Washington – The American Health Care Association/National Center for Assisted Living (AHCA/NCAL) has submitted comments to the Department of Education expressing concerns over a proposed rule that could limit federal student loan forgiveness eligibility for healthcare professionals, including those working in nursing homes. The organization, representing nearly 37,500 member organizations and providers, argues the rule could significantly impact access to care for a growing elderly population.
At issue is a potential change in how the Education Department defines a “professional degree” for the purposes of the Public Service Loan Forgiveness (PSLF) program. According to AHCA/NCAL, the proposed rule could exclude certain health practitioner degrees – specifically mentioning advanced practice nurses, physical therapists and occupational therapists – from qualifying for loan forgiveness. This change would directly affect the amount of loan relief available to these professionals, potentially discouraging them from working in fields already facing critical staffing shortages.
Concerns Over Impact on Long-Term Care Workforce
The long-term care sector is grappling with a severe workforce crisis, a challenge exacerbated by the demands of an aging population. The Notice of Proposed Rulemaking (NPRM), published January 30, 2026, has prompted widespread concern among healthcare advocacy groups. AHCA/NCAL believes excluding certain degrees from PSLF eligibility will worsen the existing staffing challenges in nursing homes and other long-term care facilities.
“Access to qualified healthcare professionals is already a major concern, particularly in rural areas and underserved communities,” said a spokesperson for AHCA/NCAL. “Limiting loan forgiveness options for these essential workers will only exacerbate the problem, potentially leading to reduced access to care for millions of Americans.”
Understanding the Public Service Loan Forgiveness Program
The Public Service Loan Forgiveness program, established in 2007, is designed to encourage individuals to enter and remain in public service professions by forgiving their federal student loan debt after 120 qualifying payments. The program is particularly important for healthcare professionals who often seize on significant student loan debt to finance their education. Eligibility requirements include working full-time for a qualifying employer – which includes many non-profit and government organizations – and making qualifying loan payments under a qualifying repayment plan.
Recent updates to the PSLF program have aimed to streamline the application process and expand eligibility, but the proposed rule regarding degree definitions threatens to undo some of that progress. The Department of Education has been under pressure to address issues with the PSLF program, including past errors in processing applications and inconsistent guidance on eligibility requirements. Updates on federal loan eligibility for nurses and others have been closely watched by healthcare organizations.
The Deadline for Comments
The deadline to submit comments on the NPRM is Monday, March 2, 2026. AHCA/NCAL is urging its members and other stakeholders to submit their own comments to the Education Department, outlining the potential negative consequences of the proposed rule. The organization has provided a template for submitting comments on its website.
The proposed rule is part of a broader effort by the Biden administration to “reimagine and improve” student education, according to the Department of Education. However, critics argue that the changes could have unintended consequences, particularly for essential healthcare workers.
What’s Next?
Following the comment period, the Department of Education will review the feedback received and decide whether to finalize the proposed rule. If finalized, the changes could take effect in the coming months, impacting the eligibility of future borrowers for the PSLF program. The Department has not yet announced a timeline for its decision. Stakeholders are closely monitoring the situation and preparing for potential legal challenges if the rule is finalized in its current form.
The debate over student loan forgiveness and its impact on the healthcare workforce is likely to continue, as policymakers grapple with the challenges of balancing the needs of borrowers with the demands of a rapidly changing healthcare landscape. The outcome of this particular rule could have significant implications for the future of long-term care in the United States.
Disclaimer: This article provides information for general knowledge and informational purposes only, and does not constitute financial or legal advice.
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