A federal judge has temporarily blocked part of a Trump administration rule that would impose stricter federal student loan limits on nursing students and certain professional degree programs. U.S. District Judge Beryl Howell issued the preliminary injunction late Wednesday 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 new borrowing caps were scheduled to take effect on July 1.
The restrictions are tied to the One Big Beautiful Bill, signed into law by President Donald Trump last summer, which differentiates borrowing limits based on whether a student is enrolled in a “professional” or “graduate” program. Previously, students in both categories could borrow up to the full cost of attendance. Under the new law, professional programs would have an annual borrowing cap of $50,000 and a lifetime limit of $200,000, while graduate programs would face a $20,500 annual limit and $100,000 lifetime total.
Congress defines a professional degree as one that generally requires licensure, involves skills beyond a bachelor’s degree, and signifies readiness for entry into a given profession. However, the Education Department narrowed this definition to just 11 programs—such as clinical psychology, dentistry, law, medicine, pharmacy, and veterinary medicine—most of which were cited as examples within the bill. Nursing graduate programs were excluded from this list, prompting objections from nursing groups concerned about tightening loan access.
Supporters of the loan limits, including the Trump administration and conservative lawmakers, argue that the caps are a necessary measure to control rising student debt, given that graduate programs account for 40% of annual federal student loan borrowing. However, critics warn the restrictions could exacerbate workforce shortages by discouraging students, especially those from low-income and first-generation backgrounds, from pursuing advanced degrees in crucial fields such as nursing. Health care advocates emphasize that limiting loans to these students could reduce enrollment and hinder patient access, particularly in rural and underserved areas.
The lawsuit contended that the Department of Education exceeded its authority by adding new criteria to the professional degree definition, including a provision that excludes degrees leading to careers supervised by other professionals with higher qualifications. Judge Howell’s ruling agreed, stating that Congress had adopted the professional degree definition as it existed on a fixed date and did not grant the department discretionary power to alter it.
The injunction means the Education Department must apply the law’s original criteria for professional programs during ongoing litigation but does not block the administration from enforcing the loan limits more broadly. Department spokesperson Ellen Keast said the agency is reviewing the court’s order and will respond accordingly.
In a joint statement, the American Academy of Physician Associates and the PA Education Association hailed the injunction as a critical victory. They emphasized that opposition to the rule reflects widespread concern that supporting healthcare professionals should transcend political divides, highlighting the potential harm to the health care workforce if the rule takes effect.