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The accounting profession faces a perfect storm as federal policy changes threaten to deepen an already critical shortage of incoming CPAs. While the profession grapples with declining enrollment and fewer exam candidates, a new proposal from the Department of Education could make the situation considerably worse.
Under the One Big Beautiful Bill Act, the Department of Education is developing new definitions for "professional degree" programs that will determine federal lending limits. A negotiating committee has proposed designating medicine, dentistry, law, and several other programs as eligible for a $200,000 borrowing limit, while students pursuing other graduate or doctoral programs would be capped at $100,000 in federal loans. The proposed framework conspicuously excludes accounting, along with nursing, architecture, education, engineering, and other traditionally recognized professions.
The AICPA, NASBA, and state CPA societies are vigorously opposing the exclusion. AICPA president and CEO Mark Koziel called recognizing accounting programs as professional degree programs "common sense," noting the rigorous path required to become a licensed CPA, including specific education requirements, passing the CPA exam, and completing supervised work experience. NASBA president and CEO Daniel Dustin emphasized that classifying accountants as anything other than professionals "fundamentally misrepresents the critical work CPAs perform" in maintaining the integrity of global financial systems.
The practical impact is severe. Starting in July 2026, the change would reduce borrowing limits for accounting students to $20,500 per year, compared to $50,000 annually for degrees labeled "professional." This reduction comes at the worst possible time for a profession already hemorrhaging talent.
The numbers paint a stark picture. First-time CPA exam candidates dropped 33% between 2016 and 2021, falling from 48,004 to 32,188. The 2022 exam saw the lowest number of test-takers in 17 years, with a further 7% decrease from 2021. Accounting graduates at the bachelor's and master's levels declined 2.8% and 8.4% respectively in the 2019-2020 academic year. Compounding these challenges, roughly 75% of AICPA members are approaching retirement age, and the pending enrollment cliff anticipated to begin in 2025 will further reduce the pool of traditional college-age students.
The 150-hour education requirement already serves as a significant barrier to entry. Research by Barrios found that the additional 30 credit hours don't improve accountant quality or performance, yet they impose substantial financial burden and opportunity costs on prospective CPAs. Starting salaries in accounting lag behind finance and technology fields by at least 20%, making the extended education requirement even harder to justify for students facing mounting debt.
Now, with reduced loan access layered on top of the 150-hour requirement and lower comparative compensation, the profession risks discouraging an entire generation from pursuing CPA licensure. NASBA plans to engage policymakers to restore accounting to the professional degree category, but time is critical. The department expects to finalize rules early next year, and the accounting profession cannot afford further delays in addressing what has already become an existential threat to its talent pipeline.
Christine Gervais is a licensed CPA, using her skills to help businesses grow and achieve their fullest potential. Christine has a Master’s degree in accounting from Southern New Hampshire University in addition to holding her CPA license for over a decade. Notably, Christine is a nationally recognized speaker providing education to other CPAs on how to best serve clients as well as instruction on a wide variety of topics for business owners on how to maximize success. Christine prides herself on the value she can bring to clients with her extensive tax knowledge and provides strategic, forward-thinking financial strategies to help clients grow. When not behind her desk, you can find Christine spending quality time with her daughter and stepson or tending to the family’s excessively loved farm animals.
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