Education Department Proposal Sparks Concerns Over Student Loan Limits for Teachers
A proposed regulation by the U.S. Department of Education is raising alarms among education groups, who fear it could exacerbate teacher shortages by limiting federal loan access for those pursuing advanced degrees. The debate centers on how the Biden administration defines “professional” degrees under the 2018 One Big Attractive Bill Act, impacting graduate student loan eligibility.
Understanding the One Big Beautiful Bill Act and Loan Limits
The One Big Beautiful Bill Act, signed into law in July 2025, established different annual and total borrowing limits for graduate students based on whether their degree field is considered “professional.” Students in designated professional fields can borrow up to $50,000 annually with a $200,000 total limit, whereas those in other fields face lower caps of $20,500 annually and $100,000 total. The law also stipulates prorated borrowing limits for part-time graduate students based on their course load. Federal Student Aid provides information on loan forgiveness programs.
Why Education Isn’t Currently Defined as “Professional”
The law itself doesn’t provide a definitive list of “professional” degrees, leaving the Education Department to define the term through rulemaking. The proposed regulation currently limits professional degrees to eleven fields: pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, theology, and clinical psychology.
According to the proposed regulation, while most states require teachers to obtain a master’s degree to maintain their license, a master’s degree in education (M.Ed.) or similar is not required to commence working as a teacher. Similarly, an Ed.D. Is not a prerequisite for licensure in the field. The U.S. Department of Education offers resources for managing student loans.
Concerns from the Education Community
Education advocates argue that excluding education from the list of “professional” degrees undervalues the profession and will hinder efforts to address critical teacher shortages. They point out that graduate degrees are often required for roles like principals, and superintendents. A coalition of 14 education organizations, led by the American Association of Colleges for Teacher Education (AACTE), warned that limiting loan access could lead to reduced enrollment in graduate education programs, increased dropout rates, and fewer qualified educators.
The AACTE analysis of federal data revealed that in the 2019-20 school year, half of education graduate students attended part-time, and 47% of those half-time students borrowed an average of $12,000 annually – an amount that could exceed the proposed limits under the new regulation. The Consumer Financial Protection Bureau offers a guide for teachers with student debt, including information on Public Service Loan Forgiveness (PSLF).
Impact on Loan Forgiveness Programs
Education groups also express concern that limited access to federal loans could force students to rely on private loans, which are often ineligible for public service loan forgiveness programs like PSLF. Debt.com provides information on Teacher Loan Forgiveness, which offers up to $17,500 in forgiveness for eligible teachers who teach full-time for five consecutive years at a low-income school.
What’s Next?
The Education Department is currently reviewing the 80,758 comments received on the proposed regulation and will issue a final rule, potentially as early as July 1. The final rule will determine whether education is included as a “professional” degree field, impacting the financial accessibility of graduate education for aspiring teachers and school leaders.