Court Halts Trump's Proposal to Restrict Graduate Student Loans

WHO:

ABC News - A federal judge has blocked part of a Trump administration plan.

USA Today - Sen. Jeff Merkley, D-Oregon, introduced a measure regarding student loan rules.

USA Today - Sen. Bill Cassidy, R-Louisiana, is the chairman of the Senate's education committee.

WHAT:

ABC News - The judge's ruling blocks access to loans for students pursuing graduate degrees in nursing, physical therapy, public health, and other fields.

USA Today - Senate Republicans rejected a measure to repeal Trump administration regulations on federal student loan caps for graduate school.

USA Today - The new regulations implement an aggregate borrowing limit of $200,000 for certain fields of study, excluding nursing.

USA Today - The law eliminates the Grad PLUS lending program and places limits on Parent PLUS loans.

WHERE:

USA Today - The events took place in Washington, D.C.

WHEN:

USA Today - The Senate vote occurred on June 24, 2026.

USA Today - The new borrowing limits will take effect on July 1, 2026.

WHY:

USA Today - Some congressional Republicans expressed concerns about how the caps could affect shortages in the health care workforce.

USA Today - Sen. Merkley criticized the new rules as a "gift to predatory lenders" that would push borrowers into the private market.

HOW:

USA Today - The changes were passed as part of the "One Big, Beautiful Bill" Act and finalized by U.S. Department of Education regulations.

(UPDATED June 26, 2026 06:22 UTC)

A federal judge has blocked part of a Trump administration plan that restricts access to loans for students pursuing graduate degrees in fields like nursing and physical therapy. In Washington, D.C., Senate Republicans recently rejected a measure to repeal these regulations, which impose a borrowing limit of $200,000 for certain studies and eliminate the Grad PLUS lending program, with the new rules set to take effect on July 1, 2026. Senator Jeff Merkley criticized the changes as a "gift to predatory lenders," raising concerns about their potential impact on the health care workforce.