A federal judge issued a temporary block on a new Trump administration rule limiting how much certain graduate students can borrow for tuition, preventing the policy from taking effect this summer.
U.S. District Judge Beryl Howell in Washington froze key provisions of the federal student loan caps established by the U.S. Department of Education under President Donald Trump’s tax and spending bill, known as the “one big beautiful bill act.”
Under the new regulations, most graduate students would face an annual borrowing cap of $20,500, while professional students could borrow up to $50,000. Previously, graduate students were able to borrow unlimited amounts up to their program costs.
Howell’s order specifically blocked the Education Department’s definition of “professional degree,” which the administration had limited to 11 categories including medicine, dentistry and theology. This exclusion affects fields such as nursing, education, public health and marriage and family therapy.
Plaintiffs including the American Association of Nurse Practitioners argued the rule “arbitrarily and capriciously” defined professional degrees, creating significant challenges for excluded fields.
“We are pleased that those who rely on the Direct Loan Program to contribute to their communities by seeking degrees in nursing, public health, education, and marriage and family therapy will be able to do so,” said Skye Perryman, president and CEO of Democracy Forward, which represented the plaintiffs.
While Howell blocked the professional degree definition, she did not stop the government from enforcing the broader graduate loan caps. She acknowledged this left plaintiffs frustrated over the elimination of uncapped borrowing.
Carlos Barria | Reuters
