Starting July 1, 2026, the United States Department of Education (ED) will update the list of major degrees considered “professional” under its new definition. This change limits the student loan options in the excluded career fields. Under this new definition, programs including nursing, physician assistant, social work, and education are being excluded. This will affect student loan opportunities for students following these careers, which is triggering financial worries for many.
What does the Department of Education do?
The United States Department of Education’s mission is “to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access.” The ED was established by Congress on May 4, 1980, in the Department of Education Act, signed into law by President Jimmy Carter. Under this act, the ED’s mission is to “Strengthen the Federal commitment to assuring access to equal educational opportunity for every individual; supplement and complement the efforts of states, the local school systems and other instrumentalities of the states, the private sector, public and private nonprofit educational research institutions, community-based organizations, parents, and students to improve the quality of education; encourage the increased involvement of the public, parents, and students in Federal education programs; promote improvements in the quality and usefulness of education through Federally supported research, evaluation, and sharing of information; improve the coordination of Federal education programs; improve the management of Federal education activities; and increase the accountability of Federal education programs to the President, the Congress, and the public.”
What is a professional degree?
A professional degree is “a specialized academic qualification that prepares you for a specific profession, focusing on practical skills and hands-on training for immediate entry into a career like law, medicine, or dentistry.” These degrees frequently meet the academic requirements for professional licensure and can be at the undergraduate or graduate level.
Where does this new law come from?
This new law begins with President Donald Trump’s “Big Beautiful Bill” but continues through the Department of Education itself. The ‘One Big Beautiful Bill Act’ (OBBBA), Section 81001, revises the types of federal student loans available to borrowers under the Direct Loan program and the borrowing limits for these loans. This section also terminates the ability of graduate or professional students to receive Direct PLUS Loans. To accommodate this bill, the Department of Education decided it would be best to change the requirements and regulations of what professions are eligible. The full list of jobs now no longer classed as “professional” includes, but is not limited to, Nursing, Physician assistants, Physical therapists, Audiologists, Architects, Accountants, Educators, and Social workers. These programs are now excluded from the classification of higher loan limits. But degrees such as Medicine, Pharmacy, Dentistry, Optometry, Law, Veterinary Medicine, Osteopathic Medicine, Podiatry, Chiropractic, Theology, and Clinical Psychology are still considered professional. These programs still have access to student loans of around $200,000. This is a proposed change by the ED regarding the eligibility of federal student loans, not a change in the nature of the work itself or professional licensure.
Why these jobs?
The reasons the ED states are behind this reclassification include cost management, administrative definition, and policy implementation. The Department claims that the redefinition is intended to prevent students from accumulating “insurmountable debt to finance degrees that do not pay off” and to force college institutions to lower their prices. They also stated it was to implement new student loan limits from the “One Big Beautiful Bill Act” (OBBBA), which aims to cap the borrowing amount for most grad students at $100k instead of $200k for “professionals.”
Why does it matter?
This is important because the federal definition will control which graduate programs qualify for a higher “professional program” loan cap, starting on July 1, 2026. Degrees meeting the new criteria are eligible for higher federal loans, which can range from $50,000-$200,000 total. Students in programs that are not eligible are capped at a much lower amount, $20,500-$100,000 per year. This is also important because of the elimination of Grad PLUS Loans, which previously allowed graduate students to borrow up to the full cost of their tuition and attendance. This new definition only allows this for students with the higher loan caps. Another worry is that due to the reduced financial aid, students will be discouraged from entering these fields, leading to workforce shortages.
It has also been speculated that this reclassification is a symbolic message that the government devalues certain careers, many of which are historically dominated by women.
How are these jobs important to society?
These jobs are the invisible gears that our society depends on. Blue-collar jobs and essential workers help communities run smoothly. Blue-collar workers like construction workers, electricians, plumbers, and garbage collectors build and maintain our roads. Essential workers such as nurses, physical therapists, educators, and social workers provide direct care and support to the public. They are critical to public health, safety, and the development of future generations.
As of November 2025, the ED came out with a statement titled, “Myth v.s. Fact: The Definition of Professional Degrees.” In this press release, the ED tries to clear the air and ease the worries this change has caused, stating that, “President Trump’s One Big Beautiful Bill Act (the Act) placed commonsense limits on federal student loans for graduate degrees. These loan limits will help drive down the cost of graduate programs and reduce the debt students have to take out,” and that, “Under the Act, the agency is required to identify “professional degree” programs that will be eligible for higher federal lending limits.” Though this release talks about their non-bias toward nurses, and how they believe it will not impact them (or the other jobs now not classified), the people are still concerned about the financial strain and the potential workforce shortages that may occur in these fields.
