Authored by Candis Miller, Healthcare Solutions & Strategy Director at InStride
Beginning July 2026, federal graduate lending will look different. The One Big Beautiful Bill Act (OBBBA), signed in 2025, restructures federal financial aid for graduate and professional programs by eliminating Grad PLUS loans and capping how much students can borrow.
What you need to know: OBBBA also creates a much narrower list of “professional degrees” eligible for higher borrowing limits. Many high-need fields, including nursing and other allied health programs, are no longer classified as professional degrees and therefore fall under the lower cap.
For employers, this shift raises an important question: Will your current and future employees still be able to afford the degrees your talent strategy depends on?
This guide breaks down what’s fact, what’s fiction, and what these changes mean for workforce planning in fields that rely on graduate training.
FICTION #1: This won’t affect most graduate students
FACT: A large share of graduate students have historically borrowed more than the $20,500 cap in a single year, and many programs exceed that amount before factoring in living costs. These limits create funding gaps, and risk deterring people from entering high-need fields like nursing, public health, education, and allied health professions.
Why employers should care: If your roles require graduate training, fewer employees, and fewer prospective workers overall, may be able or willing to pursue those pathways.
FICTION #2: Private loans will make up the difference
FACT: Private loans require good credit or cosigners, charge higher interest rates (often 10-15%), and lack income-driven repayment protections. Many working adults don't qualify or face unaffordable terms.
What this means for employers: Financial barriers could shrink your internal talent pipeline and the broader talent pool.
FICTION #3: This is mainly a healthcare issue
FACT: While healthcare fields are hit hardest because of their credentialing structure, the loan caps affect employees across all sectors pursuing graduate education.
Fields likely to be affected:
- Licensed and credential-dependent professions (e.g., nursing, public health, therapy and counseling programs, social work)
- Graduate programs tied to regulated or advancement-based careers (e.g., accounting, business, human services, education leadership)
- STEM and technical master’s programs with high tuition and strong ROI expectations (e.g., engineering, computer science, data science, cybersecurity)
- Any graduate program delivered in high-cost metro areas (where living expenses alone can exceed federal borrowing limits)
Why this matters for employers: Many of these professions already face staffing pressures. Reduced borrowing power makes pathways into these careers less accessible and less attractive to those just starting out.
FICTION #4: Current employees in grad school will lose funding mid-program
FACT: Students who begin programs before July 1, 2026 will be grandfathered into the old lending rules for up to three years or until completion.
What this means for employers: Employees who plan to pursue new graduate credentials in 2026 and beyond are the ones who will face tighter borrowing limits, which may reduce the number of people entering or advancing into roles that require these degrees. That’s your future talent pipeline at stake.
What employers should do now
1. Communicate clearly
Provide employees a simple explanation of what changes in 2026 and who will be affected. Clarity reduces anxiety and helps people plan.
2. Know which roles rely on graduate degrees
Map the programs tied to your critical roles and compare their typical costs to the new borrowing caps. This helps you anticipate where future talent may face barriers and need employer support.
3. Offer some form of education support
Offering education benefits is no longer just about offsetting tuition costs, it’s about intentionally investing in the skills and credentials your business needs to operate and grow. In an environment of tighter federal lending, employer-backed education gives employees the confidence to pursue critical roles without taking on unsustainable financial risk.
In fields like nursing and allied health, career growth happens in steps. Supporting early credentials, prerequisite coursework, or targeted certificates allows employees to progress deliberately—building needed competencies today while preserving borrowing capacity for later licensure or advanced degrees.
Why this matters now
OBBBA’s lending changes could reshape how students pursue graduate and professional education. In many fields, the new caps introduce financial constraints on career advancement, licensure, and long-term workforce development.
Put another way: funding gaps could soon price your talent out of the very programs you need them to complete.
Organizations that understand these changes, and help employees navigate them, will be better positioned to attract, retain, and grow talent in roles where demand is only increasing.
Want to discuss how OBBBA affects your specific industry or talent strategy? We’re here to help.
