Student loan borrowers are subject to higher-than-expected borrowing limits

Some graduate students will be able to take out more federal student loans than previously expected, following a recent court order.

Under President Donald Trump’s “One Big Beautiful Bill,” starting July 1, new graduate students will be subject to a $20,500 annual federal student loan cap, while so-called professional students can borrow up to $50,000.

But a federal judge in Washington last week froze the U.S. Department of Education’s definition of a “professional degree.” Judge Beryl A. Howell of the U.S. District Court for the District of Columbia said the agency narrowed the scope of the degree during the regulatory process beyond Congress’s intent.

“This latest federal ruling is game-changing,” said Kathleen Boyd, a certified financial planner and founder of Student Loan Savvy in San Diego, Calif., because it “opens the door for more graduate programs to qualify for higher annual federal loan limits.”

Here’s what students need to know about loan limit changes.

Higher education expert Mark Kantrowitz said the Education Department worked to implement the changes in the “big, beautiful bill” but narrowed the definition of a professional degree from the government’s long-standing interpretation of the word.

In the end, the Trump administration recognized only 11 degrees, including medicine, dentistry, and theology. Women are expected to be particularly hard hit by the change, as they make up more than 70% of graduates of programs excluded from higher borrowing limits, according to a report by research and advocacy group EdTrust.

On Monday, the Department of Education released an updated long list of more than 20 professional degrees that will be subject to larger loan caps, at least during court stays. These include registered nurses, physician associates, and speech therapists.

Valerie Fuller, president of the American Nurses Association, praised the ruling.

“This preliminary ruling is an important step for nursing practice students, future health care professionals, and patients who rely on NPs for access to quality care,” Fuller said.

Boyd said the Trump administration could still change the list or appeal the court’s decision.

For now, she is telling customers: “Don’t assume the program is still limited to low borrowing limits.”

“I encourage people to stay connected with their financial aid office and await further instructions from them,” Boyd said.

Importantly, the court’s decision did not eliminate the Big Beautiful Bill loan cap, said Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program in New York, a nonprofit that helps borrowers repay their loans.

Previously, many graduate students were able to borrow money to pay for their attendance.

Currently, professional students can borrow up to $50,000 per year, for a total of $200,000. Other graduate students have an annual cap of $20,500 and a total cap of $100,000.