Judge blocks Trump education rule, preserving higher graduate loan caps

A federal judge in Washington temporarily blocked the Education Department’s definition of “professional degree” on June 25, preserving higher federal borrowing caps for graduate students in health fields just days before the rule was due to start. The rule, finalized April 30 and set for July 1, would have capped most graduate students at $20,500 a year and $100,000 total, while students in designated professional programs could borrow up to $50,000 a year and $200,000 overall.

Judge Beryl Howell’s order froze the department’s definition while litigation continues, leaving unresolved which graduate programs qualify for the higher limit. The department listed 11 professional programs: pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, theology and clinical psychology. Nursing was left out, a decision that prompted immediate criticism from nurse and physician associate groups.

Jennifer Mensik Kennedy, president of the American Nurses Association, warned that “Americans should be very concerned about the impact of this proposal on patient care.” The average cost of attendance for nursing graduate students is over $30,000 a year, above the annual cap the department tried to impose on most graduate borrowers. Education Department data showed 76% of PA student borrowers in 2023-24 relied on federal loans beyond the $20,500 annual cap, making the lower limit an immediate barrier for many students.

The legal challenge was brought by the American Association of Nurse Practitioners and physician associate organizations, and a separate lawsuit was filed by 25 states and Washington, D.C. against the department over the loan limits. New York Attorney General Letitia James said the rule would make it harder for students pursuing nursing, physical therapy and physician assistant studies to afford training and would worsen the health care workforce shortage. The Education Department is reviewing the order and will take appropriate action.