Student Loan Debt Relief for Social Workers
NASW is committed to advocating for policy changes that address the critical issue of student loan debt. Recognizing the profound impact of student loans on social workers and the broader public service workforce, NASW consistently monitors the political landscape for opportunities to make progress and create meaningful impact. NASW is disappointed that on October 31, 2025, the U.S. Department of Education published a final rule to restrict which employers qualify for Public Service Loan Forgiveness eligibility.
At the same time, when the cost of college and professional graduate degree programs are at an all-time high and the need for mental health professionals and educators is critical, Congress cut $300 billion to higher education and financial aid programs as well as student loan repayment programs. The One Big Beautiful Bill Act (OBBBA) makes it harder for millions of Americans to afford to start or continue going to college.
In the OBBBA, Congress put limits on loan amounts for post-bachelor’s degrees depending on whether the degree is considered a professional or non-professional program. Those considered to be professional programs have higher loan limits than those considered to be graduate programs.
For graduate non-professional degrees, the new caps are:
- $20,500 annually; and
- $100,000 aggregate.
For graduate professional degrees, the new caps are:
- $50,000 annually; and
- $200,000 aggregate.
According to the proposed rule, social work degrees are not considered to be professional degrees. NASW is working in coalition to advocate for social work and other health programs to be considered professional programs.
Borrowers who are currently paying back their loans will also see changes to their repayment options as a result of the OBBBA. Many people will be forced out of the Saving on a Valuable Education (SAVE) plan, where their loans have been in forbearance, and severely reduce the number of income-driven repayment options available. This will spike monthly student loan payments for millions of families who live paycheck to paycheck.
The OBBA also eliminated the Graduate PLUS loans and as of July 1, 2026, graduate students will no longer be able to apply for this federal assistance. The maximum PLUS loan amount is the cost of attendance minus any other financial assistance, and it helps 1.8 million individuals afford graduate programs. In the midst of a growing mental health crisis, Congress chose to eliminate one pathway to ensuring educated professionals will be available to support their communities’ needs. Many social work students rely on Graduate PLUS loans to finance their graduate degrees.
Another way this bill impacts future social workers is by endangering their ability to apply federal student loans to programs based on low earning outcomes. This provision, entitled the “do no harm” standard, seeks to prohibit the use of federal loans for paying for undergraduate degree programs where the majority of former students earn less than the median high school graduate in the same state, as well as for graduate programs where the majority of former students earn less than the median bachelor’s degree recipient in the same field in the same state. Judging programs by their earning potential will impact helping professions such as social work. While NASW has continued to advocate for increasing pay rates at the state and federal level, Congress is specifically targeting professions that are not necessarily lucrative financially instead of offering solutions to increase pay to these roles that are critical to healthy communities.
As part of its ongoing efforts, NASW actively participates in the Public Service Loan Forgiveness Coalition and maintains a close partnership with Protect Borrowers. Through these collaborations, NASW works towards expanding student loan debt relief options, strengthening the PSLF program, cancellation measures, and employer-sponsored relief.
One of NASW's key objectives is to broaden PSLF eligibility to encompass social workers employed by nonprofits and for-profit organizations that currently do not qualify. This pursuit is not without its challenges, but NASW remains resolute in its commitment to advancing the interests of social workers and expanding their access to critical student loan benefits.
NASW responds to the U.S. Department of Education requests for comments, and also actively engages with external organizations to provide support on this issue. As an example, NASW submitted comments to the U.S. Department of Education on their proposed (now final) rule that would restrict employer participation in the PSLF program based on the nature of work an individual’s employer.
Through its continuous monitoring, strategic partnerships, and active engagement in policy discussions, NASW demonstrates its unwavering commitment to addressing the challenges posed by student debt and championing the needs of social workers nationwide.
Read "Student Loan Payments to Resume: What You Need to Know" to learn more.
You can find more information on the Federal Student Aid website .