The U.S. Department of Education recently released a Myth vs. Fact explainer to address growing confusion and speculation surrounding the new graduate loan limits introduced under the One Big Beautiful Bill Act (OBBB Act). As institutions, students, and professional communities react to the changes, misinformation has quickly begun circulating, particularly around which programs qualify as “professional degrees” and how borrowing caps will affect fields like nursing, healthcare, and other graduate disciplines.
Under the new law, graduate programs are divided into two categories: those designated as professional degree programs, which qualify for a higher federal loan limit of $200,000, and all other graduate programs, which face a lower cap of $100,000. The Department emphasizes that this distinction is administrative, not a judgment of program quality or professional value, and that the new limits apply only to graduate-level federal student loans, not undergraduate borrowing, and not to private loans or institutional aid.
The Department’s Myth vs. Fact release aims to calm concerns, correct circulating rumors, and provide clarity for students, financial aid professionals, and the broader higher education community as the new rules move toward finalization.
See the Department’s release here: Myth vs. Fact: The Definition of Professional Degrees
A brief summary of the Department’s Myths vs Facts is below.
Myth: Nurses or nursing programs are considered less “professional” because they might be excluded from the “professional degree” definition.
Fact: The term “professional degree” here is purely an internal classification for loan-limit purposes—not a judgement on the value or professionalism of a program.
Myth: Graduate nursing students will have a harder time getting federal loans, worsening the nursing shortage.
Fact: The data show that ~95 % of nursing students borrow under the annual limits and thus are not impacted by the new caps. Also: undergraduate nursing (BSN/ADN) isn’t affected, and ~80 % of the nursing workforce doesn’t hold graduate degrees anyway.
Myth: The Department of Education made this decision to exclude nurses unilaterally.
Fact: A negotiated rule-making committee (with stakeholders) worked on the definition, and public comment opportunities remain before the rule is finalized.
Myth: Tuition will automatically go up because of these caps.
Fact: Since 2007, graduate/professional students have been able to borrow up to the full cost of attendance, which has allowed some tuition inflation. The new caps are expected to help rein in program costs.