Judge Beryl A. Howell of the U.S. District Court for the District of Columbia granted a preliminary relief blocking implementation of the U.S. Department of Education’s new regulatory definition of “professional degree” while litigation challenging the rule proceeds. The ruling comes six days before the rule was scheduled to take effect on July 1.

Under the student loan caps, students pursuing “professional” degrees can borrow up to $50,000 a year and $200,000 total. Those in “graduate” programs can borrow up to $20,500 annually, and $100,000 total. Doctor of Physical Therapy programs were considered "graduate" in the statutory language. Howell's ruling pauses the department's definition of "professional" while the rest of the case is decided, and will still allow higher borrowing caps to take effect on July 1, using preexisting definitions that would include advanced healthcare programs in the caps.

“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,” Howell wrote. “In fact, Congress did the opposite. By adopting the preexisting definition as it was in effect on a specific date, Congress removed any discretionary authority the Department may have had to narrow the definition for the purpose of determining federal loan caps.” 

She also said there was a contradiction between the department’s belief that Congress didn’t instruct it to consider “adverse effects on staffing in healthcare and education, diversity in the workforce, rural and underserved communities, and working families,” and its belief that it could make these changes to Congress’s definition. 

For months, ACAPT—alongside several partner organizations—has been actively engaging on Capitol Hill to address the far-reaching impacts federal policy proposals could have on physical therapy programs, the healthcare workforce, and the students preparing to enter the profession. We are grateful for the support of our coalition partners in the Advanced Professionals Workforce Alliance (APWA), whose leadership and collaboration have helped drive these efforts forward.

The ruling doesn't stop the loan caps, just the updated definition of a profession degree.

The Education Department said in a written statement that it is “reviewing the order and will take appropriate action.” It previously defended the caps on student loans, saying they were already incentivizing colleges and universities to lower tuition.