Students pursuing graduate degrees in nursing, physical therapy, and several other fields will be eligible for higher federal student loan amounts after a federal judge blocked part of a Trump administration rule that had imposed lower limits. The U.S. Education Department issued a revised rule this week to comply with the judge's order.
Education Department officials stated that the change is temporary as they intend to contest the judge's decision in court. Undersecretary Nicholas Kent said in a statement that the department "will continue to make the case that the definition is both lawful and appropriate." The original rule had defined medicine, law, and other fields as “professional programs” while excluding fields like nursing, leading to different loan caps.
The legal challenge was brought by eight groups representing nurse practitioners, therapists, speech-language pathologists, and others. They argued that the rule would force students to abandon their studies or seek riskier private loans. Some graduate nursing programs, particularly in high-demand specialties like nurse anesthesia, can exceed the lower $100,000 loan cap.
The student loan overhaul, part of a tax bill passed under the Trump administration, established federal loan caps of $200,000 for programs designated as professional degrees and $100,000 for other graduate programs. Previously, graduate students could borrow up to the full cost of their degree. The administration had aimed to control student debt and curb tuition inflation with these new caps.
Under the revised, temporary rule, the list of professional degree programs has been expanded to include 29 specific programs. Among those newly added are master of science in nursing, doctor of nursing practice, doctor of nurse anesthesia practice, physical therapy, athletic training, speech-language pathology, physician associates, and anesthesiologist assistants. Degrees in theology, however, are among those now classified as non-professional, subjecting their students to the lower loan limit, though the master of divinity degree remains on the professional list.
U.S. District Judge Beryl Howell in Washington ruled against the Education Department's recent definition, calling it a "misguided" interpretation that deviated from a definition established by Congress. The department's criteria for professional degrees included a completion time of generally six years, requiring licenses to practice, and not leading to employment supervised by professionals with more education. The department expects its original rule to be upheld in court and cautioned that the amended rule might change as litigation progresses.
A separate lawsuit challenging the loan caps, filed by a coalition of Democratic-led states, is still pending.