A seismic policy shift by the U.S. Department of Education, reclassifying accounting degrees as ‘non-professional’ and drastically cutting federal loan access, has ignited a furious backlash from the nation’s leading accounting organizations, who warn the move imperils the future pipeline of Certified Public Accountants and threatens financial stability.
The National Association of State Boards of Accountancy (NASBA) and the American Institute of CPAs (AICPA), alongside state CPA societies, are vehemently opposing the changes. Beginning July 2026, under the new Repayment Assistance Plan (RAP) within President Donald Trump’s “One Big Beautiful Bill Act,” a landmark bill designed to reduce federal spending and reform various government sectors, accounting students will see their annual federal loan limits plummet from $50,000 to $20,500—a cap typically reserved for non-professional degrees.
Education Department Defends Policy Shift
The Department of Education (DOE) has justified the reclassification as an effort to simplify the complex student loan system and control burgeoning student debt. The Act’s broader fiscal policy capped undergraduate loans, eliminated the Grad PLUS program, and stipulated that only students in narrowly defined “professional” programs like medicine, dentistry, and law could borrow up to $50,000 annually.
Responding to an inquiry from Thomson Reuters on December 3, 2025, the DOE clarified their stance. They stated that while accounting degrees are now reclassified, students pursuing graduate or doctoral degrees in the field would still be capped at $100,000 in federal loans. The DOE pointed out that the average graduate tuition for an accounting degree is $20,500, suggesting that most programs would not be significantly impacted by these new caps.
In further explanation, the DOE directed attention to a “myth vs. fact” sheet. This document emphasizes that their definition of a “professional degree” is an internal classification for loan limit purposes only, not a value judgment on the importance or inherent professionalism of a field. The DOE contends that the new loan caps are intended to curb inflated tuition prices, arguing that the previous system, which allowed borrowing for the full cost of attendance, contributed to rising educational costs. Furthermore, the DOE stressed that these changes were not enacted unilaterally, citing extensive public feedback and the involvement of a negotiated rulemaking committee. They also confirmed that additional opportunities for public input are scheduled for early next year.
Industry Outcry: Professional Status Challenged
This revised classification effectively excludes a broad range of previously recognized professional fields from the higher loan limits, including accounting, nursing, education, social work, public health, physician assistant, occupational therapy, physical therapy, audiology, speech-language pathology, and counseling. Consequently, only medicine, dentistry, and law retain their classification as professional degrees eligible for the higher federal loan caps.
“Classifying accountants as anything other than professionals fundamentally misrepresents the critical work CPAs perform, work that is responsible for the integrity of the global financial systems on which businesses and individuals rely,” said Daniel Dustin, NASBA President and CEO in a statement. “There’s a reason certified public accountancy has been a licensed profession in the United States since 1896.”
The AICPA echoed this sentiment. Mark Koziel, president and CEO of the AICPA, emphasized, “Recognizing accounting programs as professional degree programs is common sense. It reflects the impact accountants make on the lives of individuals, the health of communities and the integrity of financial systems, as well as the rigorous path taken to become a licensed Certified Public Accountant.”
Both organizations argue that while debt control is a valid concern, the reclassification of accounting as non-professional is misdirected and will have severe unintended consequences. The reduced loan access could force aspiring accountants to rely on private loans, which often carry higher interest rates and less flexible repayment terms, thus increasing the very debt burden the Department claims to be addressing. This financial hurdle comes at a time when the federal government’s own projections, cited by the AICPA, show a projected 5% growth in demand for accountants through 2034, outpacing the general job market.
Advocacy Efforts Mount
NASBA, which consults with the 55 U.S. accounting jurisdictions licensing over 653,000 CPAs, affirmed its commitment to engaging with policymakers to ensure accounting is restored to its professional degree category. The AICPA and state CPA societies have also pledged to continue their strong advocacy, working to highlight the inconsistencies between the Department’s new definition and the profession’s long-standing regulatory framework and public interest mandate. They plan to petition Congress and the Department of Education for an immediate review and amendment of the “One Big Beautiful Bill Act” to explicitly include accounting as a professional degree.
“Federal policy must accurately reflect the realities of professional CPA licensure, as economic stability and protection of the public depend on a strong and well-regulated accounting profession,” NASBA’s Dustin added. The accounting bodies are calling for solutions that will strengthen the profession and protect the public interest, rather than undermine it.
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