A federal judge temporarily blocked part of a Trump administration rule that would have limited how much students pursuing graduate degrees can borrow, depending on their field of study.
Mere days before the policy was set to go into effect, U.S. District Judge Beryl Howell imposed a preliminary injunction on some of the U.S Department of Education’s (ED) revamped federal student loan caps.
The New Rules
Under the new regulations, which were passed as part of the One Big Beautiful Bill Act (OBBA) in July 2025, programs designated as “graduate” would be subject to a $20,500 yearly borrowing cap for a total of $100,000.
In addition, designated “professional” programs would also receive a cap of $50,000 annually for a total of $200,000.
Prior to the borrowing caps enforced by the OBBA, students were allowed to borrow as much as their program cost.
Education Department's Definition Is Troublesome
ED defines the fields of pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, and theology as professional programs.
Judge Howell found an issue with ED’s “more stringent requirements” as to what defines a professional program, which includes that professional degree holders “must work free from another professional’s supervision.”
Howell argued that Congress did not authorize ED the ability to redefine these programs.
Howell also affirmed that a loss of opportunities for prospective students would be “detrimental to the public, particularly in underserved communities that may face a shortage of healthcare and other critical professional services.”
What About The Borrowing Limits?
In response to Judge Howell’s order, press secretary for higher education at ED, Ellen Keast, assured that ED is “reviewing the order and will take appropriate action.”
Despite ruling on the policy’s definition of what a professional degree is, Judge Howell’s order does not block the Trump administration from enforcing the new loan caps.
A separate suit filed by a coalition of Democratic-led states is challenging the borrowing limits.
