Thanks to last week's court decision, a large number of graduate students will encounter higher federal loan ceilings than originally forecast. Beginning July 1, new graduate students face a $20,500 yearly federal loan limit under the "one big beautiful bill act," while professional students can borrow as much as $50,000 annually. However, a Washington district judge last week blocked the Education Department's narrowed definition of a "professional degree."
According to Judge Beryl A. Howell in the U.S. District Court for D.C., the Education Department went beyond what Congress intended when it narrowed the definition of professional degrees through its rulemaking. Come Monday, the Education Department released a revised, expanded roster of more than 20 professional degrees, allowing students in those programs to borrow up to $50,000 annually rather than $20,500. Among the qualifying degrees are registered nursing, physician associate, and speech-language pathology.
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Higher education expert Mark Kantrowitz noted that when implementing the "big beautiful bill," the Education Department strayed from the government's traditional understanding of what constitutes a professional degree. Ultimately, the Trump administration identified only 11 degrees - including medicine, dentistry, and theology - that qualified under the new label. A report from EdTrust, a research and advocacy group, indicated that women would be disproportionately affected because they represent over 70% of graduates in programs denied the higher borrowing limits. The American Association of Nurse Practitioners' president, Valerie Fuller, applauded the ruling.
"This preliminary ruling is an important step for nurse practitioner students, the future healthcare workforce and the patients who depend on NPs for access to high-quality care," Fuller said.
The distinction between professional and graduate degrees has long been a point of contention, as professional programs often require higher tuition and longer duration. The original narrowing by the Education Department drew criticism from industry groups and lawmakers who argued it unfairly targeted high-demand fields such as nursing and physician assistant programs. The court ruling restores the broader definition, providing relief to students who might otherwise have faced borrowing constraints that could deter them from pursuing these essential careers.
What Students Should Do Now
Student Loan Savvy founder and certified financial planner Kathleen Boyd, based in San Diego, pointed out that the Trump administration could still modify the list or appeal the decision. Currently, she advises her clients, "not to assume their program is limited to the lower borrowing cap just yet." "I encourage folks to stay connected with their financial aid offices and wait for additional guidance from them," Boyd said.
Worth Noting
Nancy Nierman, who serves as assistant director at New York's Education Debt Consumer Assistance Program, emphasized that the ruling does not remove the borrowing limits established by the big beautiful bill act. For now, the broader list is in effect at least during the court's stay. Students should watch for any further legal moves.
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