Recent developments from the Department of Education regarding graduate degree classifications have sparked significant concern among accounting professionals and related organizations. The department’s RISE committee has proposed draft regulations that exclude master’s and doctoral degrees in accounting from the designation of “professional” degrees eligible for enhanced federal student loans. This ruling categorizes only 11 specific degree fields, such as law and medicine, as professional, resulting in a potential reduction in financial aid for students in other critical areas like accounting, nursing, and engineering.
If the draft regulations are finalized, students in designated professional fields would be allowed to borrow up to $50,000 per year, totaling a maximum of $200,000, while students in non-designated fields, including accounting, would face borrowing limits of $20,500 per year and $100,000 in total. This change could significantly hinder the ability of graduate students in accounting to finance their education, given that tuition for a master’s degree in accounting can range from $25,000 to $70,000, often exceeding the proposed federal loan cap.
Professional organizations, including the AICPA, NASBA, and the American Accounting Association, have expressed strong opposition to the Department’s decision. They argue that the classification could damage the public perception of accounting as a respected profession and deter prospective students from pursuing advanced degrees in the field. Accounting leaders emphasize the profession’s established history, noting that certified public accountancy has been a licensed profession in the United States since 1896.
Concerns extend beyond immediate financial implications; leaders warn that a decline in graduate degree enrollment could lead to smaller accounting programs and a potential shortage of accounting faculty in the future. With master’s degree completions in accounting already down by 38% over recent years, the prospect of further decreases alarms educators who fear that fewer qualified individuals will enter the profession.
The Department of Education has stated that the ruling will take effect in July 2026, after a comment period during which they may consider adjustments based on public feedback. However, accounting advocates worry that if the exclusion persists, it may discourage students from pursuing graduate education altogether, jeopardizing the future of both the profession and the integrity of the capital markets.
As discussions continue, stakeholders in the accounting community are calling on policymakers to reconsider their stance and reinstate accounting degrees as professional qualifications. With the landscape of accounting education hanging in the balance, the implications of this decision could resonate for years to come.
