Federal changes to student borrowing are arriving July 1, but implementation is colliding with operational disruption at Federal Student Aid. Reporting and investigations highlight that DOGE-related cuts gutted key staff functions within FSA, leaving parts of the $1.7 trillion student-loan portfolio management and risk-assessment apparatus without personnel. A separate federal court action is also reshaping how “professional” graduate degrees are classified for higher borrowing caps. Judge Beryl Howell temporarily blocks a narrow definition used to apply loan limits, with critics arguing the rulemaking process and eligibility criteria conflict with Congress’s intent.