Graduate-level programs such as nursing are, for now, considered “professional” degrees by the U.S. Department of Education after a court order in late June halted the agency’s new “professional” definition while a legal challenge unfolds. (Photo by Getty Images)
WASHINGTON — As a result of a judicial decision, students enrolled in certain advanced degree programs can now benefit from increased loan limits. However, this temporary measure introduces a layer of unpredictability amid an ongoing legal dispute.
The U.S. Department of Education has, for the time being, categorized programs like nursing, occupational therapy, and speech-language pathology as “professional” degrees. This change follows a court order from late June that paused the department’s revised definition of “professional” degrees, which is currently under legal examination.
Previously, the department’s new definition restricted the scope of advanced degrees that qualify for higher loan limits to just 11 fields, excluding several programs such as nursing.
In compliance with the interim ruling from U.S. District Judge Beryl Howell, the department has temporarily broadened the classification of “professional” degrees to encompass 29 fields, according to the guidance issued to educational institutions.
Challenges from Past Administration
Despite the court’s intervention, the Education Department maintains that its definition is “lawful” and plans to continue defending its regulations.
The department has indicated in its guidance that the temporary classifications of “professional” degrees are solely for implementing the court’s order and may be revised as the litigation progresses.
A spokesperson from the department, speaking off the record, did not confirm if an appeal against the ruling would be pursued.
The department also advised institutions, while the case is ongoing, to consider imposing loan limits based on the graduate-level caps for programs temporarily classified as “professional” to minimize disruptions to student borrowers that might occur due to potential reclassification from the legal proceedings.
The expanded list of programs recognized as “professional” now includes veterinary medicine, law, divinity/ministry, rabbinical studies, clinical psychology, and several others, alongside registered nursing, nurse anesthetist, and nursing practice.
Conversely, some programs that might have been previously considered “professional” no longer hold that classification during the court order, including theology, pharmaceutical sciences, and environmental psychology.
Uncertainty for Educational Institutions
Denise Morelli, associated with Sligo Law Group and a former Education Department attorney, pointed out that the department’s late June guidance lacks clarity regarding potential consequences for schools and students if the department succeeds in court and retains its “professional” degree definition.
“I do think that has an impact on schools and students because schools are, kind of, not sure what to do because now … these people in these programs are allowed to have the higher loans, according to the department, but the department’s not saying they can keep them,” Morelli explained.
She continued, “You could be partway through the program, the department prevails, now the student has to get their loan amount cut, and it could also affect their annual limits, so it puts both students and schools in a very precarious position right now.”
Student Loan Policy Revisions
The redefined degree classifications are part of the extensive changes to the federal student loan system implemented during President Donald Trump’s administration, following the GOP’s 2025 legislative reforms. Most changes took effect on July 1.
The overhaul included the removal of a program that permitted unlimited borrowing for graduate and professional students, introducing new caps that vary based on whether a degree is classified as “professional.”
Graduate student loans now have a $20,500 annual cap and a $100,000 lifetime limit, whereas professional student loans face a $50,000 yearly limit and a $200,000 aggregate cap.
Emergence of Legal Challenges
The new “professional” degree definition from the department has led to multiple legal challenges against the administration, including the lawsuit that prompted Judge Howell’s order in June.
This case involves two combined challenges from eight groups representing individuals in fields excluded from the department’s revised “professional” definition.
The American Association of Nurse Practitioners, the National Association of Pediatric Nurse Practitioners, the American Association of Colleges of Nursing, the Association of Schools and Programs of Public Health, the National Education Association, and the American Association for Marriage and Family Therapy filed one of the lawsuits in May.
In June, the PA Education Association and the American Academy of Physician Associates filed another lawsuit.
