11/21/2025
🚨 Urgent Federal News: New Law Threatens Financial Aid for Future MFTs, counselors, and social workers.
The student loan system for MFTs, social workers and counselors is in immediate danger due to the One Big Beautiful Bill Act (OBBBA), which became law in July 2025. This bill eliminates the Grad PLUS Loan (which currently covers full program costs) and establishes strict new caps on what graduate students can borrow starting July 2026. The OBBBA created a small exception with higher loan limits for "professional student" degrees (like medicine). However, the Department of Education, in writing the rules for the OBBBA, created a very narrow definition that excludes all MFTs, social workers, and counseling master's and doctoral programs.
🛑 The Financial Impact:
By being excluded from the higher loan category, MFT, social work, and counseling students will be restricted to the lowest federal loan caps (around $20,500 annually). Worse, these limits are not just annual but are prorated per semester or term, making financial planning highly restrictive and forcing students to rely on much more expensive private loans to complete their degree. This change dramatically increases the cost of entering our profession, ultimately threatening the supply of mental health professionals needed to serve our communities. However, this is not a done deal.
📣 Your Action is Needed:
While the Department of Education’s negotiating committee proposed this damaging definition, it is not yet final. The Department of Education will soon publish a Notice of Proposed Rulemaking (NPRM), which opens a critical 30- to 60-day Public Comment Period. This is our only chance to overturn this definition. All members, students, and program faculty must prepare to submit comments detailing the essential role of MFTs, social workers, and counselors, how this rule creates an unbearable financial barrier, and why it works against federal efforts to address the mental health crisis.
Please monitor UAMFT communications as we will be tracking the official launch of the comment period and providing template letters. Your voice is essential for the future of our field.