The DOE’s “professional” degree reclassification: Who’s impacted & how?

You worked hard for your degree – long nights studying, demanding clinicals, and years of commitment to your craft. Now, a proposed change from the U.S. Department of Education could make it harder for future clinicians to follow that same path.

The DOE’s proposed rule to reclassify many advanced degrees is more than just a change in semantics – it can have a real impact on the cost and accessibility of certain professions. Let’s break down what’s happening, who’s impacted, and what you can do.

What exactly happened?

In late 2025, the Department of Education surprised many by proposing a new rule to change how some degrees are labeled for federal student loans. Instead of classifying degrees like OT, PT, SLP, nursing, counseling, and social work as “professional,” the department wants to reclassify them as “graduate” degrees.

The primary consequence of this change is financial. Students in programs currently labeled as “professional” can borrow more through the Grad PLUS loan program. Reclassifying these programs as “graduate” would lower borrowing caps, potentially creating a significant gap between available federal aid and the actual cost of tuition. This could make it much harder for students in these fields to afford their education.

Right now, this isn’t official. The policy has only been proposed and is still moving through the rulemaking process. Here’s where things stand:

• The Department put forward its proposed rule in November 2025 as part of the One Big Beautiful Bill Act (OBBBA).
• Nothing has changed for current or new students yet. The new definitions and lower loan limits only go into effect if the rule is finalized and would apply to new borrowers, starting July 1, 2026.
• Next up: An official Notice of Proposed Rulemaking is expected in early 2026. There will also be a public comment period, so advocacy groups and individuals can weigh in before anything is set in stone.

 

Who is affected by this change?

This proposed reclassification doesn’t just impact one or two fields. It affects many professionals who need advanced degrees to get licensed and practice, including:

• Physical Therapy (DPT)
• Occupational Therapy (OTD, MOT)
• Speech-Language Pathology (Master’s)
• Audiology (AuD)
• Counseling (Master’s)
• Social Work (MSW)
• Nursing (Master’s, DNP)
• Public Health (MPH)
• Art & Music Therapy (Master’s)

Why does this matter so much to clinicians?

The strong reactions from therapists and other clinicians stem from several deep-seated concerns. Discussions in forums like Reddit show that this isn’t just an abstract policy debate; it hits close to home.

1. The student debt dilemma

The most immediate worry is the financial barrier this creates. As one Reddit user noted about their OT program, “OT school cost me $130k, and I took out mostly grad plus loans.” Without access to higher federal loan limits, future students might have to turn to private loans with higher interest rates and less flexible repayment options. This financial pressure could make these careers inaccessible for many, especially those from less privileged backgrounds, which in turn hurts the diversity of the profession.

However, the conversation is nuanced. Some clinicians see a potential, if painful, silver lining. One commenter wondered if this might force universities to address skyrocketing tuition costs. If students can no longer borrow enough to cover the price tag, will schools be forced to become more affordable? It’s a complex issue, as another user pointed out, “The real issue is the COST OF TUITION and the fact that universities are predatory.”

2. A question of professional respect

This reclassification feels like a step backward for professions that have fought for decades to elevate their educational standards. The move to doctoral and master’s-level entry was a deliberate effort to ensure clinicians have the skills for a complex healthcare system. To have this rigor seemingly dismissed by a bureaucratic definition is frustrating.

This sentiment is shared by professional organizations. The American Physical Therapy Association (APTA), American Occupational Therapy Association (AOTA), and American Speech-Language-Hearing Association (ASHA) have all argued that the DOE’s definition of a “professional” degree is outdated. They contend that since these advanced degrees are required for licensure and entry into the field, they should be classified as professional. (The DOE’s current definition of a “professional degree” dates back decades and mainly include fields like medicine, law, and dentistry.)

3. The impact on client care

Ultimately, barriers to the profession can impact the quality and availability of care. A less diverse workforce is less equipped to provide culturally competent, whole-person care to an increasingly diverse population. If the pipeline of talented therapists, counselors, and social workers is restricted, it’s the clients who may eventually feel the effects.

4. Workforce shortages

The ripple effects continue. If fewer people can afford to enter these fields, the pipeline of new clinicians shrinks. That’s a serious concern at a time when many practices already struggle with staffing shortages.

Is anything being done to fight the DOE reclassification?

Yes. The good news is that the clinical community has mobilized. Professional organizations like the APTA, AOTA, ASHA, and the National Association of Social Workers (NASW) have launched strong advocacy efforts.

Their actions include:

• Submitting formal public comments to the Department of Education.
• Launching grassroots campaigns to help members contact their legislators.
• Educating the public and policymakers on the importance of these professions and the rigor of their educational programs.

This unified front is a powerful step toward ensuring the industry’s concerns are heard. You can learn more about what each organization is doing here:

• American Physical Therapy Association (APTA)
• American Occupational Therapy Association (AOTA)
• American Speech-Language-Hearing Association (ASHA)
• National Association of Social Workers (NASW)

What can you do now and for the future?

While the final outcome is still uncertain, you can take steps to stay informed and prepared:

• Follow your professional association: Organizations like the ones listed above are leading advocacy efforts. Their updates and alerts will help you understand what’s happening and how to respond.
• Add your voice: Participate in campaigns to contact lawmakers or submit comments during the public comment period. Sharing your experience with education costs and why accessibility matters can make a real impact.

If you’re still in school:

• Plan ahead financially: Stay on top of federal loan limits and explore scholarships, employer tuition assistance, and state loan forgiveness programs early.

If you’re mentoring:

• Stay focused on your practice: Continue delivering excellent care and look for ways to simplify operations so you have time and energy to engage in advocacy when needed.
• Support future clinicians: If you mentor students or new grads, offer guidance on navigating financial challenges and reinforce the value of their career choice.

This is a challenging moment, but it’s also an opportunity to come together and advocate for the respect and resources your professions deserve.