New loan limits for ‘professional degrees’ could worsen teaching shortage, university says

CEDAR FALLS, Iowa (KCRG/Gray News) - A university in Iowa says it’s preparing to offer students more resources on their loan options.

The University of Northern Iowa made the announcement following the Trump administration’s changes to the list of “professional degrees” that excludes certain graduate programs, like teaching, from higher federal loan limits.

Starting July 1, 2026, graduate students studying to work as teachers, nurse practitioners, social workers, physician assistants and occupational therapists, among other careers, will not be considered part of the “professional” level.

Jalynn Peterson is studying elementary education at UNI and says she’s dreamed of becoming a teacher since she was a kid.

Peterson said she is currently not taking out any student loans, but might have to for her master’s degree in administration.

“When you’re freshly 18 or freshly starting a job, you don’t have that money racked up to like just pay for grad school right off hand,” she said. “So, loans are definitely important to like getting your education and getting a good education.”

UNI Director of Financial Aid Tim Bakula said students like Peterson have been asking about upcoming loan caps for some graduate programs.

“There are many students who are concerned, ‘Am I gonna have enough money after my graduate level $20,500 that’s available to me?’” he said. ”And unfortunately, some of those students are gonna need to look at private loans if they’re already maxing out.”

The National Center for Education Statistics shows that more than half of U.S. public school teachers have a master’s degree or higher, so these changes could affect many students who go on to become teachers.

“What might that mean for students thinking, ‘I just can’t do this if I don’t have a federal loan available?’” Bakula said. ”I think that’s a very legitimate concern."

While Iowa’s teacher shortage this school year is less than the national average, there are still open positions with no one to fill them, and this change in loan policy could exacerbate the problem.

“Work with your aid office to determine what might be your best path forward,” Bakula said.