Certifications vs. Degrees vs. Licenses in Psychology. What’s the Difference?

If you're exploring a career in psychology, counseling, or mental health, one of the first things you'll encounter is a tangle of confusing terms: graduate programs, licensure paths, accredited degrees, coaching certificates. It can feel like you need a psychology degree just to understand how to understand this!

One of the most common questions students ask is this: What’s the difference between a certification, a degree, and a license? 

It’s actually pretty simple. To summarize:

  • Certifications: Qualifies you as a coach. Examples: Embodylab, Somatic Experiencing, IFS.

  • Master’s Degree: Allows you to call yourself a therapist. Must come from a licensed higher education institution (that’s us!)

  • License: Requires a master’s degree + additional supervision & a test, so you can bill insurance.

In this guide, we’ll unpack what a psychology master’s degree actually does (and doesn’t) provide, how licensing really works in the U.S., whether a license is required (spoiler: it’s not), and whether licensure is even the right path for the kind of work you want to do.

What Is a Professional Certification

A professional certification is not a degree, and it’s not a license. It’s regulated entirely by the company offering the certification. While it offers you professional recognition and valuable training, on its own, it does not allow you to practice as a therapist or licensed clinician. Professional certifications are often taken by students wanting to start coaching or existing therapists who want new training.

Why get a Master’s Degree in Psychology?

master’s degree in psychology is a graduate-level academic program that usually takes 1.5–3 years to complete. Depending on the program, it may be:

  • Research-oriented (for students planning to pursue a PhD)

  • Clinically focused (for those seeking clinical practice or licensure as therapists)

  • Alternative or holistic (for coaching, somatics, or other non-licensed roles)

Common degree titles include:

  • MA in Psychology

  • MS in Psychology

  • MA in Counseling Psychology

  • MA in Clinical Mental Health Counseling

  • MA in Integrative or Holistic Psychology

Graduating from one of these programs typically gives you the academic credential required to apply for a license.

What Is a License to Practice Psychology or Counseling?

license is a legal credential issued by a U.S. state that authorizes you to offer mental health services as a professional therapist, counselor, or psychologist.

Common U.S. mental health licenses include:

  • Licensed Professional Counselor (LPC)

  • Licensed Marriage & Family Therapist (LMFT)

  • Licensed Clinical Social Worker (LCSW)

  • Licensed Psychologist (requires a PhD or PsyD)

To obtain a license, you typically need:

  1. A qualifying graduate degree

  2. 2,000–4,000 hours of supervised clinical experience (post-graduation)

  3. Passing scores on one or more licensing exams (e.g., NCE, MFT Exam)

  4. A successful application to your state licensing board

Each state has different rules, names, and requirements. The two most important things to know about licensure are:

  1. The only way to truly understand licensure is to research your specific state. There is table below with links to the licensure requirements in each state.

  2. It is optional, but helpful because it allows you to bill insurance and treat more serious mental health issues.


Why This Gets Confusing

Let’s say you complete a master’s in clinical psychology. You’ve got the degree, but unless you:

  • Work under a licensed supervisor for a set number of hours

  • Pass the required state exam(s)

  • Submit background checks and paperwork…

You cannot legally call yourself a licensed therapist, nor can you practice independently under protected titles like “counselor,” “psychotherapist,” or “LMFT.”

This is where many graduates get stuck: they assume the degree is the finish line. But licensure is a second process, managed at the state level, not by your school.


Do You Have to Get Licensed to Work in Mental Health?

No. Licensure is optional, depending on what kind of work you want to do.

There is a growing movement of mental health professionals working outside the licensure system, particularly in:

  • Coaching (e.g., trauma-informed coaching, mental health coaching, relationship coaching)

  • Somatic therapy (non-clinical body-based work)

  • Spiritual counseling, breathwork, or energy work

  • Alternative or integrative psychology models

In these roles, you don’t diagnose or treat mental health conditions. Instead, you focus on personal development, regulation, education, and holistic support.

So if your goal is:

  • To run a coaching or wellness business

  • To work with clients on nervous system regulation, embodiment, or mindset

  • To avoid insurance billing, diagnostic labels, or state-imposed constraints

…then a master’s degree may be enough, without pursuing a license.


When a License Is the Right Fit

That said, licensure is the right path if:

  • You want to bill insurance for therapy services

  • You want to work in hospitals, clinics, or schools that require licensed staff

  • You want to work with serious mental illness or hold a state-regulated title

  • You want the legal protections and infrastructure that come with state regulation

Just know: licensure often limits your scope of practice to models and methods approved by the state. It may restrict the types of modalities you can use (e.g., certain somatic or spiritual tools).


How to Choose the Right Path for You

Ask yourself:

1. What kind of client work do I want to do?
If you want to diagnose, treat, or work with clinical disorders → licensure is likely required.
If you want to focus on growth, stress regulation, embodiment, or spirituality → you may not need one.

2. Do I want to work for a system or build my own practice?
Licensure is often required for salaried clinical jobs. Private coaching practices can be unlicensed.

3. Do I want the flexibility to create my own method or brand?
Licensure can restrict innovation. Alternative or non-licensed practitioners often have more creative freedom.

4. What state am I in, and what are the local laws?
Every state is different. Look up your state’s counselor licensing board (or ask ChatGPT for help!).

StateBoard / AgencyLink
AlabamaBoard of Examiners in CounselingLink
AlaskaBoard of Professional CounselorsLink
ArizonaBoard of Behavioral Health ExaminersLink
ArkansasBoard of Examiners in Counseling & MFTLink
CaliforniaBoard of Behavioral SciencesLink
ColoradoBoard of Licensed Professional Counselor ExaminersLink
ConnecticutDepartment of Public Health – CounselingLink
DelawareProfessional Counselor Licensing BoardLink
FloridaBoard of Clinical Social Work, MFT, & Professional CounselorsLink
GeorgiaBoard of Professional Counselors, Social Workers & MFTLink
HawaiiBehavioral Health Provider BoardLink
IdahoBoard of Professional Counselors & MFTLink
IllinoisProfessional Counselor Licensing & Disciplinary BoardLink
IndianaState Counseling BoardLink
IowaBoard of Behavioral ScienceLink
KansasBehavioral Sciences Regulatory BoardLink
KentuckyBoard of Licensed Professional CounselorsLink
LouisianaBoard of Examiners of Professional CounselorsLink
MaineBoard of Counseling Professionals LicensureLink
MarylandBoard of Professional Counselors and TherapistsLink
MassachusettsBoard of Registration of Allied Mental Health & Human ServicesLink
MichiganBoard of CounselingLink
MinnesotaBoard of Behavioral Health & TherapyLink
MississippiBoard of Examiners for Licensed Professional CounselorsLink
MissouriCommittee for Professional CounselorsLink
MontanaBoard of Behavioral HealthLink
NebraskaBoard of Counselor ExaminersLink
NevadaBoard of Examiners for MFT & Clinical Professional CounselorsLink
New HampshireBoard of Mental Health PracticeLink
New JerseyBoard of Marriage & Family Therapy ExaminersLink
New MexicoBoard of Counselors & MFT ExaminersLink
New YorkOffice of the Professions – CounselingLink
North CarolinaBoard of Licensed Clinical Mental Health CounselorsLink
North DakotaBoard of CounselingLink
OhioBoard of CounselingLink
OklahomaBoard of Licensed Professional CounselorsLink
OregonBoard of Licensed Professional Counselors & TherapistsLink
PennsylvaniaState Board of Social Workers, Marriage & Family Therapists & Professional CounselorsLink
Rhode IslandBoard of Mental Health Counselors and Marriage & Family TherapistsLink
South CarolinaBoard of Examiners for Licensure of Professional CounselorsLink
South DakotaBoard of Examiners for Counselors & Marriage/Family TherapistsLink
TennesseeBoard for Licensing Professional CounselorsLink
TexasBehavioral Health Executive CouncilLink
UtahDivision of Occupational & Professional Licensing – CounselorsLink
VermontBoard of Allied Mental Health PractitionersLink
VirginiaBoard of CounselingLink
WashingtonDepartment of Health – Mental Health CounselorLink
West VirginiaBoard of Examiners in CounselingLink
WisconsinExamining Board of Professional Counselors, Marriage & Family Therapists & Social WorkersLink
WyomingBoard of Mental Health PracticeLink
District of ColumbiaBoard of Professional CounselingLink

Final Advice

If you’re still unsure, start by getting clarity on your desired scope of practice. Do you want to:

  • Work in traditional therapy settings? → Go for licensure.

  • Build an alternative mental health practice that includes bodywork, coaching, or spirituality? → You may not need it.

Whatever path you choose, a master’s degree in psychology can open doors—but it’s not the destination. It’s one step in a much bigger journey toward ethical, impactful, and embodied client work.

Curious about alternative mental health careers that don’t require licensure? Explore the MA in Integrative Psychologyand discover a different kind of path.

Dr. Eliana Voss, PsyD

Dr Eliana is a PsyD from the University of Illinlois Chicago.

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