Dept. of Education releases final rule on professional degree programs

Federal Student Loans Face Major Overhaul: New Rule Sets Caps on Borrowing In a significant shift in the way students access higher education, the US Department of Education has finalized a rule that will introduce annual and lifetime limits on federal student loans. Set to take effect on July 1, 2026, the new regulation aims to provide borrowers with a clearer understanding of their debt obligations and prevent over-borrowing. The American Institute of Certified Public Accountants (AICPA) had been pushing for language in the final rule that would help account for the potential tax implications of federal student loan forgiveness programs, highlighting the complex interplay between student debt and tax policies. As the new rule is implemented, experts will be closely monitoring its impact on students, families, and the broader economy.

The final rule, effective July 1, 2026, sets annual and lifetime limits on federal student loans. The AICPA had urged the Department of Education to include language in the final rule that its ...