Yesterday, the U.S. Department of Education released its final rule defining “professional” degree programs and establishing new federal student loan caps. The rule was published today in the Federal Register. Effective July 1, the rule will significantly limit eligibility for the highest federal student borrowing levels to 11 designated fields, affecting access to graduate and professional education nationwide.
Students in these designated “professional” programs including pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, theology, and clinical psychology, may borrow up to $50,000 annually with a $200,000 lifetime cap. All other graduate programs are reclassified as “graduate” programs for federal loan purposes and are limited to $20,500 annually and $100,000 in total federal borrowing, regardless of discipline or workforce demand.
The rule has significant implications for health professions education and for allied health programs. A primary concern is that qualified students would be less likely to apply, enroll, and graduate from health professions education programs due to concerns around financing the cost of attendance. These concerns are particularly significant given the constraints and uncertainty associated with the private loan market. These changes will also have negative downstream impacts on the health workforce pipeline, exacerbating current and projected workforce shortages as health professions are among the fastest growing professions in the country.
ASAHP has voiced our concerns with the rule throughout the rulemaking process. ASAHP submitted comments on the proposed rule to the Department of Education and joined with our health professions education peers by submitting joint comments to the department from coalitions including the Advanced Professional Workforce Alliance (APWA), Federation of Associations of Schools of the Health Professions (FASHP), and the American Council on Education (ACE).
ASAHP will continue to review the final rule, monitor its implementation and engage with federal policymakers to convey its deleterious impact on health professions education, student access, and the health workforce. We will also continue our work with federal policymakers as well as our coalition partners to assess the impacts of the rule and plan our collective next steps. We will keep you informed of any developments.
A press release from the Department of Education with a link to the final rule may be accessed here along with their fact sheet here. A statement from House Education and Workforce Chair Tim Walberg (R-MI) is here and from Ranking Member Bobby Scott (D-VA) here. Coverage from Inside Higher Ed is here.