NASW Criticizes Department of Education Rule on Student Loans

By Paul R. Pace

NASW condemned a final rule issued by the U.S. Department of Education on May 1 that changes the federal student loan program. The rule cuts off access to higher federal student loan limits for social work students.

NASW staff and members of the congressional briefing planning group pose for a photo for the briefing “The Crisis in Mental Health: Professional Degree Loan Limits."

NASW said the decision will narrow the pathway for students to become social workers—one of the nation’s fastest growing and most essential professions—at a time when the country can least afford it.

The rule in question, the Reimagining and Improving Student Education (RISE) final rule, excludes social work from the definition of a “professional degree.” That exclusion will cause hardships for social work students despite overwhelming evidence that the U.S. is facing a critical shortage of mental health services providers, particularly in rural parts of the nation. For example:

• The Bureau of Labor Statistics projects the U.S. will need more than 840,000 social workers by 2034 to keep pace with demand.
• By 2030, one in five Americans will be 65 or older, requiring a massive surge in geriatric social work.
• Social workers are the primary providers of mental health services to veterans and those struggling with opioid addiction.

The RISE rule goes into effect July 1, 2026. It creates a sharp distinction between “professional” and “graduate” programs, which significantly impacts how much money students can borrow. Social work students will have an annual limit of borrowing $20,500 and an aggregate limit of $100,000. Meanwhile, “professional degree” programs, which are limited to 11 professions, will have annual limits of $50,000 and aggregate limits of $200,000.

This means students in MSW or DSW programs are now restricted to the lower $20,500 annual cap. Students currently enrolled before July 1, 2026, may continue to borrow under old limits for the lesserof three years or their remaining time to degree.

During the comment period for the final rule, NASW urged the Department of Education not to make these changes while they were in the proposal stage. In addition, 30,000 social workers signed a petition asking the department to reverse course on the proposed changes. More than 1,100 individuals submitted public comments through the NASW Action Center as well. Unfortunately, the Education Department made no substantive changes despite these pleas.

“The Trump administration didn’t just ignore 30,000 social workers who signed a petition,” said NASW CEO Anthony Estreet, PhD, MBA, LCSW-C. “They buried it, then turned around and cut off the student loan access that makes it possible to educate and prepare social workers who are the largest providers of mental health services in the first place.”

“Social work is a profession,” Estreet continued. “It requires a graduate degree, supervised clinical hours, and state licensure. When you make it harder for people to afford that education, you don’t just thin out a workforce; you leave real people without care...You can’t treat this as acceptable. We won’t.”

In a statement after the final rule was announced, NASW noted social workers show up every day in schools, hospitals, rural clinics, and community centers across the country. They carry caseloads that would exhaust most people, often in communities that have been written off by other systems. Making it harder for them to afford the education that qualifies them to do this work is a direct harm to the communities they serve, NASW said.

“NASW won’t stop here,” Estreet said. “We will continue to fight for the recognition social workers deserve and ensure that the cost of an education doesn’t prevent a dedicated professional from saving lives.”

“For a lot of people this isn’t enough (of a loan) to get their advanced degrees,” said Dina Kastner, MSS, MLSP, public policy and advocacy manager at NASW, during an NASW video briefing on the issue broadcast in February.

The Department of Education took a narrow view of what defines a professional program, Kastner explained. “Social work was not on that list, even though it meets the requirements they talked about in terms of having professional skills beyond what is normally required for a bachelor’s degree and professional licensure.”

In addition to its comments and action alerts, NASW co-sponsored a congressional briefing earlier this year titled “The Crisis in Mental Health: Professional Degree Loan Limits,” in cooperation with Rep. Andrea Salinas, D-Ore.

Estreet, Kastner and other NASW staff attended the briefing. Estreet said at the time that the proposed rule change will contradict Congress’ broad recognition of the mental health crisis in this country and the need for more providers to ensure Americans can access vital services. Student loans are essential to ensure a strong social work workforce and keep it financially accessible to individuals in the future, he said.

In addition to its submitted comments, NASW signed on to coalition comments, amplifying its voice. Bills in Congress have been introduced to try to rectify the student loan limit issue.

One is the Loan Equity for Advanced Professionals Act, HR 6574. It would amend the higher education act to ensure that graduate and professional students have the same annual aggregate limits for federal direct unsubsidized loans. That covers any profession, graduate program, whether it has been deemed professional by the Education Department at this point, Kastner said.

NASW has endorsed the Professional Degree Act, HR 6718. It adds social work to the list of professional degrees. Another bill NASW has endorsed is the Professional Degree Access Restoration Act, S 4039/HR 6677. It would amend the Higher Education Act to restore thefederal loan structure that existed prior to the proposed changes by the Department of Education.

All three bills would expand the definition of professional degrees to include social work, Kastner said.