Federal Judge Blocks Trump Administration's Plan to Reduce Federal Student Loan Limits for Graduate Students in Healthcare Fields
A federal judge has halted the Trump administration's plan to reduce federal student loan limits for graduate students in healthcare fields, including nursing. The ruling came in response to a lawsuit filed by several trade organizations, arguing against the new rule set to take effect on July 1. The Education Department, which proposed the caps, did not comment on the decision.
The rule, part of the One Big Beautiful Bill Act passed by the Republican-led Congress in 2025, aimed to limit borrowing for graduate students pursuing professional degrees. Under the new limits, students in programs like law and medicine could borrow up to $50,000 per year and $200,000 total, while other graduate students were capped at $20,500 per year and $100,000 overall.
The judge, appointed by President Obama, found that Congress had adopted a previous definition of "professional degree" when enacting the 2025 law, limiting the Education Department's authority to change it. As a result, the rule violated the Administrative Procedure Act and was blocked from implementation.
While the ruling stopped the new loan caps from taking effect, it did not prevent the existing limits from being enforced. The decision highlighted the challenges faced by graduate students in accessing uncapped borrowing for their education.
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