The landscape of graduate student loans has shifted significantly with a recent court ruling that expanded the list of degrees considered professional for federal loan purposes. This change comes in response to the Trump administration’s implementation of the One Big Beautiful Bill Act which introduced new borrowing caps for graduate students starting July 1, 2026.
The U.S. District Court for the District of Columbia preliminarily stayed part of the Education Department’s professional degree definition, leading to an updated list of eligible programs. This decision has implications for students in various fields, particularly those in healthcare and education.
Expanded List of Professional Degrees
The Education Department initially narrowed the definition of a professional degree to just 11 fields, including medicine, dentistry, and theology. However, a federal judge ruled that this definition was too restrictive and did not align with Congress’s intent. In response, the department published an updated list of over 20 professional degrees that will be subject to the larger loan caps.
The expanded list includes programs such as registered nursing, physician associates, and speech-language pathology. This change is particularly significant for women, who account for more than 70% of graduates in programs that were previously excluded from the higher borrowing limits.
Impact on Graduate Students
The court’s ruling did not eliminate the loan caps introduced by the One Big Beautiful Bill Act. Professional students can now borrow up to $50,000 a year, with an aggregate limit of $200,000. Other graduate students are subject to an annual cap of $20,500 and an aggregate limit of $100,000.
Financial advisors are urging students to stay informed about these changes and to consult with their financial aid offices for guidance. The Trump administration may still appeal the court’s decision, so the list of eligible programs could change in the future.
Fields Left Out
Despite the expansion, certain fields such as graduate-level teaching and education leadership degrees remain excluded from the list of professional degrees. This omission has drawn criticism from educational organizations, which argue that these programs should also qualify for the higher borrowing limits.
Cheryl Holcomb-McCoy, president and CEO of the American Association of Colleges for Teacher Education, stated that the list does not go far enough and recommended recognizing all graduate-level education degrees as professional. The Education Department, however, maintains that its original list is lawful and plans to continue defending it in court.
As the legal battle continues, graduate students are advised to keep their borrowing within the lower loan caps to avoid potential financial difficulties if the definition of professional degrees changes again.
