The U.S. Department of Education finalized a rule tightening federal graduate student loan limits, including new borrowing caps that hinge on whether a graduate program is classified as “professional.” The rule excludes many education and nursing-related graduate programs from higher loan limits, setting $50,000 annually and $200,000 in total for “professional” programs, versus $20,500 annually and $100,000 in total for non-professional graduate degrees. The final regulations also implement the sunsetting of Grad PLUS loans and shift repayment options, with most provisions taking effect July 1. Advocates and higher-education groups argued the narrow definition will reduce enrollment in key fields and intensify labor shortages, particularly in educator preparation and special education pipelines. Education-sector organizations including the American Association of Colleges for Teacher Education warned the change could reduce participation by half-time students and increase dropout risk when students exceed new caps. The department said it was bound to a statutory definition carried into existing regulatory parameters. In parallel, litigation is expected as institutions and professional organizations evaluate whether the new loan-category structure is consistent with program needs, licensure timelines, and student affordability constraints.