The U.S. Department of Education has reclassified graduate theology programs as nonprofessional, a change that will affect student loan eligibility for those enrolled in such fields. The adjustment means theology graduate students will no longer qualify for the higher federal loan limits reserved for professional degree programs.

This shift follows a June 24 court order that temporarily blocked a Trump administration rule aimed at reclassifying certain graduate degrees, including nursing, as nonprofessional. Following the ruling, the department reinstated the professional status of nursing and other health care degrees while maintaining its intention to defend its original classification criteria. However, in updating the list of professional and nonprofessional programs on Monday, the department removed theology from the professional category.

Under the new guidelines, only 11 graduate degree programs retain professional status, entitling students to federal student loan limits of up to $50,000 annually and $200,000 over a lifetime. Other graduate students will face lower borrowing caps of $20,500 per year and $100,000 in total. The Department of Education emphasized that these designations are intended to distinguish programs eligible for increased loan limits and do not reflect judgments on the programs’ value or importance.

Officials have stated that the loan cap adjustments aim to encourage graduate programs to lower tuition costs and limit the risk of students accumulating unsustainable debt. While the broader changes to student loan eligibility are set to take effect July 1 amid ongoing legal disputes, experts advise borrowers to continue with their plans until further guidance is issued.

Although theology and ministry studies have been reclassified as nonprofessional, the master of divinity (M.Div.) degree remains classified as professional. John Cavadini, director of the McGrath Institute for Church Life at the University of Notre Dame, explained that the M.Div. is recognized as a professional degree because it combines theoretical study with practical training, such as liturgical celebration, parish administration, and pastoral care. In contrast, doctoral programs and other theology degrees, including the PhD in Theology, are generally viewed as academic rather than professional degrees, as they do not lead directly to specific occupations.

Cavadini also noted that the reclassification may have limited impact on most theology students, given that many pursuing doctoral study in theology do not typically take out large loans due to the field’s lower earning potential. He observed that the current loan limits for master's degrees are likely adequate for most students.

MinistryWatch, an evangelical watchdog group, reports that approximately 70,000 students are currently enrolled in graduate or doctoral theology programs nationwide, with more than a third pursuing M.Div. degrees. As the Department of Education continues to refine its classification approach amid legal challenges, students and institutions in theology programs remain uncertain about the full implications of the new loan eligibility rules.