Key facts
- A federal judge blocked the Trump administration's new rule on federal student loan limits for graduate students.
- The rule would have lowered loan limits for students pursuing degrees in nursing and other healthcare-related fields.
- The lawsuit was filed by eight trade organizations, including the American Association of Nurse Practitioners.
- U.S. District Judge Beryl Howell ruled the Education Department overstepped its authority by changing a regulatory definition of 'professional degree'.
- The judge stated Congress had expressly adopted a preexisting definition of these degrees when enacting a law in July 2025.
A federal judge has blocked the Trump administration's new rule that would have imposed lower federal student loan limits for students pursuing graduate degrees in nursing and other healthcare-related fields. U.S. District Judge Beryl Howell ruled late Wednesday that the Education Department exceeded its authority by altering a regulatory definition of 'professional degree' that Congress had expressly adopted when passing a tax and spending bill in July 2025. The lawsuit was filed by eight trade organizations, including the American Association of Nurse Practitioners and the PA Education Association, who sought to prevent the rule from taking effect on July 1. The department had defended the caps as necessary to encourage universities to control costs. The ruling does not stop the loan caps, just the updated definition of a professional degree. The Education Department said in a written statement that it is "reviewing the order and will take appropriate action."