Judge Blocks Student Loan Hike for Grad Students

A federal judge has temporarily blocked the Trump administration's new regulations that would have imposed lower federal student loan limits for students pursuing graduate degrees in nursing and other professional fields. U.S. District Judge Beryl Howell issued a pause on the Education Department's revised definition of a "professional degree," citing concerns that the agency overstepped its congressional authority.

The ruling specifically addresses new caps on federal student loans, which were part of the One Big Beautiful Bill Act and were scheduled to take effect in July. Previously, graduate students could borrow up to the full cost of their degree. However, the new rules introduced caps of $100,000 for "graduate" programs and $200,000 for professional degrees.

Judge Howell expressed worries that restricting access to loans would be detrimental to the public, especially in areas facing shortages of healthcare and other essential professionals. The American Association of Nurse Practitioners, a plaintiff in the lawsuit, hailed the decision as a crucial step for nursing students and the future healthcare workforce.