A federal judge vacated a U.S. Department of Education regulation that narrowed the definition of which graduate programs qualify as “professional” degrees—an outcome that could expand federal loan eligibility for education and other excluded fields. In a ruling by Judge Beryl Howell, the court found the department exceeded its authority by adding new eligibility criteria and limiting the category to 11 degrees. The “professional” label matters because federal student loan caps differ for these programs under the One Big Beautiful Bill Act signed last summer: $50,000 annually ($200,000 total) versus $20,500 annually ($100,000 total) for other graduate study. Education and advocacy groups argued that excluding education and nursing would discourage enrollment in roles that require advanced credentials, pushing students toward private lending or out of degree pathways. The ruling directs that the Department of Education’s narrowed approach was unlawful as Congress did not authorize the department to update the eligibility definition with new substantive restrictions. The decision landed amid broader scrutiny of federal education policy implementation and loan limits for graduate students. Overall, the court’s action shifts federal compliance risk back to the Department of Education and increases pressure for revised guidance that aligns with the statutory borrowing framework for educators and other graduate-professional pathways.