Students preparing for degree programs in architecture, education, and several other academic fields will face reduced federal student loan limits beginning July 1, 2026, according to new federal guidelines set by the U.S. Department of Education.

These changes are part of President Donald Trump’s One Big Beautiful Bill, which reclassifies numerous academic tracks and removes their designation as “professional degrees.” Historically, programs considered “professional” — such as law, medicine, and architecture — have been eligible for higher federal borrowing limits to help offset the cost of specialized education.

With these classifications changing, affected programs will now fall under lower federal loan caps, limiting the total amount students may borrow each year and over the course of their degree.

Programs no longer meeting the definition of a recognized “professional degree” will be subject to more restrictive borrowing limits similar to those used for general undergraduate study.

Why the Changes Are Happening

Under the bill’s new framework, the Department of Education has revised how it categorizes certain academic disciplines. Programs no longer meeting the definition of a recognized “professional degree” will be subject to more restrictive borrowing limits similar to those used for general undergraduate study. This change affects fields such as: Architecture Education Other selected programs designated by the Department of Education The goal, according to federal officials, is to streamline funding categories and reduce overall federal loan exposure. However, many higher-education experts and student advocacy groups caution that the change may increase financial barriers for future students entering these professions.

Impact on Students and Families

The reduction in available federal student loans may have several implications:

1. Increased Out-of-Pocket Costs

Students may face larger financial gaps between tuition costs and allowable federal aid.

2. Greater Reliance on Alternative Funding

Students may need to pursue:
• Scholarships
• State grants
• Institutional aid
• Private loans, often with higher interest rates

3. Potential Enrollment Impact

Architectural and education programs — already facing worker shortages nationwide — may see decreased enrollment as affordability becomes a larger concern.

4. Higher Burden on Low-Income Students

Students from low-income and rural backgrounds may be disproportionately affected, widening opportunity gaps.

What Students Should Do Now

Community Action Agencies recommend that prospective students:

1. Begin Financial Planning Early

Review expected program costs and compare them to new federal loan limits.

2. Explore Scholarships and Grants

Many professional associations and foundations support future architects and educators.

3. Meet With a Financial Aid Advisor

Schools can provide guidance on alternative financing or work-study options.

4. Stay Informed

As federal implementation details continue to unfold, staying connected with financial aid offices and Department of Education updates will be essential.

Supporting Students Across the Southeast

CAA Alabama and SEACAA will continue monitoring the changes and providing information to help families navigate the shifting landscape of higher education financing. Ensuring students have access to accurate guidance and equitable opportunities remains a core priority.