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June 29, 2026

Federal Judge Blocks Student Loan Caps for Nursing and Therapy Programs Amid Ongoing Legal Challenges

  • U.S. District Judge Beryl Howell blocked parts of a Trump administration rule that limited federal student loans for nursing and therapy programs, calling the department's interpretation 'misguided'.
  • The ruling allows certain professional degree students to borrow up to $200,000, but many still face caps that may not cover their educational costs, pushing them toward private loans with higher interest rates.
  • Students and advocacy groups warn that the new loan limits could deter minorities and low-income individuals from pursuing graduate programs, worsening healthcare workforce shortages.
  • Ongoing lawsuits from states and professional associations challenge the new loan definitions and caps, arguing they are arbitrary and detrimental to aspiring healthcare professionals.