Trump's Student Loan Rule Takes Another Hit as Judge Blocks Limits on Nurses

Graduate students studying nursing, physical therapy, and other health fields can now temporarily borrow more money in federal student loans. A federal judge in Washington, D.C., blocked part of a rule made by the Trump administration that had set lower limits on how much these students could borrow. The U.S. Education Department said it would follow the judge's order for now, but it also said it plans to keep fighting in court to bring the original rule back.

The judge in the case is U.S. District Judge Beryl Howell. She ruled that the Education Department had changed the meaning of the term "professional programs" in a way that went against a definition set by Congress a long time ago. She called the department's interpretation "misguided," which means she thought they got it wrong. Her ruling blocked the parts of the rule that redefined which degree programs counted as professional.

The Trump administration's rule became law last year as part of a larger tax bill. It set a borrowing cap of $200,000 for students in certain professional degree programs and $100,000 for other graduate students. Before this rule, graduate students could borrow enough money to cover the full cost of their education. Government officials said the caps were needed to lower student debt and stop colleges from raising tuition too high.

Under the new rule, some programs like theology, applied psychology, and pharmaceutical sciences were moved from the professional list to the non-professional list. That change meant students in those programs would face the lower $100,000 borrowing cap. However, some degrees, like the Master of Divinity for future pastors and the Doctor of Pharmacy, were allowed to keep their professional status and higher borrowing limit.

Several groups representing nurses, therapists, and speech-language pathologists filed a lawsuit to fight the rule. They argued that the lower loan limits would force many students to either quit school or take out riskier private loans with higher interest rates. Many advanced nursing degrees, especially in fields like nurse anesthesia, cost more than $100,000, making the lower cap a serious problem for students in those programs.

Because of the judge's ruling, the Education Department updated its list of professional programs to include 29 specific degrees. The updated list includes degrees like the master of science in nursing, doctor of nursing practice, and doctor of nursing anesthesia practice. Degrees in physical therapy, athletic training, and physician associate programs were also added back to the professional list. The department described this change as temporary while the legal battle continues.

At the same time, the department's strict reading of the judge's order means some other degree programs are now being removed from the professional list. Students in those programs will now face lower borrowing limits. Education Undersecretary Nicholas Kent said the department disagreed with the judge but would comply with her order. He added that the department would keep arguing that its original definition was both legal and correct. A separate lawsuit against the loan caps, brought by a group of Democratic-led states, is still working its way through the courts.