New Trump Rule on Student Loan Caps Blocked in Court
Summary
A federal judge temporarily blocked part of a new rule from President Donald Trump’s administration that would limit how much graduate students can borrow for federal student loans. The rule aimed to restrict higher borrowing limits to fewer degree programs, but critics say this could hurt students in important fields like nursing and education.Key Facts
- The judge’s order stops a new rule from the Department of Education that was set to start on July 1.
- The rule would have limited most graduate students to borrowing $20,500 per year and $100,000 total in federal loans.
- Some “professional” programs, like law and medicine, could borrow up to $50,000 annually with a $200,000 lifetime cap.
- The rule narrowed which degree programs qualify for the higher loan limits, excluding some fields like nursing and education.
- Healthcare and education groups argued the rule unfairly limits access to training for essential jobs.
- The judge’s ruling pauses the stricter definition of “professional” degrees but does not remove the overall loan limits.
- The Education Department is reviewing the decision and said most nursing students borrow less than the new caps.
- The department hopes loan limits will encourage programs to lower costs while ensuring access remains.
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