Judge blocks limits on graduate student loans
FILE-Demonstrators display signs of protest outside the U.S. Supreme Court, on June 30, 2023. (Photo by Tom Brenner for The Washington Post via Getty Images)
A federal judge has blocked a portion of a Trump administration plan that would have limited access to loans for students pursuing graduate degrees in nursing, physical therapy, public health, and some other fields.
U.S. District Judge Beryl Howell took issue with the Department of Education making updates that added tougher requirements to the agency’s definition of a "professional degree."
The Associated Press reported that the ruling doesn't stop the student loan caps, just the updated definition of a professional degree.
Eight groups sued, representing nurse practitioners, therapists, public health workers, speech language pathologists, physician assistants, and others. These groups alleged that students would be forced to forgo their education or accept private loans.
RELATED: 25 states file lawsuit over student loan caps for nursing and healthcare degrees
According to the AP, the groups took issue with caps placed on federal student loans that were passed as part of the One Big Beautiful Bill Act, which are scheduled to take effect in July.
Previously, graduate students were able to borrow loans up to the cost of their degree, but the new rules set limits. Programs in the category of "graduate" programs face a loan cap of $100,000, while professional degrees are capped at $200,000.
Additionally, the Department of Education defined various fields as professional programs: pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, and theology.
States argue federal loan limit may impact health worker shortage
Dig deeper:
A lawsuit filed by multiple states is also contesting the caps on student loans is still ongoing.
The states in the lawsuit, which include Arizona, California, Maryland, Nevada, and Colorado, are challenging a Trump administration rule that caps access to federal student loans for borrowers earning a graduate degree in healthcare-related jobs.
States are concerned that the rules may compel students to rely on expensive private loans, postpone finishing their education, and weaken workforce shortages, making it difficult for patients to access health care.
RELATED: Trump administration ramps up dismantling Education Department by shifting duties
According to the Washington Post, the Department of Education stated that 95% of nursing students borrow below the annual limit and would not be impacted by the new caps.
While appearing at a House Education Committee hearing in April, Education Secretary Linda McMahon alluded to this statistic when lawmakers expressed concerns that the graduate loan limits may worsen the health care worker shortage.
McMahon raised two points in the hearing that the cost of most advanced nursing degrees might still be in the range of the new caps, which wouldn’t affect undergraduate nursing programs, and that the caps are meant to compel colleges to lower their tuition costs, NPR reported.
The Source: Information for this story was provided by previous FOX Local reporting and The Associated Press. This story was reported from Washington, D.C.