New Federal Loan Limits Cap Graduate Nursing Borrowing at $20,500 Per Year

A federal law that takes effect July 1 caps annual federal loans for graduate nursing students at $20,500 and lifetime borrowing at $100,000. Students pursuing professional degrees in fields such as optometry, podiatry, chiropractic, pharmacy, clinical psychology, medicine, veterinary medicine, law, and clergy can borrow up to $50,000 per year and $200,000 total.

Rebecca Greenawalt, 31, works full time as a mental health nurse in a Connecticut prison while enrolled in a master’s program at Quinnipiac University. D. program. Greenawalt said the new limits make it difficult to pause studies or start a family while working full time.

Paul Smith, dean of nursing at Linfield University, said the limits may reduce the number of diverse students who can complete graduate programs and return to serve their communities. Mahlon Mathieson, 32, a nurse from New York City enrolled in a doctorate program at Columbia University, said students who can afford the degrees may not reflect the communities they serve.

The American Association of Colleges of Nursing reported a 7.2 percent faculty vacancy rate across 863 schools, leaving 1,588 full-time positions unfilled. A November 2025 survey of 469 deans found that 78 percent expect graduate nursing enrollment to decline under the new limits.

Villarruel, dean of nursing at the University of Pennsylvania, said the school launched a 15-month master’s program for career switchers in 2023 partly because graduate students could previously borrow the full cost of attendance. The program now costs about $200,000 including living expenses.

Villarruel said the school is seeking private lenders but expects higher interest rates and cosigner requirements. Linfield University offers a similar 15-month program costing about $150,000. The Grad PLUS loan program, which previously allowed borrowing up to the full cost of attendance, is ending for new graduate students after July 1.