Overview
- A federal judge in Washington stayed the Education Department’s May rule on June 25, finding the agency likely overstepped by narrowing the statutory/regulatory definition of “professional” degree to 11 fields.
- Judge Beryl Howell said the department added at least five new eligibility criteria that Congress did not authorize and ordered the agency to use the earlier regulatory definition while lawsuits proceed.
- The underlying loan caps Congress set in the One Big Beautiful Bill Act remain law, with professional students eligible for higher limits of $50,000 per year and $200,000 total and other graduate students capped at $20,500 per year and $100,000 total.
- The Education Department said it is reviewing the order and may appeal or pursue revised rulemaking, leaving schools, students and financial aid offices facing near-term uncertainty before the July 1 implementation date.
- Advocates and plaintiff groups warn the narrowed definition would have pushed nursing, education, public health and allied professions toward costly private loans and worsened workforce shortages while proponents say the caps aim to pressure institutions to lower costs.