Judge Blocks Education Department Student Loan Borrowing Caps

U.S. District Judge Michael Simon blocked a Department of Education plan to restrict federal student-loan borrowing caps for certain advanced degrees, ruling that the agency exceeded its authority. The ruling, issued as a preliminary injunction, ensures that naturopathic medicine qualifies for a higher borrowing limit during a period when students and schools are making imminent enrollment decisions for the coming academic year.

The Department of Education intended to implement a rule on July 1 that would limit a $200,000 lifetime borrowing cap to only 11 professional programs, including medicine and dentistry. Other advanced degrees would have been capped at $100,000. This decision marks the third federal court ruling against the plan.

While the Department of Education previously expanded its list of qualifying programs to 30 following a separate ruling in June, it continues to maintain that its narrowed definition of professional degrees is lawful.