The implementation of H.R. 1 (also referred to as the “One Big Beautiful Bill Act”) imposed new caps on student loans for students pursuing graduate degrees. Previously, there was no limit to the amount that a graduate student could borrow up to the cost of attendance. Educators pursue graduate degrees to deepen their practice and expertise and strengthen their impact on students. These degrees help them advance in their careers and, in many cases, are required for higher compensation and continued professional growth.
This new cap required that a negotiated rulemaking committee, under the U.S. Department of Education, establish rules on implementing these caps. The Act (H. R. 1) introduced strict limits on graduate school loans and mandated higher caps for historically designated "professional degrees," such as law and medicine.
As educators, we know the work we do is professional. However, the disrespect we are feeling about these caps is politically motivated and it’s coming from this administration. They are devaluing our work with students and treating our profession as a convenient political target because they believe undermining educators plays well for them.
Please see below for helpful information to better understand this situation.
Frequently Asked Questions
Q: Does the U.S. Department of Education no longer consider teaching, nursing, special education, speech pathology, etc., as professional programs?
A: By arbitrarily assigning higher loan limits to some degrees and lesser value to educational degrees and others, Congress has created an uneven system that leaves many of our members behind — including teachers, nurses, school social workers, speech pathologists, and counselors — who rely on advanced degrees to serve our students. This has excluded many of our members from the higher borrowing limits for graduate programs. Therefore, while our members are professionals, they generally don’t fall under the specific "professional degree" classification used for this legislation.
Q: How does this change impact current degree holders or those currently working in these fields?
A: This change will place a limit on the amount of federal loans that can be borrowed by graduate students. Previously, there was no limit to the amount that a graduate student could borrow. Beginning July 2026, most graduate programs will have a $100,000 borrowing cap. Only some high-cost graduate programs (such as medicine and law, among others) will have a higher borrowing cap of $200,000. This is only related to limits on new federal graduate loans. Current degree holders or borrowers will experience no changes related to this regulation. Undergraduate student loans will not be impacted. They have always had a borrowing cap.
Q: Who is responsible for this change?
A: This law was created by an act of Congress, H.R.1, and supported by the Trump administration. The U.S. Department of Education is responsible for developing the regulatory language, but Congress is responsible for creating the loan limits for different programs.
Q: Who stands to benefit from this change?
A: Private lenders. With federal loans for graduate school now capped without anticipating the continuous rise in tuition costs, students and families will be forced to secure loans from private lenders to make up the difference. Private loans have higher interest rates and less transparency than federal loans. The administration will continue its effort to demoralize educators, divide families from school employees, and politicize our classrooms.
Q: Who will lose from this change?
A: NEA Members, especially those from marginalized communities, may find it more difficult to improve their professional practice, increase salaries, and stay in the classroom. Students will lose the opportunity to learn from educators who have expanded their skill sets, strengthened their practice, understand trauma-informed approaches, and know how to work effectively with families and communities.
Q: How can we take action?
A: Demand that your members of Congress respect educators and eliminate these arbitrary loan tiers. This is a problem that Congress caused, and that Congress can and should fix. However, the U.S. Department of Education has the final say on how education degrees are categorized and we will make our voices heard.
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