- A new House bill would expand what is considered a “professional degree” for federal student loan purposes.
- The change comes as new borrowing limits for student loans begin in 2026, making the distinction between “graduate” and “professional” degrees even more important for students.
- Critics warn that the bill could undermine efforts to rein in graduate student debt by allowing up to $200,000 in federal loans for low-earning fields.
the Professional Student Degree Lawintroduced by Rep. Mike Lawler (R.N.Y.) and several other House Republicans, would expand the list of degrees considered “professional” under federal law. If passed, the change would allow students in dozens of graduate programs to borrow up to $200,000 in direct federal loans, double the cap that would otherwise have been in place.
The proposal comes amid criticism from industry trade groups and students over upcoming loan caps. Under last year’s One Big Beautiful Bill Act, Grad PLUS loans for new borrowers will be forgiven starting July 1, 2026.
Instead of unlimited borrowing for graduate school, there will be new limits on direct loans to graduates. These limits depend entirely on whether the program is classified as “Graduate” or “Professional”.
Why does the definition of professionals versus the definition of graduates matter?
Graduate programs have always had this classification, but before the OBBBA, it was used for statistical purposes only.
Starting in 2026, these definitions will be used to limit borrowing under the Direct Loan Program:
- Graduate students (Master’s programs and most doctoral programmes):
$20,500 per year, with a maximum of $100,000 for life. - Professional students (e.g. law and medical students):
$50,000 per year, with a maximum of $200,000 for life.
The political goal behind this change was to keep debt burdens more in line with earnings, while maintaining higher limits on the degrees that typically lead to high-paying jobs.
But this approach only works if the category of “professionals” remains narrow.
Many degrees that sound “professional” in everyday language (such as social work, physical therapy, or public health) have instead been treated as standard graduate programs, subject to a lower cap of $100,000. This has led to criticism from a classification perspective and from potential limitations for future students wishing to enter these fields.
What will the Student Professional Degree Act change?
Under the Student Professional Degree Law, the professional category will expand to include:
- Social Work (MSW and DSW)
- Nursing (MSN, DNP, and PhD)
- Physiotherapy (DPT)
- Occupational therapy (MOT and OTD)
- Physician assistant programs
- Public Health (MPH)
- Business Administration (MBA and DBA)
- accounting
- Build
- Education and special education
- Audiology
These new additions are in addition to those already included:
- Law (LLB or JD)
- Medicine (MD or DO)
- Pharmacy (Pharm.D.)
- Dentistry (DDS or DMD)
- Veterinary Medicine (DVM)
- Optometry (OD)
- Podiatry (DPM, DP, or Pod.D.)
- Clinical Psychology (Psy.D.)
- Chiropractic care (DC or DCM)
- Theology or Theology (MDiv or MHL)
The draft law also gives the Minister of Education the authority to add “any other degree” that meets general standards.
In practice, a student pursuing an MBA, MPH, MSW, or MEd could get an additional $100,000 in federal borrowing compared to current law.
Pros and cons
For students who will pursue graduate studies after 2026, the risks are high.
A student in a program classified as “graduate” will need to finance anything over $100,000 through savings, private loans, or employer support. A student in the “vocational” program can rely more heavily on federal loans, which offer income-driven repayment plans and loan forgiveness options that private loans do not.
Supporters of the bill argue that many of the newly listed programs are essential public service professions that require advanced training and incur high tuition costs.
Critics argue that taking on larger federal loans does not reduce the cost of higher education and may even encourage schools to raise it.
Earnings data confirms this concern. Programs that are currently treated as professional degrees tend to pay much higher wages. The average income five years after graduation in these fields is approximately $134,000, compared to about $75,000 for the programs included under the proposed expansion, according to the institute’s report. American Enterprise Institute.
This gap is important because repayment of federal loans is ultimately dependent on income. Borrowing $200,000 may be easy for a doctor or dentist, but it can be financially challenging for a social worker or teacher.
Wider political debate
Congress imposed limits on graduate loans primarily to limit what lawmakers saw as a feedback loop: unlimited borrowing allowed universities to raise tuition, while students took on debt they often could not repay.
The Congressional Budget Office estimates that the new loan caps will save taxpayers nearly $7 billion annually by reducing loan forgiveness and default costs.
Opponents of the Professional Student Degree Act argue that expanding the professional category to cover a large share of graduate programs would undo much of this progress. By some estimates, the bill’s definition could apply to approximately 70% of graduate student borrowers.
Proponents counter that earnings vary widely across fields, and that loan caps should not be the only tool for controlling higher education costs.
What will happen next?
The bill faces an uncertain path in Congress. While it has support from some lawmakers and higher education groups, it runs counter to the cost-containment logic that drove last year’s reforms.
For now, current definitions remain in place, and the end of Grad PLUS loans in 2026 is still approaching.
For students and families considering graduate school, the safest assumption is that borrowing will become more limited. This makes understanding program costs, future earnings, and repayment options more important than ever.
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