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Federal Student Loan Changes and Their Implications for the Occupational Therapy Workforce

The U.S. Department of Education’s Reimagining and Improving Student Education (RISE) Committee recently agreed to rule changes to federal student loans. This has raised significant concerns for occupational therapy and many other health professions. The changes create uncertainty for current and prospective OT and OTA students, academic programs, and the broader healthcare workforce. Ensuring strong and accessible pathways into the profession is essential, and this decision threatens to disrupt the pipeline at a time when workforce shortages already impact access to care.

Importantly, the new rules do not categorize OT and OTA degrees as professional degrees, thereby limiting the amount of federal loans prospective students can receive. Occupational therapy programs prepare graduates for independent clinical practice through rigorous education, clinical reasoning, and ethical standards, yet the rules do not recognize the profession accordingly. Under the proposed borrowing limits, future students will have significantly reduced access to federal loan options, which may limit entry into the field and affect program sustainability.

This misalignment has real implications:

  • It may reduce the number of students entering OT and OTA programs.
  • It could threaten program viability, particularly in underserved regions.
  • It risks widening workforce shortages and limiting access to essential rehabilitation services.
  • It places additional strain on a workforce already experiencing burnout and increased demand.

NBCOT has taken several steps to ensure the profession’s voice is part of the federal conversation. We submitted formal comments to the Department of Education outlining our concerns and providing data to inform their understanding of the ruling’s potential impact on the OT workforce. We also coordinated with the American Occupational Therapy Association (AOTA) to amplify federal advocacy efforts, recognizing AOTA’s central role in legislative engagement on behalf of the profession.

In addition, we have been in direct communication with the office of Congressman Tim Kennedy—an occupational therapist and the representative of New York’s 26th District—to share workforce data and discuss the implications of restricted federal loan access for students pursuing OT and OTA education. Congressman Kennedy has since introduced the Loan Equity for Advanced Professionals (LEAP) Act, which seeks to address disparities in federal loan limits affecting graduate-level health professions. NBCOT continues to engage as a data and workforce resource to policymakers as these discussions evolve.

Strengthening the Workforce Through Awareness

Pipeline challenges do not begin with these rule changes; they are part of a broader decline in applications to OT and OTA programs. NBCOT’s Why Choose OT? campaign was created to address this long-standing issue by raising awareness of the profession, supporting prospective students, and increasing visibility at the national level. While awareness alone cannot solve the financial barriers introduced by the new rules, strengthening the pipeline remains a key part of our commitment to supporting the future workforce.

A Message from Our CEO

“The Department of Education’s rule changes present real challenges for future practitioners and for the communities they serve. Clear and accessible pathways into the OT profession are essential for a sustainable workforce and for ensuring access to high-quality care. With the cost of OT education already a significant barrier for many prospective students, it is crucial that nothing further restricts entry into the field. NBCOT will continue to support the profession through data gathering and sharing, collaborative partnerships, our Why Choose OT? campaign, and a firm commitment to protecting the public.”

Angela Macauley

President & CEO, NBCOT

How You Can Help

Contacting your federal representatives is essential. We urge you to share how the Department of Education’s rule changes affect students entering OT and OTA programs, the stability of academic programs in your state, and the workforce capacity needed to meet community demand. Your perspective helps legislators understand what is at stake and why maintaining strong, sustainable pathways into the profession is critical for the future of occupational therapy.

You can identify and contact your elected officials using publicly available tools:

As part of our commitment to amplifying AOTA’s federal advocacy efforts, individuals who wish to participate in organized advocacy may also choose to use AOTA’s VoterVoice platform, which provides templates and tools for contacting Congress.

NBCOT will provide updates as more information becomes available.