Overview
- A federal judge set aside the Department of Education's May 1 rule on Wednesday after trade groups sued, finding the agency exceeded its authority by narrowing the regulatory definition of a "professional degree."
- The court said Congress had adopted the preexisting regulatory definition when it passed the 2025 law, so the department could not lawfully tighten that definition without violating the Administrative Procedure Act.
- Congress's One Big, Beautiful Bill Act of July 2025 remains in effect and limits graduate borrowing to $50,000 per year and $200,000 total for professional degrees and $20,500 per year and $100,000 total for other graduate degrees.
- Senate Democrats failed on a party-line vote on June 24 to repeal the administration's implementing regulations, and the judge declined to block enforcement of the statutory caps while litigation or new rulemaking proceeds.
- The decision protects loan access for many nursing and health students for now but leaves uncertainty for incoming students and schools about borrowing limits, possible appeals, revised rules, and whether institutions will change tuition or program offerings.