On May 1, 2026, the U.S. Department of Education published its final ruleopens in new window implementing changes to the federal student loan system stemming from the passage of the One Big Beautiful Bill Actopens in new window. The rule recognizes certain licensure-track psychology programs as professional degrees, making doctoral psychology students enrolled in those programs eligible for higher federal loan limits beginning July 1, 2026.
The new law fundamentally reshapes graduate student borrowing by instituting loan limits and phasing out the Graduate PLUS program. While these changes represent a significant departure from prior policy, the department’s decision to classify psychology programs leading to licensure as a professional degree helps ensure that students in those programs are not subject to lower borrowing limits that could hinder their ability to finance training.
This final rule represents the culmination of sustained advocacy by APA Services, in partnership with psychologists across the country, throughout the rulemaking process to ensure as many psychology programs as possible can access the greater of the newly established federal student loan limits. APA Services spent many months working with Congress to ensure the best possible legislative outcome for psychology, given the circumstances.
When rulemaking began, APA Services submitted comments for the public hearing to emphasize the unique cost, duration, and workforce role of psychology training. Throughout the rulemaking process, APA Services worked closely with key negotiators on the panel and met directly with Department of Education staff to share program data and provide critical clarifications about psychology doctoral education.
APA Services also coordinated bipartisan outreach on Capitol Hill, bringing together key House members to submit a joint letteropens in new window to the Department of Education and engaging SPTAs in targeted outreach to senators. Following publication of the proposed rule, which included psychology within the definition of a professional degree, APA Services submitted comments in supportopens in new window.
As the regulations go into effect on July 1, APA Services will continue monitoring the implementation process and advocating for policies that support psychology education and the mental and behavioral health workforce. For additional perspective on how the new rule impacts psychology trainees and early career psychologists, see APA’s recent Monitor on Psychology article, “What psychologists need to know about new federal student loan rules.”
For more information, contact Kenneth Polishchuk.