AICPA President Defends Accounting’s Status Amid Degree Reclassification

The Department of Education’s recent move to exclude accounting from its list of “professional” degrees has sparked considerable backlash. This decision, part of the Reimagining and Improving Student Education (RISE) initiative, has significant implications for federal student lending practices. As a result, accounting graduates may face substantial financial hurdles in obtaining advanced degrees.

A New Definition of Professional Degrees

In the latest draft regulations, the Education Department defined which graduate degrees qualify as “professional.” Fields such as nursing, engineering, education, and architecture were also excluded. This determination affects federal student loan eligibility, setting borrowing limits at $50,000 annually and a total of $200,000 for designated fields. By contrast, students in other disciplines, including accounting, see loan limits capped at $20,500 per year and $100,000 total.

Response from Accounting Organizations

• The American Institute of CPAs (AICPA)
• The National Association of State Boards of Accountancy (NASBA)
• The American Accounting Association (AAA)

In response, major accounting organizations have voiced their opposition. AICPA President Mark Koziel emphasized that accounting is a distinguished profession characterized by integrity and rigorous standards. He expressed concern that this classification could diminish public perception of the accounting field.

Concerns Over the Future of Accounting

Accounting leaders worry about the long-term implications of this ruling. Daniel Dustin, NASBA’s president, highlighted the potential negative impact on students considering accounting careers. He argued that public perception of the profession’s status is crucial for attracting future talent.

Mark Beasley, AAA’s president, similarly stressed that the cap on federal loans could deter students from pursuing graduate degrees in accounting. The average cost of a master’s degree in accounting ranges from $25,000 to $70,000. Many institutions charge tuition that exceeds the proposed federal loan maximum.

The Impact on Graduate Education

Should this ruling stand, prospective students may have to seek alternative financing methods for their education. This situation would likely reduce enrollment in accounting programs, which have already seen a 38% decline in master’s degree completions from 2017-18 to 2023-24.

Potential Consequences for the Accounting Workforce

Should fewer students enter graduate programs, the future supply of accounting educators may dwindle. Many current educators are nearing retirement, raising alarms about a potential faculty shortage in the coming years.

The Department of Education’s ruling will officially take effect in July 2026, following a public comment period. As professional organizations continue to advocate for change, the future status of accounting as a recognized profession remains at stake.