A federal court blocked the Education Department’s narrowed definition of professional degrees late Wednesday, temporarily halting a Trump administration rule that would have sharply limited federal student loans for nursing students and those pursuing other graduate fields.
U.S. District Judge Beryl Howell issued the preliminary injunction in response to a lawsuit filed in May by eight trade organizations, including the American Association of Nurse Practitioners and the PA Education Association. The groups argued that the department’s definition of professional degree was likely inconsistent with what Congress intended when it created new student loan caps in the One Big Beautiful Bill, signed into law last summer.
The Education Department released its final rule on April 30, 2026, limiting the definition of professional degrees to 11 specific programs: pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, theology, and clinical psychology. The rule also added new criteria, such as requiring that professional programs be “generally at the doctoral level” and that practitioners work unsupervised by those with “more education, training, and qualifications.”
In her ruling, Judge Howell found that Congress, by adopting a preexisting definition when creating the loan caps, removed any discretionary authority the department had to narrow the definition. “By adopting the preexisting definition as it was in effect on a specific date, Congress removed any discretionary authority the Department may have had to narrow the definition for the purpose of determining federal loan caps,” Howell wrote.
The new loan structure under the One Big Beautiful Bill creates a two-tier system. Students in professional degree programs can borrow up to $50,000 annually and $200,000 total, while those in other graduate programs face annual limits of $20,500 and a lifetime limit of $100,000. The rules were set to take effect July 1, 2026.
Health care and education groups have argued that the narrow definition will worsen workforce shortages and make it harder for low-income and first-generation college students to afford graduate school. Nursing groups have been the most vocal opponents, noting that excluding graduate nursing degrees from the professional category could shrink the pool of people pursuing degrees needed to teach the next generation of nurses. The Education Department has countered that 95 percent of nursing students borrow below the annual loan limit and would not be affected by the new caps.
The judge’s order temporarily requires the department to use the law’s original criteria for professional programs, but it does not block the administration from moving forward with the overall loan limits themselves. An Education Department spokesperson said the agency is “reviewing the order and will take appropriate action.”
Sources
- The Washington Post — Court ruling details, judge’s reasoning, and department response
- Higher Ed Dive — Court injunction analysis and professional degree definition criteria
- Federal Register — Education Department final rule on loan limits effective July 1, 2026
