Federal courts issued a meaningful check on Trump-era graduate student loan caps by blocking or voiding portions of how the Department of Education defined “professional” degrees. In one ruling, Judge Beryl Howell temporarily blocked the department’s new restrictions, finding the definition likely inconsistent with what Congress authorized in the One Big Beautiful Bill Act. Separately, another ruling held the department violated the law by narrowing the professional-degree definition to 11 mostly doctoral-level degrees, excluding fields such as education and nursing that have pathways to advanced practice or licensure. The court concluded the department lacked authority to add eligibility criteria beyond the statutory reference to an earlier regulatory framework. For colleges and professional schools, these developments can change student borrowing eligibility and admissions planning for graduate programs—while increasing pressure on compliance teams to track what definitions govern aid for each degree category during ongoing litigation.
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