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. Currently, students in the 11 designated "professional" fields can borrow up to $50, 000 annually and a maximum of $200, 000. However, students in other programs, including accounting, would see their federal loans capped at $20, 500 per year and $100, 000 in total. This change has sparked backlash from various professional organizations, including those in accounting. 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. 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. 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. If the loan caps remain as proposed, students might struggle to fund their graduate education. Tuition for a master's in accounting can range from $25, 000 to $70, 000, and some programs exceed the proposed federal loan cap. This could force students to seek private loans, which often come with higher interest rates and fewer repayment options. The decision could also have broader implications for accounting education. A decrease in graduate students could lead to smaller programs and a potential shortage of accounting faculty in the future. This is particularly concerning given the already declining number of master's degree completions in accounting. 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.