Education Department to Define 'Professional' Degrees, Affecting Student Loan Limits
The Education Department is set to tackle a contentious issue: defining 'professional' degree programs. This will determine how much student borrowers can lend, with significant differences between graduate and professional programs. The debate promises to be challenging, with high stakes and competing interests.
The department's initial proposal includes a broad catch-all clause, allowing the Secretary to add 'any other degrees' through rulemaking. The key issue lies in differentiating between graduate and professional degrees for future borrowers. Currently, professional programs include pharmacy, dentistry, medicine, and law, but some argue for a broader definition.
The department is expected to finalize its proposal after another session in November, opening the floor for public comment. The new loan caps, set to kick in July 1, 2026, will limit graduate program borrowers to $20,500 per year or $100,000 total, while professional program borrowers can lend more than double that. However, colleges and universities may not see the proposed rule until later this fall.
The department's initial proposal, sticking largely to the existing 10 programs but adding a catch-all clause, has sparked debate. If the committee fails to reach an agreement, the department is free to interpret the definition as it sees fit. Clarifying this definition is crucial, as it will significantly impact student borrowers' financial futures.
