The Fight Against Federal Student Loan Caps for Degrees in Counseling

In July 2026, the U.S. Department of Education (ED) is poised to make major changes to federal loan limits for certain degrees, including Counseling. Provisions in the One Big Beautiful Bill Act (OBBBA) trigger a regulation that would no longer classify Counselor Education or Counseling degrees as professional degrees. In November, NBCC outlined this issue in a blog post and a 2-minute drill.

The loan caps present a challenge to the profession. Under new limits in the OBBBA, federal loans for graduate students will be capped at $20,500 for each academic year. Lack of appropriate federal loan support for students seeking graduate-level counseling degrees may negatively impact the mental health counselor workforce at a time when demand for services provided by mental health counselors is high.  

What Can You Do?

Notice of Proposed Rulemaking

Before issuing a final rule, ED will publish a Notice of Proposed Rulemaking in the Federal Register, initiating a public comment period that could last anywhere from 30 to 90 days. Please find FAQs for ED Public Comment Periods for Negotiated Rulemaking. NBCC will notify NCCs when the public comment period opens, likely in mid-January. 

To engage in the public comment process, Counselors should share their experiences and highlight their highly specialized training. We suggest the following points: 

• Mental Health Counselors must earn a master’s degree, complete postgraduate supervised clinical hours, and pass a national counselor examination to obtain licensure. 
• Mental Health Counselors provide specialized services to their clients according to their dedicated training. 
• Mental Health Counselors work in a variety of both inpatient and outpatient settings, including schools and correctional facilities. 
• According to HRSA’s State of the Behavioral Health Workforce in 2024, more than one-third of the U.S. population lives in a Mental Health Professional Shortage Area. 
• Reductions in the Mental Health Counselor workforce would have a particularly detrimental impact on rural areas that already experience gaps in access to providers. 
• Additionally, HRSA projects “substantial” shortages of Addiction Counselors, Marriage and Family Therapists, Mental Health Counselors, Psychologists, Physician Assistants/Associates, Psychiatrists, and School Counselors by 2037. 
• Mental Health Counselors make up the second largest group in the U.S. behavioral health workforce and are essential to meeting the mental health needs of Americans. 
• The changes proposed by ED put the future of the Mental Health Counseling profession at risk and are likely to exacerbate the already critical mental health provider shortage in the United States. 

Contact your Congressional Representatives

We urge you to contact your congressional representatives today by using our BVCC Action Alert system.  Share your personal experience receiving federal student aid and how this support allowed or is currently allowing you to complete your education and succeed in your profession. 

Follow our Congressional Briefing

On Jan. 15, NBCC and other organizational partners will hold a congressional briefing in Washington, D.C. with the support of Representative Andrea Salinas (D-OR). Various stakeholder organizations will emphasize the importance of maintaining access to affordable graduate education in counseling, nursing, and related mental health fields. The goal is to educate as many congressional staff as possible on the detrimental effects of these regulations and to ask for their support and assistance.

Since the passage of OBBBA, NBCC has been committed to advocating on behalf of NCCs. We will continue to represent you and your profession in this fight. Please reach out to govtaffairs@nbcc.org with any questions.