Graduate Degree vs. Professional Degree For Student Loans

With the Big Beautiful Bill ending Grad PLUS loans in 2026, many students looking at graduate school are wondering how the new student loan limits will impact them.

The Grad PLUS loan program allowed graduate students - both graduate and professional - to borrow up to the full cost of attendance. However, starting July 1, 2026, the new limits under the Direct Loan Program for Graduate Students would be:

• Graduate Students (Master’s): $20,500 annually, $100,000 total limit.
• Professional Students (e.g., Law, Medicine): $50,000 annually, $200,000 total limit.

So, the question arises: what's considered a graduate student, and what's considered a professional student. We break down the Federal Student Aid (FSA) handbook.

What Is Considered Graduate School?

These include academic programs beyond a bachelor's degree, usually in arts and sciences. Here are some of the most common graduate school degrees and programs:

Master’s Degrees:

• Master of Arts (MA)
• Master of Science (MS)
• Master of Public Health (MPH)
• Master of Education (MEd)
• Master of Fine Arts (MFA)
• Master of Business Administration (MBA)

Doctoral Degrees:

• Ph.D. (Doctor of Philosophy)
• Ed.D. (Doctor of Education)

Unfortunately, many degrees that most would consider "professional" are also technically considered graduate programs by the new definitions. Including:

• Doctor of Physical Therapy (DPT)
• Physician Assistant (PA)
• Occupational Therapy (MSOT or OTD)
• Speech-Language-Pathology (MS SLP)
• Social Work (MSW)

What Is Considered Professional School?

These are advanced degrees required to practice in certain fields (usually including professional licensing). These degrees also have a level of skill required beyond what's normally required for a bachelor's degree.

According to the latest from the RISE negotiated rule-making committee, professional school leads to one of the following degrees:

• Law (LLB or JD)
• Medicine (MD or DO)
• Pharmacy (PharmD)
• Dentistry (DDS or DMD)
• Veterinary Medicine (DVM)
• Optometry (OD)
• Podiatric Medicine (DPM, DP, or Pod.D.)
• Clinical Psychology (Psy.D.) 
• Chiropractic (DC or DCM)
• Theology or Divinity (MDiv or MHL) *depends on context and accreditation

The full rule is:

Find Your CIP Code

Based on the final rules, the Classification of Instructional Program (CIP) Code is what determines your eligibility. You can generally find your program's CIP code on your schools website or by asking the school's financial aid office. For example, here's the CIP Code list for Northwestern University.

In order for your program to qualify, it must start with one of the following 4-Digit Codes:

• Veterinary Medicine (01.80)
• Law (22.01)
• Theological and Ministerial Studies (39.06)
• Clinical, Counseling, and Applied Psychology (42.28)
• Chiropractic (51.01)
• Dentistry (51.04)
• Medicine (51.12)
• Optometry (51.17)
• Pharmacy and Pharmaceutical Science (51.20) 

Within the general categories, there are 44 unique programs that would qualify as professional school. For example, you put the first 4 numbers (above) with a unique program identifier. For example, Law is 220101. Or Medicine can be 511200 or 511201.

People Also Ask

What about dual degree/combo programs for bachelor's degrees and master's degrees?

A student enrolled in a dual degree program can receive undergraduate financial aid until the complete the undergraduate portion of the program, in which case they can then receive graduate aid. That's typically considered at least three years of study.

What's the difference between graduate and professional school?

Graduate school generally emphasizes advanced academic study and research, while professional school prepares students for specific careers - such as medicine and law.

What's considered a graduate or professional student?

This is a student who is pursuing education beyond an undergraduate (bachelor's) degree. There are two types: graduate and professional. 

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