Key facts
- A federal judge blocked part of a Trump administration rule that limited federal student loan amounts for graduate students.
- Nursing, physical therapy, and other fields will now be eligible for higher loan limits.
- Theology studies programs have been removed from the 'professional degree' designation, leading to lower loan limits for those students.
- Professional degree programs face federal loan caps of $200,000, while other graduate programs are capped at $100,000.
- The U.S. Education Department has issued a revised rule to comply with the judge's order while continuing to fight the original rule in court.
A federal judge's ruling has temporarily reinstated higher federal student loan limits for graduate students in fields like nursing and physical therapy, overturning a Trump administration rule that had classified these as non-professional programs. The U.S. Education Department issued a revised rule to comply with the order, stating it disagrees with the court's analysis and intends to fight the original rule in court.
The original rule had defined certain fields as "professional programs" with higher loan caps of $200,000, while excluding others like nursing, which were capped at $100,000. This change was part of an effort to control student debt and tuition costs. However, groups representing nurse practitioners, therapists, and other professionals sued, arguing the rule would force students to abandon their studies or seek riskier private loans.
In applying the judge's order, the department has now removed some programs, such as theology studies, from the professional designation, subjecting their students to lower loan limits. The master of divinity degree, however, remains on the professional list. The department's revised rule, effective Wednesday, expands the professional list to 29 programs, including various nursing degrees, and removes about 25 programs, including theology and applied psychology.
U.S. District Judge Beryl Howell had called the department's interpretation of "professional degree programs" misguided and a departure from a longstanding definition. The department's criteria for professional degrees included taking at least six years to complete, requiring licenses, and not leading to employment supervised by professionals with more education. A separate lawsuit by Democratic-led states challenging the loan caps is still pending.