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By Khaleda Rahman
National Correspondent
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A federal judge has temporarily blocked the Trump administration from implementing lower federal student loan limits for students pursuing graduate degrees in nursing and some other fields.
On Wednesday, U.S. District Judge Beryl Howell paused the Department of Education's new definition of a "professional degree," but her ruling does not stop loan caps from going into effect.
At issue are caps on federal student loans passed as part of the One Big Beautiful Bill Act that are set to take effect on July 1.
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While graduate students could previously borrow loans up to the cost of their degree, the new rules set limits. Programs that were designated as graduate programs face a loan cap of $100,000, while professional degrees are capped at $200,000.
Nursing groups that sued over the rules welcomed the judge's ruling.
"This is an important step for nurse practitioner students, as well as the future health care workforce and the patients who depend on them for access to care," Valerie Fuller, the president of the American Association of Nurse Practitioners, one of the groups that sued, said in a statement. "We are pleased the court recognized the serious legal concerns raised by this rule," she continued.
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Deborah Trautman, the president of the American Association of Colleges of Nursing, said: "AACN is encouraged by this initial action which supports our efforts to sustain federal funding for nursing students pursuing master's and doctoral degrees and to recognize nursing as a professional degree.
"We are committed to keeping member schools, students, and colleagues updated as this legal action continues toward a final resolution."
A spokesperson for the Education Department told Newsweek it is "reviewing the order and will take appropriate action."
According to the spokesperson, "This order allows ED to enforce the statutory professional degree definition and loan caps."
The department previously defended the caps on student loans, saying they were already incentivizing colleges and universities to lower tuition.
Why Did the Judge Issue the Injunction?
Howell, an appointee of former President Barack Obama, found issue with the department making updates that added "more stringent requirements" to the definition of a professional degree. Those new requirements include that professional degree holders "must work free from another professional's supervision."
Howell said Congress adopted a specific definition into law and the Department of Education did not have the authority to narrow it.
"Congress did not direct the Department to evaluate and update the regulatory definition ... with any new eligibility criteria, let alone five material changes to the statutorily adopted regulatory definition," she wrote.
"In fact, Congress did the opposite. By adopting the preexisting definition as it was in effect on a specific date, Congress removed any discretionary authority the Department may have had to narrow the definition for the purpose of determining federal loan caps," Howell continued.
The judge also said that a loss of opportunities for prospective students would be "detrimental to the public, particularly in underserved communities that may face a shortage of health care and other critical professional services."
Why the Groups Sued
Eight groups—representing nurse practitioners, therapists, public health workers, speech language pathologists, physician assistants and more—have sued the government.
They argued that the Department of Education's new definition of a professional degree was "arbitrary and capricious" and would have "profound consequences" for the fields excluded. They alleged the new rules would mean students looking to enter those fields would be forced to accept burdensome private loans or forgo their education, meaning the country would "lose out on the benefit of their entry into these important professions."
The outcome of the legal challenge could shape both education costs and access to care for millions of Americans.
Advanced nursing roles are seen as critical to the health care system, and graduate programs can take several years and require significant financing. Any restrictions on loans could affect how many nurses enter the field.
What To Know Ahead of July 1 Deadline
Graduate students could previously take out loans up to the cost of their degree, but the new rules cap the amount depending on whether the degree is considered a graduate or a professional program.
Under the new rules set to take effect on July 1, students in professional programs would be able to borrow up to $50,000 per year and up to $200,000 in total. Other graduate students would be subject to borrowing caps of $20,500 annually or $100,000 total.
Howell's order stays the Department of Education's definition of a professional degree.
The department's final rule had identified 11 degrees that fit its definition: pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, theology and clinical psychology.
Nursing, physical therapy, dental hygiene, occupational therapy and social work were left out of the definition, as well as fields outside health care, such as architecture, education and accounting.
How Funding Caps Decided Until Final Ruling
Howell's order said the litigation could not remedy the plaintiffs' "primary frustration" over the elimination of uncapped borrowing to pursue graduate education.
But at least for now, more programs will qualify for the higher loan caps allowed for professional degrees.
What Happens Next
Howell has ordered both sides to submit a joint status report with a proposed schedule for further proceedings by July 2.
Meanwhile, a lawsuit filed by a coalition of Democratic-led states that also challenges the caps is still pending.
This article includes reporting by the Associated Press.
Contact Newsweek editors on this story: Tobias Meyjes and Shakeema Edwards.
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