Grad v. Professional Programs a Key Issue for ED Panel

"The terms "graduate" and "professional" were once nothing more than a trivial self-prescribed classification. But under the Republicans' new law, they have become critical labels that could alter which college programs get more federal aid. For example, under the new plan, student borrowers in a graduate program will be limited to $20,500 per year or $100,000 total, whereas those enrolled in a professional program will be able to borrow more than double that."

"And while lawmakers on Capitol Hill gave the department a foundational definition of what qualifies as professional in the bill, it's up to Education Under Secretary Nicholas Kent and the negotiated rule-making advisory committee to write rules that detail how that definition will work in practice. (The committee is scheduled to meet for another weeklong session in November, and only after that can the department finalize its proposal and open the floor for public comment.)"

"Some university lobbyists and career associations want the department to include more programs in the professional bucket and make a comprehensive list of those that qualify. Others recommend using a broad definition and then letting institutions sort the programs. Consumer protection advocates, however, are urging the department to stick to the original, more narrow definition in an effort to prevent greater levels of student debt."

A weeklong negotiated rule-making meeting will begin to determine how to implement major higher-education changes from the new Republican law. Agenda items include specifics on loan repayment plans and pathways for struggling borrowers to regain good standing. A central issue is how to differentiate graduate and professional degree programs because that label will determine annual and lifetime borrowing caps. Under the new framework, graduate students face a $20,500 annual or $100,000 lifetime limit while professional-program students can borrow more than double. Lawmakers provided a baseline definition of 'professional'; the Education Under Secretary and advisory committee must draft enforceable regulations.

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