subcommittee on Labor, Health and Human Services, Education and Related Agencies, said in the statement. “This bill improves educational opportunities, restores accountability, and ensures taxpayer dollars are used for core functions such as biomedical research, biodefense infrastructure, and rural health.”
Lack of nursing educators
In May, Senators Jeff Merkley (D-Ore.) and Roger Wicker (R-Miss.) introduced a bipartisan bill that would classify advanced nursing degrees as professional degrees, thereby raising the loan limit for those students. The OBBBA defines professional qualifications as medical, dental and legal qualifications, but specifically excludes some of these most popular courses B. a master’s degree in economics or education. The new bill would apply to students pursuing training to become nurse practitioners, clinical nurse practitioners, certified midwives, certified anesthesiologists, and other nursing professions that require an advanced degree.
In December, five Republican representatives backed a bill that would expand professional degrees to include nursing and other health care degrees, as well as MBAs and master’s degrees in education and theology. A bipartisan group of more than 150 members of Congress signed a letter Calls on the Department of Education to add nursing to its list of professional qualifications in March. Politicians and nursing groups have warned that taking out federal loans will result in students converting to private loans, which typically have higher interest rates, which will result in students having more debt over time.
Bipartisan support for nursing education comes at a critical time for nursing. There has been a shortage of nursing staff in the country for years, which is largely due to this There aren’t enough teachers to meet the need for nursing programs for registered nurses and licensed practical nurses. Nursing educators must have at least a master’s degree, which will be more difficult to achieve due to a lifetime credit limit for all degrees. According to the American Association of Colleges of Nursing, the national nursing job opening rate is 7.2%. The federal Health Resources and Services Administration predicts that the shortage of registered nurses in the U.S. will continue until 2038, and that by then the U.S. will have only 70% of the licensed practical nurses it needs.
In other areas of higher education, however, the problem is often the opposite: as a rule, there is too much interest in a limited number of study places. Less than a quarter Life and health sciences graduates receive a permanent or tenure-track position in academia.
The Ministry of Education did not respond Fortune’s I ask for a comment, but it is what it is called before The caps were “reasonable limits” and said the loan limits would put pressure on universities to reduce the cost of education. According to the Education Data Initiative, The average federal student borrower had $39,075 in debt.
The budget change is part of the federal budget, meaning this year’s long-term care borrowers will still have a $100,000 cap until October 1 at the earliest, when the bill takes effect.