Updated October 23, 2026
If you are planning a master’s or doctorate in nursing, the way you pay for it changed on July 1, 2026. Federal Grad PLUS loans ended for new borrowers, and new annual and lifetime caps took effect. For months, graduate nursing was left out of the Department of Education’s list of “professional” degrees, which would have meant much lower limits. A court has since paused that decision, but the fight is not over. Here is where things stand.
The short version
| Program | Annual federal limit | Lifetime (aggregate) limit | Status |
|---|---|---|---|
| MSN (including NP programs) | $50,000 | $200,000 | Treated as “professional” under interim guidance |
| DNP | $50,000 | $200,000 | Treated as “professional” under interim guidance |
| DNAP (nurse anesthesia) | $50,000 | $200,000 | Treated as “professional” under interim guidance |
| PhD in nursing | $20,500 | $100,000 | Not on the interim list |
| Grad PLUS | Ended for new borrowers on July 1, 2026 | ||
How we got here
- 2025: federal budget legislation ended Grad PLUS for new borrowers and created two tiers of graduate loan limits: professional students (up to $50,000 a year, $200,000 total) and other graduate students (up to $20,500 a year, $100,000 total).
- Late 2025: the Department of Education’s draft definition of “professional degree” did not include graduate nursing. Nursing organizations, schools and many lawmakers objected.
- May 2026: 25 states and Washington, D.C., sued over the exclusion, and the American Nurses Association led a separate coalition lawsuit. A bipartisan Senate bill, introduced by Sens. Jeff Merkley (D-Ore.) and Roger Wicker (R-Miss.), would classify advanced nursing degrees as professional.
- June 9, 2026: the House Appropriations Committee voted 34–28 to add an amendment to the FY2027 spending bill that would classify advanced nursing programs (NP, CNS, CNM and CRNA) as professional degrees. It still needs to pass the full House and Senate.
- June 24, 2026: a federal judge in Washington, D.C., stayed part of the definition in AANP v. McMahon, pausing it while the case continues.
- June 29, 2026: Federal Student Aid told schools to treat MSN, DNP and DNAP programs as professional degrees for now. The Department says this is temporary and “may change as litigation in the case proceeds.”
What is still uncertain
- The court case has not been decided on the merits. If the Department ultimately wins, MSN and DNP students could go back to the lower $20,500 and $100,000 caps.
- Congress has not acted. The House committee amendment and the Senate bill are not law yet.
- PhD students are left out. AACN is pushing to add nursing PhDs, and the Department says it is still working on a final list.
Already enrolled? You may be protected
Under the final rule, students who were enrolled and borrowing before July 1, 2026 can keep the old, higher limits for up to three years or until they finish, whichever comes first, as long as they stay continuously enrolled. Taking a break or leaving the program ends that protection. If you are thinking about pausing your program, talk to financial aid first.
If federal loans don’t cover the full cost
Many CRNA and DNP programs cost more than $200,000 including living costs. Your options:
- Employer tuition assistance: many hospital systems pay part of graduate tuition in exchange for a work commitment.
- HRSA programs: the Nurse Corps Scholarship and Loan Repayment Program, and the Nurse Faculty Loan Program for future educators.
- Military and VA programs: the Army, Navy and Air Force fund nurse anesthesia and other advanced degrees in exchange for service.
- Private loans: these can fill the gap, but they usually don’t qualify for Public Service Loan Forgiveness or income-driven repayment. Compare rates carefully.
- A cheaper program: public universities and online MSN programs can cost far less than private programs with similar outcomes.
Repayment: the new RAP plan and PSLF
New federal borrowers repay through the new Repayment Assistance Plan (RAP). The Department’s final rule confirms that payments under RAP count toward Public Service Loan Forgiveness. That matters for nurses working at nonprofit hospitals, public health departments and the VA.
Checklist before you start a graduate nursing program
- Get your program’s full cost of attendance in writing, including living costs.
- Ask financial aid to confirm your program’s federal classification (professional or graduate) this term.
- Work out the gap between your federal limit and the total cost, and plan how to fill it before you enroll.
- Ask your employer about tuition assistance and any repayment obligation if you leave.
- Follow AANP v. McMahon and the FY2027 spending bill. Either could change your limits.
FAQ
Is Grad PLUS really gone? Yes, for new borrowers from July 1, 2026. Students already borrowing before that date may keep access under the legacy rules while they stay continuously enrolled.
Is nursing a professional degree now? For federal loan limits, MSN, DNP and DNAP programs are temporarily treated as professional under interim guidance after a court stay. It is not settled.
What about undergraduate nursing (BSN)? These changes are about graduate loans. Undergraduate limits and Parent PLUS have separate rules, so check with your school’s financial aid office.
Sources: Nurse.org, “Graduate Nursing Loans After Grad PLUS” (October 19, 2026) and “Graduate Nursing Finally Gets Interim Professional Degree Status” (June 30, 2026); Nurse.org, House amendment report (June 22, 2026). This article is general information, not financial advice.