Graduate Degrees in Accounting Face Funding Hurdles

The Education Department has stirred up controversy by redefining which graduate degrees qualify as "professional" for federal student loans. Accounting degrees were notably left off the list, alongside other fields like nursing, engineering, and architecture. This decision could significantly impact how much federal aid students can access.

Current Loan Limits

Designated "Professional" Fields:
Annual Loan Limit: $50,000
Maximum Loan Limit: $200,000
Other Programs (including Accounting):
Annual Loan Limit: $20,500
Maximum Loan Limit: $100,000

Backlash from Professional Organizations

The American Institute of CPAs (AICPA), the National Association of State Boards of Accountancy (NASBA), and the American Accounting Association (AAA) have all voiced their opposition. They argue that accounting has long been recognized as a profession and that this decision could harm its reputation and discourage students from pursuing advanced degrees.

Concerns from Accounting Leaders

Leaders in the accounting field are concerned that the decision might mislead young people into thinking accounting is not a professional field. They emphasize that accounting requires trust, integrity, and a commitment to ethical practices and continuing education.

Potential Impact on Students and Education

Financial Burden: Students might struggle to fund their graduate education, with tuition ranging from $25,000 to $70,000.
Private Loans: Students may need to seek private loans, which often come with higher interest rates and fewer repayment options.
Broader Implications: A decrease in graduate students could lead to smaller programs and a potential shortage of accounting faculty in the future.

Timeline and Feedback

The ruling is set to take effect in July 2026, but the department is open to feedback and may make changes based on public comments.

Conclusion

Ultimately, the ruling could discourage students from pursuing the education needed to make informed professional judgments, which are crucial for the reliability of the capital market system in the U.S.