DISTRICT OF COLUMBIA — Judge Beryl A. Howell of the U.S. District Court for the District of Columbia issued a ruling on June 25, 2026, overturning an Education Department rule defining "professional" degrees. The decision invalidated regulations that narrowed graduate students' access to higher federal student loan borrowing limits.

The ruling stated the department violated Congress's instructions by adding criteria strictly limiting which degrees qualify for higher borrowing caps. Howell wrote, "Congress could not have been clearer as to the meaning of 'professional degree.'" The judge noted Congress adopted a preexisting definition as it stood on a specific date, removing discretionary authority to limit the definition for federal loan caps.

Howell stayed the rule pending final resolution of the litigation. The Education Department responded June 26 via email, stating it is reviewing the order and will take appropriate action. The department added that the order allows it to enforce the statutory professional degree definition and loan caps.

The statutory definition of a professional degree specifies a degree signifying both completion of academic requirements for beginning practice in a profession and a level of skill beyond that normally required for a bachelor's degree. The definition also states professional licensure is generally required. The One Big Beautiful Bill Act limits graduate students to borrowing $20,500 per year, up to $100,000 in total, while professional students can borrow $50,000 per year, up to $200,000 in total.

The department's rule had designated only 11 degree programs eligible for higher limits: pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, theology, and clinical psychology. The One Big Beautiful Bill Act lists examples of professional degrees but indicates the list is not exhaustive. Howell wrote, "Congress did not direct the Department to evaluate and update the regulatory definition already in [law] with any new eligibility criteria, let alone five material changes to the statutorily adopted regulatory definition."

The PA Education Association filed one of the cases. The association stated in a news release the ruling provides temporary but immediate relief as the case proceeds on the merits. Loan limits established by the One Big Beautiful Bill Act are scheduled to take effect July 1, 2026.