What counts as a professional degree for student loans?

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July 2026 update: If you're reading this after June 24, 2026, please note that the rules around which graduate programs qualify as "professional degrees" for federal student loan purposes have temporarily changed.

Due to a federal court order, some programs may currently be classified differently than what's described below, and the list may continue to change as the case moves forward.

For the latest information, visit StudentAid.gov/bigupdates and check with your school's financial aid office to confirm how your program is currently classified.

TL;DR 

• The Department of Education named what counts as a professional degree for federal student loans, now excluding professions in architecture, engineering, physical therapy, occupational therapy, nursing, and business.

• As a result, these fields of study will face new borrowing limits starting on July 1, 2026.

• If your path of study was impacted by this change, you're not alone. We'll outline all of the funding options still available to you so that you can continue your degree

  
  

The Department of Education has changed which programs it considers professional degrees. Its new definition of “professional degrees” doesn’t always align with how people use the phrase in everyday life but does determine new borrowing limits on federal student loans.

If you’re a graduate student or plan to become one in the near future, this regulatory update could limit your access to unsubsidized federal student loans. Fortunately, you could still take advantage of some federal aid as well as other funding options, such as scholarships, grants, work-study programs, fellowships, and private student loans.

Let’s break down what counts as a professional degree for student loans and how the new classification may affect your funding opportunities down the road.

Which graduate programs qualify as professional degrees under the new rules?

On April 30, 2026, the Department of Education created its list of professional degrees programs. Now, 11 degrees are considered “professional,” including:

• Chiropractic (DC or D.C.M.)

• Clinical Psychology (including a Psy.D. or Ph.D.)

• Dentistry (DDS or D.M.D.)

• Law (JD or LLB)

• Medicine (MD)

• Optometry (OD)

• Osteopathic Medicine (DO)

• Pharmacy (Pharm.D.)

• Podiatry (D.P.M., DP, or Pod.D.)

• Theology (M.Div. or M.H.L.)

• Veterinary Medicine (D.V.M.)

July 2026 update: A federal court order has temporarily expanded this list of programs. It now includes audiology, speech-language pathology, physician associate, athletic training, physical therapy, occupational therapy, and nursing (MSN, DNP, DNAP). Because the court order is temporary, the list may change again as the situation evolves.

The Department of Education uses Classification of Instructional Programs (CIP) codes to help determine what programs count as professional degrees. If your graduate program has the same CIP code as one of the listed professional degrees, it might also be treated as a professional degree, even if it has a slightly different name.

This means you qualify for higher borrowing limits of up to $200,000 ($50,000 per year) while everyone else in grad school caps out at $100,000 ($20,500 per year).

TIP: You can find your graduate program’s CIP code on your school’s website and compare it with the Department of Education’s CIP classification system. If it falls under a CIP code grouping associated with one of the listed professional degree fields, it may be treated as a professional degree for student loan purposes. Check with your school’s financial aid office or wait for your financial aid offer to confirm.

Which graduate programs are excluded from the new professional degree definition?

Unfortunately, some popular graduate degree programs don’t count as professional degrees under the Department of Education’s new rules, such as:

• Architecture

• Engineering

• Business (including MBA programs)

• Physical therapy—temporarily reclassified as professional (as of June 24, 2026)

• Occupational therapy—temporarily reclassified as professional (as of June 24, 2026)

• Nursing—temporarily reclassified as professional (as of June 24, 2026)

If your grad program isn’t considered a professional degree, remember that it doesn’t reflect the quality or value of your program. It’s just an internal definition used by the Department of Education. It simply means your federal borrowing limits may be lower but you can still find other ways to pay for school.

What happens if my graduate program doesn’t count as a professional degree?

If your grad program is no longer classified as a professional degree, you’ll only be able to borrow up to $100,000 in federal student loans while professional students will be able to borrow up to $200,000. This change will begin on July 1, 2026.

Also, regardless of if you’re considered a grad or professional student, you’ll lose access to Grad Plus loans, which let students borrow up to the full cost of attendance. The only exception is if you’re grandfathered in.

If your annual tuition exceeds federal borrowing limits, you’ll need to find alternative funding to continue your degree. Fortunately, these alternative funding options can help you fill in the gap:

• Scholarships: Since you don’t have to pay them back, scholarships can be one of the most valuable ways to cover your graduate degree. You can find them online or through your college or local organizations. There are plenty of opportunities available based on need, merit, and demographics.

• Grants: Grants are usually need-based and offered by the federal government, the state, your college, or non-profit organization. Like scholarships, you don’t have to repay them, in most cases.

• Work-study: If you qualify for work-study, you may earn money while working part-time on or off-campus, depending on your school. This is a need-based federal program that can offset the cost of grad school and allow you to gain real-world experience.

• Fellowships: Fellowships are competitive merit-based financial awards that don't need to be repaid. They’re usually given to grad students who want to pursue research or another form of professional experience in their field and last for months or even years. Depending on the fellowship, you may receive a stipend, housing, or student loan repayment.

• Private student loans: Private student loans are available through lenders like Earnest. You can borrow up to 100% of the cost of attendance.

Learn more about Earnest Private Student Loans

If you’ve been affected by the new professional degree classification and need additional ways to pay for your graduate program, and you’ve exhausted all other sources of funding like scholarships, grants, and work-study programs, consider a private graduate student loan from Earnest.

We offer low rates, no origination fees¹, a 9-month grace period², and flexible repayment options³. Check your eligibility today to find out what you might qualify for. It’s fast, free, and won’t hurt your credit score.

Frequently Asked Questions (FAQ)

What is considered a professional degree?

As of April 2026, the Department of Education has decided 11 grad programs count as professional degrees. These include chiropractic, clinical psychology, dentistry, law, medicine, optometry, osteopathic medicine, pharmacy, podiatry, theology, and veterinary medicine.

How do I check if my graduate program qualifies as a professional degree?

First, look up your program’s CIP code on your school’s website or request it from your academic advisor. Then, compare it to the Department of Education’s official list of professional degree CIP code.

Will I be eligible for federal financial aid if my graduate program isn’t classified as professional?

Yes, you may be able to take out federal Direct Unsubsidized student loans but your borrowing limits will likely be limited to $20,500. You can fill in the gaps through scholarships, work-study, fellowships, and private student loans.

Can I take out the Grad PLUS loan after July 1, 2026?

Borrowers who already have Grad PLUS loans before July 1, 2026 can continue borrowing for up to three more years or until their program ends. Otherwise, Grad PLUS loans will not be available for new graduate or professional students after this date. You may look into Direct Unsubsidized Loans, scholarships, and private student loans instead.

This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice. It is accurate as of its publishing date.

Earnest Private Student Loans are subject to credit approval.

Before applying for private student loans, it’s best to maximize your other sources of financial aid first. It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grants, and work-study opportunities. 2) Next, fill out a FAFSA^® form to apply for federal student loans options. 3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2. For more information, visit the Department of Education website at studentaid.gov.

¹ Earnest does not charge fees for origination, late payments, returned check, or prepayments. Florida Stamp Tax: For Florida residents, Florida documentary stamp tax is required by law, calculated as $0.35 for each $100 (or portion thereof) of the principal loan amount, the amount of which is provided in the Final Disclosure. Lender will add the stamp tax to the principal loan amount. The full amount will be paid directly to the Florida Department of Revenue. Certificate of Registration No. 78-8016373916-1.

² Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school.

³ Repayment terms and repayment options available vary based on loan type.