The College of Clinical Psychologists says the Government's plan to stop allowances for postgraduate students will have long term consequences and costs.
Under changes announced in the Budget in May, people doing masters or doctoral degrees will no longer be eligible for a student allowance from next year and will have to put their living costs on a loan.
College of Clinical Psychologists executive director Caroline Greig says the reduction will adversely affect the country's ability to develop the clinical psychological workforce.
Ms Greig says many trainees may not look at options such as clinical psychology which requires extensive postgraduate training.
She says this may result in a reduced representation of minority groups in the sector.