Federal Loan Limits Adjusted for Graduate Nursing and Therapy Students
In a significant legal development, graduate students in fields such as nursing and physical therapy have been granted the ability to borrow more from federal student loans. This follows a federal judge’s decision to halt parts of a rule from the Trump administration, which had previously imposed lower borrowing limits for these programs.
The U.S. Education Department has responded with a revised rule in line with the court’s decision. While this adjustment is temporary, agency officials are determined to maintain the original rule, categorizing degrees like law and medicine as “professional programs,” while initially excluding others like nursing.
“We will continue to make the case that the definition is both lawful and appropriate,” stated Undersecretary Nicholas Kent, reflecting the department’s intent to challenge the recent court ruling.
This temporary adjustment is a victory for the eight groups who legally contested the department’s classifications. These groups include representatives of nurse practitioners, therapists, and speech-language pathologists, among others.
However, the department’s adherence to the judge’s ruling has led to some degrees being removed from the professional program list, which reduces the loan limits for those students. Notably, theology programs, excluding the master of divinity degree, are now subject to lower loan caps.
The rule change originates from a student loan reform included in President Donald Trump’s tax legislation. Professional programs face a loan cap of $200,000, whereas other graduate programs are restricted to $100,000.
Previously, students could borrow up to the full cost of their degree, but the Trump administration introduced caps to curb escalating student debt and tuition fees.
The lawsuit challengers argued that the rule forced students to either abandon their studies or resort to riskier private loans, especially as some nursing programs exceed the $100,000 loan limit.
In a notice sent to universities, the department expressed confidence that the Trump-era rule will ultimately be upheld. The current rule will remain during the ongoing legal proceedings, but changes may occur as the case develops.
Initially, the department’s rule labeled about a dozen programs as professional, not as a reflection of their significance, but based on a definition from the 1960s. Alongside law and medicine, this list included fields like theology, pharmacy, veterinary medicine, and clinical psychology.
The temporary rule broadens this to 29 programs, including degrees such as a master of science in nursing and doctor of nursing practice. Newly recognized professional degrees include those in physical therapy, athletic training, and speech-language pathology.
Meanwhile, around 25 programs, including fields like applied psychology and pharmaceutical sciences, are now classified as non-professional, though the doctor of pharmacy degree retains its professional status.
The court’s ruling criticized the Education Department’s definition, describing it as a “misguided” deviation from Congress’s original classification. The department’s criteria for professional programs included completion times, licensing requirements, and employment supervision conditions.
Another lawsuit involving a coalition of Democratic-led states contesting the loan caps is still awaiting resolution.
