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Three Dimensions of Graduate Degree Reclassification
Episode 05 | January 2026
Three Conversation Topics:
- The Federal Policy Changes: What's Shifting in Graduate Financial Aid
- The Campus Response: Implications for Enrollment Strategy and Operations
- The Student Experience: Access, Affordability, and Career Outcomes
Summary
Starting July 1, 2026, significant changes to federal graduate student loans will reshape how students finance their education. In this episode, Steve Taylor and Craig Cornell break down the elimination of the Graduate Plus loan, the new professional degree classifications, and what these policy shifts mean for graduate enrollment. They explore the federal changes taking effect, discuss the operational and strategic implications for campuses, and examine how these changes will impact student access, affordability, and institutional communication strategies. Whether you're in enrollment management, financial aid, or graduate program leadership, this conversation offers practical guidance for navigating one of the most significant policy changes in graduate education funding.
TOPICS: Graduate — Financial Aid
Key Moments in This Episode
Topic 1 | The Federal Policy Changes: What's Shifting in Graduate Financial Aid
[03:11] Introduction to Degree Reclassification Changes
Steve and Craig set the stage for understanding how federal degree classifications determine student aid eligibility and why these designations matter more than ever for graduate enrollment leaders.
[04:15] The Graduate Plus Loan Explained
Craig breaks down the history and purpose of the Graduate Plus loan. It was a safety net that allowed students to borrow beyond the base federal limits to cover not just tuition, but living expenses, transportation, and full-time study costs. Over 440,000 students relied on this funding mechanism last year.
[06:00] What's Changing on July 1st
Graduate Plus loans are being eliminated for new students. Craig details the new borrowing limits—$100,000 lifetime for non-professional programs versus $200,000 for professional programs—and explains why existing students will maintain their current loan options while new students face a drastically different landscape.
[07:40] Professional vs. Non-Professional Designations
Craig reads the definitive list: only pharmacy, dentistry, vet medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, theology, and clinical psychology qualify as "professional programs." Nursing, social work, education, physical therapy, MBAs, and many others are classified as non-professional. This designation will shape students' financial futures.
Topic 2 | The Campus Response: Implications for Enrollment Strategy and Operations
[17:25] What President's Cabinets Are Discussing Right Now
Craig shares insider perspective on campus-level conversations happening now. From program viability assessments to scholarship strategy reconsiderations, learn what questions executive leaders are asking about enrollment projections, borrowing levels, and institutional responses.
[20:05] Communication Strategy for Current Pipeline
Steve and Craig discuss the urgency of communicating cost of attendance changes to prospective students. Craig's recommendation: double down on relationship building through individual financial aid counseling, special webinars, and faculty-led communications. Program-specific landing pages need clear cost information, outcomes data, and support pathways.
Topic 3 | The Student Experience: Access, Affordability, and Career Outcomes
[08:58] What Graduate Plus Loans Actually Covered
Steve and Craig debunk the myth that these loans funded luxury experiences. The reality: students used these funds for suits for job interviews, rent during full-time study, and essential travel for internships and career opportunities. This wasn't about trips to Switzerland—it was about making graduate education possible.
[13:05] Impact on Access and Equity
These changes will likely disproportionately affect low-income and minority students as the only option now for these additional funds will be private bank loans that historically carry higher interest rates and do not have many of the benefits on repayment options that the Grad PLUS loans had. Craig warns that eliminating the safety net may also push students toward only high-paying professions or force them into part-time study that extends programs from two years to six years.
[24:48] The Power of Outcomes Data
If you don't have comprehensive outcomes data yet, start with student stories. Craig and Steve discuss why clear ROI communication—average starting salaries, job placement rates, licensure passage rates—becomes essential when students face higher private loan burdens and need justification for the investment.
[28:15] Final Takeaway: Removing Hurdles
Craig's elevator pitch to university presidents: be aggressively open in communication and work to eliminate every possible hurdle for students. For first-generation graduate students especially, any barrier can become a stopping point. The institutions that succeed will be those that proactively support students through this transition with dedicated teams and clear pathways forward.
Check out more resources to improve your enrollment management strategy.
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Featuring
Stephen Taylor
Vice President, Enrollment Strategy, Liaison
Steve joined the Liaison team in 2020 after almost 20 years in higher education administration. Leading teams and driving innovation at schools like Harvard Business School and ASU’s W. P. Carey School of Business, Steve’s experience has focused on the intersection of people, process, and systems as drivers of smart growth. His most recent school position was as Associate Dean for Arizona State University’s W. P. Carey School of Business, where he led the unit responsible for all graduate business programs. He holds undergraduate degrees in General Studies and Information Systems and graduate degrees in Business Administration and Philosophy.
Craig Cornell
Vice President of Enrollment Strategy, Undergraduate and State Systems, Liaison
Craig Cornell is the Vice President for Enrollment Strategy at Liaison. In that capacity, he oversees a team of enrollment strategists and brings best practices, consultation, and data trends to campuses across the country in all thingsenrollment management. Craig also serves as the dedicated resource to NASH (National Association of Higher Education Systems) and works closely with the higher education systems that Liaison supports. Before joining Liaison in 2023, Craig served for over 30 years in multiple higher education executive enrollment management positions. During his tenure, the campuses he served often received national recognition for enrollment growth, effective financial aid leveraging, marketing enhancements, and innovative enrollment strategies. Craig has published, consulted, been a keynote speaker, served on multiple boards, chaired national committees, and has presented for many state and national organizations on the many facets of strategic enrollment management and effective financial aid leveraging.
Disclaimer: Please note that the views and opinions expressed by the participants of 'Three in 30' are their own and do not necessarily reflect those of Liaison.