A federal judge has paused part of the Trump administration’s student loan changes after finding fault with how the Education Department defined “professional degree” programs. The ruling preserves a major source of borrowing access for graduate students in fields that were left out of the new definition.
The dispute centers on caps on federal student loans that were approved in the One Big Beautiful Bill Act and were set to take effect in July. Under the new limits, graduate programs classified as “graduate” would be capped at $100,000, while professional degrees would be capped at $200,000.
Who Was Left Out
The Education Department listed pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry and theology as professional programs. Fields such as nursing, physical therapy, public health, speech language pathology and physician assistant programs were not included.
Eight groups representing nurse practitioners, therapists, public health workers, speech language pathologists, physician assistants and others sued over the policy. They argued that students would be pushed to skip their education or turn to private loans with heavier burdens.
In pausing the department’s updated definition late Wednesday, U.S. District Judge Beryl Howell said the agency added “more stringent requirements” that Congress did not authorize. One of those requirements said professional degree holders “must work free from another professional’s supervision.”
Howell also said the change could reduce opportunities for prospective students in ways that would be “detrimental to the public,” especially in underserved communities that may already face shortages of healthcare and other critical professional services.
What The Ruling Does And Does Not Change
| Policy Issue | Status After Ruling |
|---|---|
| Definition of “professional degree” | Paused by the court |
| Federal student loan caps | Still in place |
| July effective date for the caps | Still described as the planned start |
The ruling does not block the loan caps themselves, only the department’s updated definition of a professional degree. The Education Department said in a written statement that it is “reviewing the order and will take appropriate action.”
AP reported that the department had previously defended the caps, saying they were already encouraging colleges and universities to lower tuition. A separate lawsuit from a coalition of Democratic-led states that also challenges the caps remains pending.