Oregon public universities are reporting enrollment pressure in some graduate health-care and education programs as students struggle to interpret new federal borrowing limits, temporary court-ordered exceptions and the end of Graduate PLUS loans for new borrowers.

At a Portland discussion convened Tuesday by Democratic Rep. Suzanne Bonamici, university and labor leaders said prospective students had delayed decisions, reconsidered programs or concluded that they could not finance their degrees. Oregon State University’s graduate education program is among those expecting lower fall enrollment, according to state reporting, while officials at Oregon Health & Science University said financing uncertainty is affecting students preparing for advanced nursing and other clinical careers.

The changes stem from the tax and spending law signed by President Donald Trump in July 2025 and implementing regulations that largely took effect July 1, 2026. For most new graduate borrowers, federal Direct Unsubsidized Loans are now limited to $20,500 per academic year and $100,000 across graduate study. Students in qualifying professional programs may borrow as much as $50,000 annually and $200,000 overall.

The law also phases out Graduate PLUS loans for new borrowers. Those loans previously allowed graduate and professional students to borrow up to a school’s published cost of attendance after other financial aid was applied. Although Graduate PLUS carried relatively high federal interest rates and fees, it offered federal repayment and borrower protections that are generally unavailable through private lenders.

Students who were enrolled in a program by June 30 and had already received a qualifying Direct Loan may fall under a temporary legacy exception during their expected time to complete the credential. New students entering after July 1 generally face the new framework. The distinction has produced difficult cases for people who deferred admission, changed programs, transferred institutions or were still completing financial-aid requirements as the rules took effect.

Additional uncertainty comes from the federal government’s definition of a professional degree. The Education Department’s original final rule placed several expensive and highly specialized programs outside the higher professional borrowing category. Nursing, physical therapy, occupational therapy, speech-language pathology, physician-assistant education and some psychology programs were among the fields that challenged the classification.

U.S. District Judge Beryl Howell temporarily stayed part of the department’s definition in June, finding that the agency had added requirements that Congress had not authorized. The decision did not invalidate the new borrowing caps or restore Graduate PLUS loans. Instead, it required the department to reconsider which programs could use the higher professional limits while the case continues.

Federal Student Aid subsequently issued an interim list that temporarily treats several additional programs as professional degrees. The list includes qualifying master’s and doctoral nursing programs, nurse anesthesia, physical and occupational therapy, physician-assistant studies, speech-language pathology, audiology and several clinical or counseling psychology degrees.

That update provided additional borrowing capacity for some students, but it did not eliminate uncertainty. The Education Department said the designations were temporary and could change as litigation proceeds. It also advised colleges that they might consider limiting borrowing to the lower graduate caps in temporarily reclassified programs to reduce disruption if the legal status changes again.

For students, the practical question is whether they can rely on the higher limit for the entire degree. A first-year nursing or therapy student could begin a multiyear program under one classification and face a different federal limit later if the government prevails in court or issues revised regulations. University financial-aid offices must explain those possibilities without knowing the final legal outcome.

OHSU officials told Bonamici that some incoming students do not have co-signers needed for private loans. Others are concerned that private borrowing may carry higher interest rates, fewer repayment protections or underwriting requirements that exclude students without established credit. Those obstacles can be especially significant for first-generation students and people from lower-income households.

Part-time students face another complication. Under the new system, annual loan amounts may be prorated according to enrollment intensity. Oregon education leaders said many of their graduate students attend part time while working in schools or completing professional requirements. Reduced borrowing tied to credit hours can therefore affect students whose living and educational expenses do not decline proportionally when they take fewer classes.

The potential consequences extend beyond individual campuses. Oregon, like many states, is trying to train more nurses, mental-health professionals, educators and other workers for rural and underserved areas. Graduate programs often require supervised clinical work, specialized faculty, accreditation expenses and placements with hospitals or community organizations, limiting how quickly institutions can cut costs in response to lower federal loan ceilings.

The administration and congressional Republicans have defended the overhaul as a way to curb excessive debt and change incentives in higher education. The Education Department argues that unlimited access to Graduate PLUS financing allowed institutions to raise prices without adequately considering whether graduates’ earnings would support repayment. Federal officials say new caps can encourage universities to reduce tuition, redesign expensive programs and provide students with clearer information about debt and expected earnings.

Oregon university leaders told Bonamici they did not expect the caps to produce immediate tuition reductions. They said institutions are more likely to see students seek private credit, reduce their course loads or leave the enrollment pipeline. Tuition is also only one component of attendance costs; students may need financing for housing, transportation, licensing requirements, equipment and unpaid clinical training.

Bonamici and Oregon Sen. Jeff Merkley have backed a Congressional Review Act resolution seeking to overturn the Education Department’s final rule. Supporters of the resolution argue that the lower limits unfairly burden nursing, social work, counseling, education and other public-service fields. The effort faces a difficult path in a Republican-controlled Congress and would require presidential approval or enough votes to override a veto.

Separate legal challenges remain pending, including litigation brought by professional associations and Democratic-led states. Those cases could alter the professional-degree definition or other parts of the loan regulations, but universities must make enrollment and financial-aid decisions under the rules currently in place.

For Oregon institutions, the immediate concern is that even temporary confusion can produce lasting consequences. Students who decline an offer this summer may not return if a court later expands their eligibility. Programs that lose a cohort may reduce staffing or clinical placements, affecting how many students they can train in subsequent years.

No statewide total has yet established how many Oregon graduate students have abandoned or postponed their plans specifically because of the federal overhaul. University leaders nevertheless say the early enrollment signals are serious enough to warrant attention, particularly in fields where the state cannot easily replace workers who were never trained.