Court Halts Trump Administration's Restrictions on Student Loans
WHO:
ABC News - U.S. District Judge Beryl Howell issued the ruling.
AP News - The American Association of Nurse Practitioners was one of the groups that sued against the loan restrictions.
AP News - Eight groups representing nurse practitioners, therapists, public health workers, speech language pathologists, and physician assistants were involved in the lawsuit.
WHAT:
Fast Company - The new rules set limits for graduate programs at $100,000 and professional degrees at $200,000, with annual borrowing limits of $50,000 for professional degrees and $20,500 for other graduate degrees.
Fast Company - The rule was set to take effect on July 1.
AP News - The loan caps were passed as part of the One Big Beautiful Bill Act.
AP News - The Education Department's updated definition of a “professional degree” included a requirement that professional degree holders “must work free from another professional’s supervision.”
AP News - The Education Department stated it is “reviewing the order and will take appropriate action” regarding the ruling.
ABC News - A federal judge blocked part of a Trump administration plan that would have limited access to loans for students pursuing graduate degrees in nursing, physical therapy, public health, and other fields.
AP News - The new rules set limits on federal student loans, capping graduate programs at $100,000 and professional degrees at $200,000.
AP News - The ruling paused the Education Department’s updated definition of a “professional degree” but did not stop the loan caps themselves.
WHERE:
AP News - The ruling was issued in the United States.
WHEN:
AP News - The loan caps were set to take effect in July.
WHY:
Fast Company - The judge ruled that the change likely violated the Administrative Procedures Act and that the administration didn’t have the authority to narrow the definition of what constitutes a “professional” degree.
AP News - The groups alleged that the new loan limits would force students to forgo their education or take on burdensome private loans, which they argued would be detrimental to the public.
AP News - The groups alleged that the new loan limits would force students to forgo their education or take on burdensome private loans.
AP News - Judge Howell expressed concerns that the loss of opportunities for prospective students would be “detrimental to the public, particularly in underserved communities that may face a shortage of healthcare and other critical professional services.”
HOW:
Fast Company - The Education Department stated it looks forward to implementing the RISE [Reimagining and Improving Student Education] student loan provisions and offering new, affordable repayment plans on July 1.
AP News - The ruling paused the Education Department’s updated definition of a “professional degree” but did not stop the loan caps themselves.
AP News - The Education Department defined certain fields as professional programs, including pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, and theology.
(UPDATED June 26, 2026 15:43 UTC)
A judge has ruled that the Education Department's new borrowing limits for graduate and professional degrees likely violate the Administrative Procedures Act, stating the administration lacked the authority to redefine what constitutes a "professional" degree. As a result, the new rules, which were set to take effect on July 1, will not be implemented as planned. The Education Department has expressed its intention to move forward with the RISE student loan provisions and introduce new, affordable repayment plans on that same date.
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(UPDATED June 26, 2026 10:09 UTC)
The Education Department's updated definition of a "professional degree," which requires degree holders to work free from another professional's supervision, is currently under review following a ruling that paused its implementation. This ruling comes as part of the One Big Beautiful Bill Act, which also introduced new loan caps that critics argue could force students to abandon their education or rely on costly private loans. While the ruling has halted the definition change, it does not affect the loan caps themselves, leaving many concerned about the future of student financing.
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(UPDATED June 26, 2026 08:12 UTC)
A federal judge has blocked part of a Trump administration plan that aimed to limit access to loans for students pursuing graduate degrees in fields like nursing and physical therapy. U.S. District Judge Beryl Howell issued the ruling after eight groups, including the American Association of Nurse Practitioners, argued that the new loan caps would force students to abandon their education or rely on costly private loans. The judge expressed concerns that these restrictions would harm underserved communities facing shortages in healthcare and other essential services, as the loan caps were set to take effect in July.