Federal Student Loan Changes under the One Big Beautiful Bill Act Took Effect July 1, 2026

Yesterday marked the start of federal student loan changes under the One Big Beautiful Bill Act (OBBBA) which was signed into law in July 2025. Under the new changes, those taking out a federal loan for a professional degree are restricted to $50,000 per year ($200,000 aggregate). On May 1, 2026, the U.S. Department of Education (ED) published a final rule providing a list of programs that qualify as “professional degrees.” This list includes Medicine (M.D.) and Osteopathic Medicine (D.O.) but excludes other healthcare programs like nursing and physician assistant degrees.

In May, a coalition of states and nursing organizations filed separate lawsuits challenging the ED’s list of “professional degree” programs. On June 24, 2026, the U.S. District Court for the District of Columbia preliminarily stayed part of ED’s professional degree definition. As a result of this court order, some programs previously classified as professional degree programs will no longer be considered professional degree programs, while other programs that were not previously classified as professional degree programs will be treated as such for the duration of the stay. Nursing, physician assistant, and other healthcare programs were added to the interim list of professional degree programs, but this could change as litigation in the case proceeds.

As we continue to monitor developments related to OBBBA and the pending litigation, current and prospective students seeking degrees in healthcare should carefully research their financing options and take advantage of scholarships, including those offered by community organizations, foundations, employers, and professional associations.