As AHCA/NCAL noted previously, the U.S. Department of Education (ED) published its Reimagining and Improving Student Education (RISE) Federal Student Loan Program Final Regulations, establishing separate federal student loan borrowing limits for graduate and professional students beginning July 1, 2026. Several lawsuits since then have challenged the Department's implementation of the new regulations. Recently, U.S. District Judge Beryl A. Howell granted a nationwide preliminary injunction blocking the Department from enforcing its revised definition of "professional degree" while the litigation proceeds. The court found that the Department exceeded its authority under the Administrative Procedure Act, by adopting a definition that conflicts with the one established by Congress.
In her decision, Judge Howell emphasized that Congress incorporated a longstanding regulatory definition of "professional degree" into federal law and that the Department lacked authority to narrow that definition through regulation. The opinion explains that a professional degree has historically been evaluated using a three-part test:
- Signifies completion of the academic requirements necessary to begin practice in a recognized profession;
- Represents a level of professional skill or training beyond that normally required for a bachelor's degree; and
- Generally requires licensure or certification to practice in the profession.
The regulation also provides examples of professional degree programs but makes clear that those examples are illustrative rather than exhaustive. As a result, other graduate programs that satisfy the three-part test may qualify as professional degree programs even if they are not specifically listed.
However, the preliminary injunction does not prevent implementation of the statutory graduate and professional student loan limits enacted by Congress. Rather, it temporarily prohibits the ED from enforcing its narrower definition of which academic programs qualify as "professional" for purposes of those higher borrowing limits while the case proceeds. Additional guidance from the ED is expected regarding implementation before the July 1 effective date.
The ruling is particularly significant for health care professions that were excluded under the ED's revised definition. Graduate programs preparing advanced practice registered nurses, physical therapists, occupational therapists, and other licensed health care professionals may continue to be evaluated under the longstanding regulatory definition while the litigation is pending. This means students enrolled in qualifying programs may remain eligible for the higher federal student loan limits available to professional degree students, pending further court action or ED guidance.
The decision is especially important for the long term care profession because advanced practice registered nurses, physical therapists, and occupational therapists are critical members of the workforce. Preserving access to higher federal student loan borrowing limits may help reduce financial barriers for students entering these professions and support the recruitment and retention of clinicians who provide care in long term care communities.
AHCA/NCAL will continue to monitor this and keep members informed of significant developments.