U.S. District Judge Beryl Howell issued a temporary injunction against the Department of Education's new borrowing caps for graduate students, which were set to take effect on July 1.
The rule, part of the One Big Beautiful Bill Act, would have imposed a $20,500 annual borrowing limit for most graduate students and a $50,000 limit for those in designated professional fields, such as medicine and dentistry.
The ruling came in response to a lawsuit from groups including the American Association of Nurse Practitioners, who argued that the definition of a 'professional degree' was overly restrictive and excluded important fields like nursing and education.
While the judge did not block the overall loan caps, she did stay the definition of professional degrees, allowing students in affected fields to continue borrowing without limits for the time being. This decision is significant as it impacts the financial accessibility of graduate education for many students, potentially influencing enrollment in critical healthcare and educational programs