An Iowa university says new loan limits for “professional degrees” could worsen teaching shortage

CEDAR FALLS, Iowa (KCRG) – The University of Northern Iowa said it’s preparing to offer students more resources on their loan options.

That’s after the Trump administration made changes to the list of “professional degrees” to exclude 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.

Freshman Jalynn Peterson is studying elementary education. She’s dreamed of becoming a teacher since she was a kid.

She’s not taking out any student loans now, but said she 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,” Peterson said. “So, loans are definitely important to like getting your education and getting a good education.”

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 that are concerned, ‘Am I gonna have enough money after my graduate level $20,500 that’s available to me?’ Bakula 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 more than half of U.S. public school teachers have a masters degree or higher — meaning this change would 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 in Iowa’s schools.

This change in loan policy could exacerbate the problem.

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

For Peterson, decisions about graduate school are still a way’s off. She’s just eager to get her bachelor’s and start leading her classroom.

Copyright 2025 KCRG. All rights reserved.