With Federal Loan Changes Looming, New Mexico Steps Up to Help Nursing Students
- In light of the proposed changes to graduate nurse degree loan limits, New Mexico has shared some of its financing options.
- For instance, the state offers programs such as up to 100% loan forgiveness in shortage areas, as well as other loan-for-service scholarship options.
- Prospective students can learn more and apply for the programs on the New Mexico Higher Education Department website.
New Mexico's Department of Higher Education offers several loan repayment and forgiveness programs for both undergraduate and graduate nursing programs.
As you may have heard by now, with the passage of the "One Big Beautiful Bill Act" (OBBBA), graduate nursing students may face reduced federal borrowing options starting July 2026.
The news has been troubling to many, but New Mexico has shared a potential solution for students looking to pursue careers in nursing. For instance, they have programs like the loan-for-service scholarship that gives free school funding in exchange for working in the area, or a loan repayment option that gives up to $25,000 annually.
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What’s Changing with Federal Loans?
Starting in 2026, graduate nursing degrees will be classified as "non-professional" for federal loan purposes. This means lower borrowing limits—$20,500 annually with a lifetime cap of $100,000.
In comparison, medicine, dentistry, and pharmacy degrees retain their $50,000 annual limit and $200,000 lifetime cap. Grad PLUS loans? Gone.
Some proponents of the bill have claimed nursing students borrow less than these new caps, but nursing organizations worry this could worsen the already critical nurse shortage. Reduced financial options might make advanced practice nursing unattainable for many.
New Mexico’s Financial Assistance Programs
While federal options tighten, New Mexico is stepping up to support nursing students. Stephanie Rodriguez, cabinet secretary for the New Mexico Higher Education Department, highlighted several programs aimed at easing the financial burden:
- Healthcare Student Loan Repayment Program: This program offers up to $25,000 annually for three years to graduates who work in New Mexico’s healthcare sector.
- Loan-for-Service Scholarship: This option provides up to $8,000 per academic year, and if students complete their program and serve in New Mexico, they don’t have to pay it back.
- The Nursing Loan for Service Program: Offers total loan forgiveness for nurses working in shortage areas. For every year of service, a portion of the loan is forgiven, with the potential for 100% forgiveness over time.
There are also other programs, including a reimbursement program for nurse educators, all available on the New Mexico Department of Higher Education's website.
Expanded Programs Offer Hope
Since 2019, New Mexico has significantly expanded these programs. For example, the health professional loan repayment program grew from 22 awardees to over 1,200—a 3,500% increase.
Other initiatives include scholarships for nurse educators, loans for allied health students, and programs allowing students to attend out-of-state schools if New Mexico doesn’t offer their program.
If you’re a nursing student concerned about federal loan changes, now is the time to explore state-specific options. Financial aid offices in New Mexico—and likely other states—are ready to help.
While the new federal loan rules may feel like a setback, states like New Mexico are working hard to ensure nursing students can still pursue their dreams. You can learn more at the New Mexico Department of Higher Education's website, under financial aid.
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