Healthcare Loan Access Under Threat: Education Department Proposal Sparks Concern
A recent proposal by the U.S. Department of Education (ED) to redefine “professional degree” for federal student loan purposes is raising alarms among healthcare organizations, including the American College of Rheumatology (ACR). The proposed changes could significantly limit federal loan access for students pursuing careers in crucial healthcare fields, potentially exacerbating existing workforce shortages.
What is the Proposed Change?
Currently, a wide range of healthcare programs qualify for the more flexible $200,000 lifetime federal loan limit. The ED’s draft rule would narrow the definition of “professional degree” to include only 11 programs: Pharmacy (PharmD), Dentistry (DDS or DMD), Veterinary Medicine (DVM), Chiropractic (DC or DCM), Law (LLB or JD), Medicine (MD), Optometry (OD), Osteopathic Medicine (DO), Podiatry (DPM, DP, or PodD), Theology (MDiv, or MHL), and Clinical Psychology (PsyD or PhD).
This means programs like advanced nursing (MSN, DNP, and research-focused nursing PhDs), physician assistant, physical and occupational therapy, audiology, speech-language pathology, and public health would be reclassified as “non-professional” graduate programs. These programs would then be subject to lower federal loan caps – a maximum of $20,500 annually and $100,000 in total – starting July 1, 2026, as established by the One Big Beautiful Bill Act.
Why the Concern?
The ACR, along with 16 other healthcare organizations, has voiced strong opposition to the proposed rule. In a letter to the ED, the groups argue that limiting loan access will force many students to turn to costly private loans or abandon healthcare careers altogether.
The letter emphasizes that reducing federal loan limits won’t necessarily compel institutions to lower costs. Instead, it will likely increase students’ reliance on private financing, which often comes with higher interest rates and fewer protections. The signatories also anticipate a decline in applications and enrollment in health training programs, further straining the healthcare workforce.
Impact on the Healthcare Pipeline
The ACR and its partners believe the proposed changes could have a detrimental effect on the nation’s ability to meet growing patient needs. They urge the Department of Education to reconsider the policy and maintain the current definitions for all health-related professional programs.
Recent Advocacy Wins for Rheumatology
Despite these challenges, the ACR has recently achieved some significant advocacy wins. Congress recently passed legislation funding key agencies, including the Departments of Health and Human Services and Department of Defense, through September 30, 2026. This funding package includes provisions such as a two-year extension of telehealth flexibilities under Medicare, new transparency requirements for pharmacy benefit managers, and increased funding for the National Institutes of Health (NIH) and the Centers for Disease Control and Prevention (CDC).
Looking Ahead
The ACR continues to advocate for policies that support the rheumatology community and ensure access to care for patients. The organization is closely monitoring the Department of Education’s proposal and will continue to engage with policymakers to protect the healthcare workforce.