U.S. District Judge Beryl Howell issued a preliminary injunction late Wednesday, halting a key component of a rule that was set to take effect in July and would have capped federal loans for graduate and professional programs. The ruling specifically targeted the Education Department’s updated definition of a “professional degree” for loan purposes.
The Trump administration's plan, part of the One Big Beautiful Bill Act, aimed to limit graduate student loan amounts to $100,000 for designated “graduate” programs and $200,000 for “professional” degrees. Previously, students could borrow up to the cost of their education.
Fields designated by the Education Department as professional programs included pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry and theology. The lawsuit, filed by eight groups representing students and professionals in fields such as nursing, physical therapy, public health, speech-language pathology, and physician assistant programs, alleged that the new limits would force students to abandon their education or seek out private loans with burdensome terms.
Judge Howell stated that the Education Department overstepped its congressional authority by imposing new, more stringent requirements for defining a professional degree, specifically the requirement that holders must work without supervision. The judge expressed concern that restricting access to these loans would be detrimental to the public, particularly in underserved communities facing shortages of healthcare and other essential professional services.
While the ruling does not eliminate the loan caps themselves, it prevents the administration from implementing them based on its revised definition of professional degrees. The American Association of Nurse Practitioners, one of the plaintiffs, called the decision an important step for students and the future healthcare workforce.
The Education Department has indicated it is reviewing the order and will take appropriate action. The department had previously defended the loan caps, arguing they would encourage institutions to reduce tuition costs. A separate lawsuit challenging the loan caps filed by a coalition of Democratic-led states remains pending.