Major changes to federal student loans are coming in 2026, and they are already sparking concern across the healthcare education landscape. As part of the sweeping higher education provisions in the recently passed “One Big Beautiful Bill,” the U.S. Department of Education has proposed new rules to make college more affordable and simplify repayment.
While some reforms focus on streamlining income-driven repayment plans, others dramatically reshape how graduate and professional students can finance their education, including the elimination of the Grad PLUS loan program and the introduction of tighter borrowing limits.
These changes could significantly affect students pursuing healthcare careers, where graduate and professional degrees are often required, and tuition costs are high. Tom Moore, founder of Get College Going and a higher-education financing expert, says the loss of federal loan options may alter who can pursue advanced healthcare training in the first place.
“It’s the fact that their loan programs are going away,” Moore explains. “The Grad PLUS program is being eliminated on July 1 this year, for new borrowers, and loan limits for graduate students and ‘professional’ students are being adjusted. For professional students, funding is being reduced, so there’s less access to federal funds to help pay for school. It’s going to cause an impact on who is going, how they’re going to pay, and how long it might take them to complete particular programs.”
As the 2026 rollout approaches, students, schools, and healthcare professionals are grappling with the implications of these controversial loan changes for access to education and the future of the healthcare workforce.
Meet the Expert: Tom Moore
Tom Moore is the founder and president of Get College Going, an education consulting firm focused on helping students and families navigate the college admissions process with confidence. With decades of experience in higher education and admissions advising, Moore has worked with thousands of students to identify best-fit schools, strengthen applications, and make informed decisions about their academic futures.
Through personalized coaching, resources, and strategic guidance, Tom Moore and the Get College Going team aim to simplify what can feel overwhelming, empowering students to reach their college goals while reducing stress for families.
How Reduced Loan Access Could Change Who Pursues Healthcare Careers
Moore explains that until now, most graduate and professional students have relied on two main borrowing options to pay for school: federal student loans and private education loans. For many healthcare students, the Grad PLUS program has been the primary pathway to financing advanced degrees.
“Up to this point, most students who want to go on to graduate school have been able to access the Grad PLUS program,” Moore says. “It required only limited credit approval, had a fixed interest rate, and allowed borrowers to take advantage of the government’s more flexible repayment programs.”
For students pursuing healthcare careers that require graduate education, such as nurse practitioners, physical therapists, occupational therapists, or healthcare administrators, this access has been critical.
“Say I want to go into nursing. I’ve got my undergraduate degree, but I want to become a nurse practitioner,” Moore explains. “Students have been able to borrow upwards of $50,000 a year through Grad PLUS to pay for their education as full-time students, rather than trying to work full-time while going to school part-time.”
With the elimination of Grad PLUS and the redefinition of who qualifies as a “professional” under the standard federal loan program, Moore says access to funding is shrinking across multiple fields, including healthcare, education, architecture, and beyond.
“The Department of Education hasn’t just eliminated that resource,” he says. “They’re also changing the using a narrow definition of what a professional is, and by doing that, they’re reducing access to money. They’re saying you can still go to school and use our loan program, but you can’t get as much.”
While the changes are being framed as a way to protect students from taking on too much debt, Moore believes that reasoning misses the reality for many graduate healthcare students.
“With this category of individuals, that’s a false solution,” he says. “Most of them are able to get higher earnings by getting advanced degrees, and they’re able to pay off that debt. The real national debt problem comes from students who went into programs where they couldn’t find jobs, didn’t graduate, or maybe shouldn’t have gone in the first place.”
Ripple Effects on the Healthcare Workforce and Education System
Moore warns that these loan changes could have long-term consequences for the healthcare workforce, especially in already strained fields like nursing.
“On July 1, these changes are going to impact how we fill workplace positions down the road,” he says. “Nursing is a huge category where we’re already short on people. My wife was a nurse for 43 years, and when Covid hit, a lot of nurses walked away. There’s a massive vacancy right now, and this is going to affect care.”
According to Moore, the financial barriers created by reduced access to federal loans may discourage many professionals from pursuing further education.
“I think we’re already seeing a loss of individuals going into some of these fields,” he explains. “A nurse might finish undergrad, work on the floor for five or ten years, and then want to move into administration or become a nurse practitioner. But now they’re asking, ‘How am I going to do that while working full time, going to school part time, and having access to limited funds?’”
While private education loans are often cited as an alternative, Moore notes that they come with stricter requirements that many graduate students simply cannot meet. “Private loans require the same credit underwriting you’d need for a car loan or mortgage,” he says. “You have to be creditworthy, and you have to show the debt-to-income ratio to carry that loan while you’re in school, or you need a cosigner.”
In most cases, that responsibility falls on parents or spouses, which creates additional strain.
“For a 25- to 28-year-old going back for a master’s, the cosigner is usually a parent or a spouse,” Moore says. “But parents are aging into retirement. Why should we be putting that burden on older adults? Some families even skip parents altogether and turn to grandparents because of credit issues. There’s a domino effect to all of this.”
Beyond individual students, Moore believes the changes could also threaten the stability of healthcare education programs themselves.
“Colleges already have limits on how many students they can accept into programs like nursing because of clinical placement requirements,” he explains. “If schools can’t fill those seats, they start having financial problems and begin questioning whether certain programs can even survive.”
Taken together, Moore says the cause-and-effect chain of these loan reforms could reshape not only who pursues healthcare careers, but also the institutions responsible for training the next generation of professionals.
Lack of Awareness and the Financial Reality for Families
Moore says one of the biggest obstacles surrounding these loan changes is that many students and families do not fully understand how higher education is financed, particularly before reaching the college decision stage.
“I think most parents and students, especially juniors and seniors in high school, have no concept of any of this unless they’ve attended a seminar or workshop,” he explains. “Paying for college is something people tend to put off. I joke that it’s right up there with death and taxes. We wait, we wait, we hope, we hope, and then suddenly it hits us.”
According to Moore, meaningful conversations about affordability often come too late, after students have already committed to a school or program. “When I run pre-college planning workshops, the first thing I talk about is that you’re purchasing an education,” he says. “What are your resources? What’s your budget? What does your credit look like? But student loans, whether federal or private, usually don’t come up until the very end of the process.”
As federal borrowing options shrink, Moore expects more families to feel pressure to rely on private loans or ask relatives to cosign. “You’re going to see more pressure on family members to sign on private loans,” he says. “And for many people, limited financial resources are what will ultimately hold them back from continuing their education.”
Moore also notes that many healthcare professionals pursue advanced degrees while working full-time and attending school part-time, often covering a portion of costs out of pocket. While tuition assistance is not widespread in healthcare, he believes workforce shortages could push employers to step in.
“If hospitals start realizing they don’t have enough people moving into advanced roles like nurse practitioners, the creative employers may begin using tuition assistance programs to help fund education,” he explains. “That could become one way to fill the gap left by federal loans.”
Even so, Moore warns that the new financial barriers may cause many individuals to rethink their career paths. “It’s definitely going to impact people,” he says. “Some will think twice about going back to school. Others may stay where they are longer than they planned, or even choose different fields altogether.”
When it comes to whether these changes could drive down the cost of education, Moore remains doubtful. “Not in the foreseeable future,” he says. “Most colleges build their budgets on four-year cycles, so even if things begin to shift, you’re likely not seeing major changes until much later, unless there are significant drops in enrollment.”
While some undergraduate institutions have begun adjusting sticker prices, Moore points out that lower tuition often comes alongside reduced financial aid. “We’re seeing that already at the undergraduate level,” he explains. “Schools lower the price, but they also pull back on scholarships and institutional aid. That could happen at the graduate level, too. And even if costs do come down, students will still have to figure out how to cover the gap.”
Strategies for Navigating the New Financial Landscape
With federal loan access tightening, Moore encourages students and families to think more strategically about how they approach both undergraduate and graduate education.
“One of the biggest things I’d recommend is finding an undergraduate program that’s equal or better in quality than some of the elite, high-priced schools people tend to chase,” he says. “Get a more affordable undergraduate degree and save some of your resources for graduate school.”
Moore also emphasizes the importance of long-term financial planning, both at the family level and through employment opportunities.
“From a family standpoint, start setting aside money earlier and consistently, ideally balancing college savings with retirement planning,” he explains. “And when you’re working, look for employers who are willing to help fund graduate education. That kind of support may become more common as workforce shortages grow.”
He adds that students should pay close attention to colleges facing enrollment challenges, as this may open the door for more flexible pricing.“Keep your eye on schools whose enrollments are fluctuating and that need students,” Moore says. “Be willing to negotiate the price of education. I think that’s going to become much more common moving forward.”
For those who do turn to private education loans, Moore advises researching lenders carefully, particularly those offering benefits tailored to healthcare and education professionals. “If you go into the private loan sector, look for programs that offer repayment perks,” he says. “Some nonprofit lenders offer things like a six-month payment break after graduation for nurses, nurse practitioners, and other healthcare graduates while they get settled into their careers.”
Ultimately, Moore says the reality is that fewer federal resources mean students will need to be more proactive and creative about financing their education.“The lack of access doesn’t eliminate the need for advanced degrees,” he explains. “It just means people will have to find new ways to pay for school, whether they’re going full-time or part-time.”
Kimmy Gustafson
WriterAt HealthcareDegree.com, Kimmy Gustafson has delivered in-depth and insightful articles since 2019, aiding prospective students to navigate the complexities of choosing the right healthcare degree. Her recent work includes topics such as the ethics of gene editing and physician assistant’s fight for autonomy.
Kimmy has been a freelance writer for more than a decade, writing hundreds of articles on a wide variety of topics such as startups, nonprofits, healthcare, kiteboarding, the outdoors, and higher education. She is passionate about seeing the world and has traveled to over 27 countries. She holds a bachelor’s degree in journalism from the University of Oregon. When not working, she can be found outdoors, parenting, kiteboarding, or cooking.