Judge blocks Trump's rule limiting federal student loans for certain grad school borrowers
A federal judge temporarily blocked Trump's limits on how much certain graduate students can borrow. That policy was set to go into effect July 1.
TL;DR
- A federal judge temporarily blocked new Trump administration rules limiting federal student loan borrowing for graduate students.
- The rule would have imposed annual borrowing caps of $20,500 for most graduate students and $50,000 for professional students.
- Previously, graduate students could borrow up to the cost of their program.
- The judge's order specifically stayed the Education Department's definition of a "professional degree."
- The plaintiffs argued the definition of professional degrees was arbitrary and capricious, disproportionately affecting fields like nursing and education.
- The judge did not block the enforcement of the loan caps themselves or remedy the end of uncapped borrowing.