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A federal student aid rule could have significant implications for graduate nursing education and the future supply of advanced practice nurses.
The American Association of Colleges of Nursing (AACN) said it has joined a coalition of national healthcare and higher education organizations in a lawsuit challenging a U.S. Department of Education rule that excludes nursing from its definition of professional degree programs.
If allowed to take effect on July 1, 2026, the rule could significantly reduce federal loan access for graduate nursing students pursuing master’s and doctoral degrees, according to AACN. As a result, nursing leaders say the policy could make advanced nursing education financially out of reach for many students.
Why is AACN suing the Department of Education?
AACN and several national healthcare organizations are challenging a new Department of Education rule that excludes nursing from the federal definition of professional degree programs. Nursing leaders argue the policy would reduce student loan access for graduate nursing students, potentially limiting the future supply of nurse practitioners, nursing faculty, researchers, and other advanced practice nurses.
The lawsuit was filed by a coalition of healthcare and higher education organizations that argue the Department of Education’s final rule would unlawfully restrict access to the Direct Loan program, the nation’s largest source of federal financial aid for postsecondary education, for graduate nursing students.
AACN joined five other organizations as plaintiffs:
American Association for Marriage and Family Therapy
American Association of Nurse Practitioners
Association of Schools and Programs of Public Health
National Association of Pediatric Nurse Practitioners
- National Education Association
AACN is seeking to stop the rule from taking effect before the start of the 2026-2027 academic year, to protect loan access for graduate nursing students.
“Preserving all pathways into advanced nursing programs and expanding the pool of nursing graduates must be a national priority to meet the demand for expert nursing care,” said Dr. Deborah Trautman, AACN President and Chief Executive Officer. “AACN will continue to lead the academic nursing community in championing nursing as a professional degree and remains committed to pursuing all available avenues to reversing the Department of Education’s decision.”
Nearly 200,000 Graduate Nursing Students Could Be Affected
According to AACN, nearly 200,000 students are currently enrolled in master’s and doctoral nursing programs nationwide.
These students are preparing for careers as Advanced Practice Registered Nurses (APRNs), nurse educators, researchers, healthcare leaders, and other advanced clinical roles. Accordingly, the rule could affect the pipeline for these professions.
AACN data released in December 2025 found that more than 80% of post-baccalaureate nursing students surveyed said proposed federal loan limits would negatively affect their ability to finance their education.
Under the rule, annual student loan borrowing would be capped at $20,500, with a lifetime limit of $100,000.
AACN reports that many students have indicated they may need to delay or abandon graduate education if federal loan funding is insufficient to cover tuition, clinical education expenses, and living costs, which could reduce the number of nurses entering advanced roles. In turn, this could deepen access concerns for graduate nursing programs.
Nursing Schools Anticipate Broader Consequences
AACN leaders say the consequences could extend beyond graduate education and affect the broader nursing pipeline.
Among nursing school deans surveyed by the organization, 77% reported that the new loan caps would negatively affect faculty at their institutions, while 71% anticipate downstream effects on undergraduate enrollment and the future nursing workforce.
The organization argues that limiting access to graduate nursing education could make it more difficult to prepare the nurse practitioners, faculty members, researchers, and healthcare leaders needed to meet growing patient care demands, leaving critical workforce needs unmet.
Multiple Legal Challenges Underway
AACN’s lawsuit is one of several legal efforts challenging the Department of Education’s rule. Together, these cases add pressure to the policy before it takes effect.
A separate lawsuit has been filed by 24 state attorneys general and two governors. The American Nurses Association and other nursing organizations have also launched legal action opposing the policy.
The plaintiffs, represented by Democracy Forward and Jacobson Lawyers Group PLLC, argue that the Department of Education’s rule violates the Administrative Procedure Act and are seeking to block its implementation before it takes effect on July 1.
For nursing schools and students, the case could determine whether future nurses, educators, researchers, and advanced practice providers continue to have access to the federal loan support many rely on to complete graduate education, or face sharper financial barriers.
