WASHINGTON — Students pursuing advanced degrees can now access higher loan caps, but this temporary relief is causing uncertainty amid an ongoing legal battle. Graduate programs in nursing, occupational therapy, and speech-language pathology are temporarily classified as “professional” degrees by the U.S. Department of Education. This follows a court order in June that paused the agency’s new definition while legal challenges continue.
Previously, the new definition limited eligible advanced degrees to 11 fields, excluding programs like nursing. In response to U.S. District Judge Beryl Howell’s ruling, the department temporarily expanded the “professional” degree list to 29 fields, according to guidance given to institutions.
Pushback from Trump Administration
The Education Department maintains confidence in its “lawful” definition and plans to defend the regulations. It emphasized that the temporary designations are meant solely to comply with the court’s order and may change as litigation proceeds. A department spokesperson declined to comment on potential appeals.
While the case is ongoing, the department’s guidance suggests institutions may limit loans to graduate-level caps for temporarily deemed “professional” programs, aiming to minimize disruption for student borrowers.
The expanded list includes programs like veterinary medicine, law, divinity, clinical psychology, dentistry, medicine, optometry, pharmacy, occupational therapy, and nursing practice. Conversely, programs such as theology and pharmaceutical sciences lost their “professional” status due to the court ruling.
Schools ‘Not Sure What to Do’
Denise Morelli, of Sligo Law Group, noted the department’s guidance lacks clarity on potential consequences if its definition prevails. “Schools and students are unsure because these programs now allow higher loans, but it’s unclear if they can keep them,” said Morelli, a former department attorney. “This uncertainty could result in students facing loan cuts mid-program, impacting their annual limits and placing schools in a difficult position.”
Student Loan System Overhaul
The new definition is part of President Donald Trump’s administration’s overhaul of the federal student loan system from the GOP’s 2025 legislation. Provisions effective July 1 eliminated unlimited borrowing for graduate and professional students, introducing new caps. Graduate student loans now face a $20,500 annual cap and $100,000 lifetime limit, while professional loans have a $50,000 yearly limit and $200,000 aggregate cap.
Lawsuits Crop Up
The department’s new “professional” degree definition has sparked several legal challenges, including the lawsuit leading to Howell’s order. Eight groups filed combined challenges against the definition, including the American Association of Nurse Practitioners and the American Academy of Physician Associates.
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