Nurse Student Loan Debt Exceeds Proposed $100K Cap for 30% of Michigan APNs
- A comprehensive University of Michigan study of 9,570 nurses reveals alarming debt levels across the profession.
- Over a third of Michigan nurses already have student loan debt levels that exceed the new proposed loan cap of $100,000.
- Experts say the high levels of student loan debt could hold back nurses from entering advanced practice roles, going into teaching, or staying in the profession altogether.
Nearly 28% of registered nurses and 33% of advanced practice nurses in Michigan carry substantial student loan debt, according to a comprehensive University of Michigan study. Because Michigan is the eighth state in the nation for Registered Nurses, the data is important, the study's researchers concluded.
The debt carried by both bedside and advanced practice RNs not only impacts their careers and family lives, but it also limits the number of nurses who will go on to teach, which experts say is a large concern. Academia can be lower-paying, so with high debt in place, nurses are more apt to steer clear of education.
Over One-Third of Nurses in MI Owe Over $100,000
The Michigan study of 9,570 nurses revealed that advanced practice nurses (APNs) face a median debt burden of $66,420, with almost 29% owing more than $100,000.
This finding is particularly alarming as proposed federal legislation, effective July 1, 2026, will reclassify graduate nursing programs as "nonprofessional," imposing severe borrowing restrictions, including a $100,000 lifetime cap, half the amount allowed for medicine and law programs.
"Nearly a third of advanced practice nurses had loan balances that exceeded the proposed lifetime cap," noted study principal investigator Christopher Friese, Ph.D., R.N., the Elizabeth Tone Hosmer Professor of Nursing at the University of Michigan. (The current proposed loan cap is $100,000).
"Placing this cap would likely limit the entry of current nurses into APN programs, threatening the ability to deliver primary care, obstetrical care, specialty care and having enough faculty to teach nursing students in the future," he added.
How Nurses' Student Debt Affects the Workforce
The research demonstrates a clear correlation between educational debt and workforce retention. For instance:
- Among nurses who had recently left or were planning to leave their positions, 51% of those with debt cited inadequate pay and benefits as the primary reason.
- Conversely, only 10% of their debt-free colleagues reported the same.
- 74% of indebted nurses identified family finances as a top concern, compared to just 39% of nurses without debt.
The financial reality varies significantly by degree level. According to the American Association of College of Nurses (AACN), 76% of nurses pursuing graduate degrees have undergraduate loans already, with 69% also taking out loans to afford their graduate degrees.
The average student loan debt for graduate nurses was between $40,000 and $53,000. However, around 12% had debt over $100,000. And the majority reported concerns about paying back their debt.
Student Debt Could Also Impact the Future of Nursing
Healthcare experts warn the proposed caps could block RN advancement and impact the future by:
- Fewer nurses able to further their education into advanced practice roles
- Reducing nursing faculty availability
- Exacerbating shortages in primary care, obstetrics, and underserved areas
The debate around these caps continues. Supporters argue they will force educational institutions to reduce inflated tuition costs, noting that 95% of current nursing students borrow below the proposed limits. Critics, including over 140 bipartisan Congress members, contend the policy fails to recognize nursing's professional status and could devastate healthcare access when the nation faces critical nursing shortages.
"If we want a robust health care workforce, we should be giving maximal flexibility to nurses, not curtailing opportunities," Friese said. "That includes recognizing graduate nurses as professionals who are eligible for the full array of loan programs, and expanding loan repayment programs to support retention of health care workers in key areas across the United States."
The study authors suggest that several steps could be taken to lower student loans for future nurses in Michigan and beyond, such as:
- Health systems could partner with nursing schools to provide tuition discounts and long-term financial support as recruitment and retention tools.
- Reconsider loan caps for advanced degrees as they could discourage RNs from becoming nurse practitioners or educators, further stretching an already strained healthcare system.
- Expand loan repayment programs.
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