Introduction to the Issue
Kimberly Mann spent what felt like her whole summer reading applications for the social work master’s program at Chicago State University, where she is dean. “All of these young, aspirational folks who want to change the world and make it better,” Mann said of the applicants. She has taught at the Far South Side university for 18 years. “I vaguely remember being that person,” Mann added with a laugh. Mann said she, like the applicants to her program, chose a career in social work to help others despite relatively low pay, long and intense hours and the requirement for a costly master’s degree. But Mann now worries that upcoming changes to federal lending will imperil that already fragile pipeline.
The Impact of Federal Loan Limits
Signed into law in July, President Donald Trump’s legislative package — called the One Big Beautiful Bill Act — caps the amount of federal debt students can take on to pursue graduate degrees. Starting July 2026, students will only be allowed to borrow $20,500 from the federal government per year. Master’s degrees in social work can cost upwards of $45,000 a year, particularly at private universities — and in most cases a graduate degree is needed to work in the field.
Chicago State University/Sun-Times file
Concerns from Higher Education Researchers
Conservative lawmakers who pushed for the caps hope they’ll incentivize universities to bring down their graduate tuition costs, which have more than doubled since 2000, according to Georgetown University’s Center for Education and the Workforce. But higher education researchers say that is not realistic, especially because universities have been losing federal funding under the Trump administration. And the new borrowing caps don’t come with corresponding tuition caps, Peter Granville, a fellow at the left-leaning Century Foundation, wrote in a recent analysis. “The rub is that colleges cannot reverse years of price increases overnight,” Granville wrote. “Students will still face high tuition bills and living costs despite the new borrowing limits, and they will shoulder the burden of this change if they want to continue to pursue higher education.”
Impact on Social Work Students
Mann said most of her students work to pay their way through graduate school but also have to take out federal student loans to fund their degrees, just as she did. “The student who comes in with that motivation and that desire because of their own lived experience to serve others — that same passion [didn’t necessarily come] with a bank account that had saved up all the monies that were needed,” said Mann, who grew up four blocks from Chicago State. Federal loans have been a helpful resource for low-paying professions like social work that require master’s degrees. They don’t require a minimum credit score and have more affordable repayment options and lower interest rates than private loans.
Concerns from Social Workers
Social workers in Illinois and across the country say the new limits will stymy efforts to get more people, especially those from diverse backgrounds, into their field. Nationally, there are far fewer social workers working than are required to meet the needs of communities. “[The limits] could result in gaps and shortfalls,” Mann said. “For [students] who are already working and working full time and potentially trying to support a household and/or children and/or maybe even caregiving, all of whom we’ve met, those issues may be insurmountable. So that’s of course our greatest anxiety about it.” Marissa Bohrer, a licensed clinical social worker who obtained her master’s degree in 2019, said the broader community will suffer too. She works in the Edgewater neighborhood on Chicago’s Far North Side. “This is not just caps on student borrowing,” said Bohrer, who helps members of the LGBTQ-plus community cope with mental health challenges. “It’s going to mean fewer social workers in the field. [That’ll exacerbate] the mental health crisis that we already have in this country, which means increased violence, increased homelessness, increased utilization of social services like food pantries and things that are already so bogged down.”
The Broader Implications
Bohrer said the new limits leave aspiring social workers with two bad options: Abandon the career or take out private loans, which have higher interest rates, are less regulated and lack affordable, income-based repayment options. “If I was choosing between a predatory loan service or not going to school, I really don’t know what I would have done,” Bohrer said.
Conclusion
The new federal loan limits have sparked concerns among social work educators and professionals, who fear that the caps will discourage prospective students from pursuing careers in social work. The field already faces challenges in attracting and retaining professionals, and the new limits may exacerbate these issues. As the demand for social workers continues to grow, it is essential to consider the potential consequences of these limits and work towards finding solutions that support the development of a diverse and skilled workforce.
FAQs
Q: What are the new federal loan limits for graduate students?
A: Starting July 2026, students will only be allowed to borrow $20,500 from the federal government per year.
Q: How will the new limits affect social work students?
A: The new limits may make it more difficult for social work students to afford their education, potentially leading to a decrease in the number of students pursuing careers in social work.
Q: What are the concerns of social workers and educators regarding the new limits?
A: Social workers and educators are concerned that the new limits will stymy efforts to get more people, especially those from diverse backgrounds, into the field, and may exacerbate the mental health crisis and other social issues.
Q: What are the potential consequences of the new limits?
A: The new limits may lead to a decrease in the number of social workers, exacerbating the mental health crisis and other social issues, and potentially resulting in gaps and shortfalls in social services.
