USDOE Proposes Changes to Graduate Degrees

Pursuant to provisions of H.R.1, the U.S. Department of Education (DOE) recently issued a Notice of Proposed Rulemaking limiting graduate federal students loans. The proposed changes that may result in several graduate degrees, including nursing, social work and some counseling degrees, no longer being classified as “professional” programs. This change would limit the maximum available loan amounts for graduate students pursuing advanced degrees in these fields.

The proposal would limit the annual amount of public loans an individual can obtain for graduate degrees to $20,500 per year and $100,000 over the course of one's lifetime. Medicine, osteopathic medicine, podiatry, chiropractic, optometry, pharmacy, dentistry, veterinary medicine, law, theology and clinical psychology would still be considered professional degrees, for which students can receive up to $50k per year and $200k total in public loans. Previously, graduate students could borrow up to the cost of attendance.

The DOE asserts on their “Myth vs. Fact” webpage that limiting the amount of loans available to degree programs with “modest earning potential” will drive down the prices of these degree pathways, citing that universities have irresponsibly raised tuition prices; and asserts that those who are concerned that this will have a negative impact on workforce challenges are engaging in “fear mongering” tactics. They claim that, while it is not yet in effect, the Act’s federal loan caps are already reigning in inflated prices of graduate programs across the country.

Nevertheless, the Ohio Council submitted comments urging the DOE to reconsider the classification of behavioral health (BH) graduate programs, and to continue recognizing them as professional degree programs and essential health and human services pathways; citing that such changes would make it harder to obtain a degree in BH-related fields, further exacerbating the mental health workforce crisis. You have the opportunity to comment on this proposed rule by Monday, March 2. You are welcome to use our comments as a template. When you're ready to submit your comment, follow the green “Submit a Public Comment” button on the proposed rule’s Federal Register page and follow the instructions.

Related resources providing additional background information include a summary of the proposal from Inside Higher Ed, a press release from DOE, and some information from NASW FL. If the rule is finalized, it would be effective July 1, 2026.