What criteria does the DOE use to reclassify institutions and how are appeals evaluated?

Checked on December 9, 2025
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Executive summary

The Department of Education (ED) and other agencies use defined regulatory categories and specific procedural offices to reclassify programs or make administrative determinations; recent reporting shows ED proposed reclassifying many advanced degrees (e.g., nursing, public health) from “professional” to “graduate” for federal loan rules, though that proposal had not been finalized at the time of fact-checking [1]. Appeals of departmental decisions are handled through formal adjudicatory bodies — the ED Office of Hearings and Appeals (OHA) for education matters and analogous Offices of Hearings and Appeals in agencies such as the Department of Energy for DOE-specific matters — using published procedural rules [2] [3] [4].

1. What “reclassification” means in recent ED debates

Media and specialty outlets describe a proposed ED rule that would relabel many advanced degrees — nursing, social work, public health, physician assistant and similar programs — from “professional” degrees to ordinary graduate degrees for purposes of federal student-loan policy; that relabeling would lower borrowing limits for students in those programs and thereby change financial access dynamics [5] [6]. Snopes’ reporting emphasizes that as of its write-up the measure was a proposal, not a completed reclassification, and ED defended its position as an interpretation of an older federal definition [1].

2. The criteria ED cites (and how reporting frames them)

Available reporting indicates ED’s approach rests on definitions in federal regulation and an agency interpretation of which fields meet the historical regulatory definition of “professional degree.” Snopes notes ED’s claim that it is returning to a definition first outlined in 1965 and that the agency’s interpretation is narrower than many institutions expect [1]. Outside commentary frames the change as motivated by concerns about loan exposure and return-on-investment for degrees that historically allowed higher Grad PLUS borrowing [6].

3. Implications emphasized by stakeholders

Healthcare and higher-education observers argue the reclassification would reduce borrowing capacity for students in affected programs, with critics warning about access and workforce impacts (nursing organizations, specialty sites) and proponents characterizing the step as a correction to overly broad loan availability that helped drive tuition increases [7] [6]. Ensora Health summarizes the practical consequences: lower federal borrowing caps for students if programs lose “professional” status [5].

4. Where appeals of classification or administrative decisions go

When a department-level decision is contested, the established path is an administrative appeal to the department’s hearings office. For ED decisions that fall within its adjudicatory remit, appeals proceed to the Office of Hearings and Appeals (OHA), which provides an independent forum and publishes decisions after review [2]. The DOE (Department of Energy) has an Office of Hearings and Appeals with procedures and a procedural rule set in 10 CFR Part 1003 that governs adjudications before that office [3] [4].

5. How appeals are evaluated in practice (administrative procedures)

Federal procedural rules and each office’s published practices determine how appeals are evaluated: OHA handles disputes arising under Title IV and other education programs and reviews preliminary departmental findings; decisions are rendered after an adjudicative process that can include filings, hearings, and review of administrative records [2]. The DOE’s hearings offices similarly operate under formal rules and delegation documents; Federal Register notices explain timely procedures, comment responses, and effective dates for rule changes that can affect jurisdictions and remedies [8] [4].

6. Limits of current reporting and where detail is missing

Available sources do not provide a single, detailed checklist of objective criteria ED uses to convert a specific program’s regulatory classification — rather, reporting describes an interpretive shift and points to underlying regulatory definitions [1] [6]. Sources do not supply an ED-issued step-by-step appeals playbook for program reclassification claims; they do show that adjudicatory bodies (OHA and agency-specific hearing offices) and federal procedural rules govern how appeals proceed [2] [4].

7. Competing narratives and implicit agendas

Two competing frames appear in the record: ED and supporters present the move as rule-consistent and fiscally corrective — reducing loan exposure for degrees with weaker ROI — while critics (professional organizations, some institutions) argue the change will reduce access and harm workforce pipelines such as nursing [6] [7]. Snopes highlights that some public claims overstated the immediacy of “reclassification,” and that the rulemaking process and legal interpretation remain central battlegrounds [1].

8. Practical takeaways for institutions and students

If you are an institution, professional group, or student affected by the proposed change, the record shows the relevant actions are monitor rulemaking and Federal Register notices, prepare to engage via comments or legal challenge while the rule is not final, and recognize that administrative appeals of final agency actions go to OHA or the agency’s hearings office under published procedures [1] [2] [4]. Sources do not detail bespoke timelines or evidentiary checklists for program-by-program reclassification appeals beyond these procedural venues (not found in current reporting).

Want to dive deeper?
What specific criteria does the Department of Education use to reclassify a college or university?
How does the DOE weigh student outcomes like graduation and loan default rates in reclassification decisions?
What is the formal appeals process for institutions contesting a DOE reclassification?
Which evidence and documentation strengthen an institution's appeal against DOE reclassification?
How have recent policy changes (post-2023) affected DOE standards for institutional reclassification?