Judge blocks new professional student loan restrictions

June 26, 2026 - 04:28

A federal judge in Washington, D.C. issued a temporary block on Wednesday, stopping the Education Department from enforcing new borrowing restrictions for graduate and professional students. The ruling comes just one week before the tighter loan caps were set to take effect.

The lawsuit, filed by several state attorneys general and higher education groups, argued that the department overstepped its authority by unilaterally changing the terms of federal student loans. Under the now-blocked policy, graduate students would have faced a hard cap on how much they could borrow through the Direct PLUS Loan program, potentially forcing many to seek private loans or drop out of school.

Judge Jia Cobb ruled that the plaintiffs had shown a strong likelihood of success on their claims that the department failed to follow proper rulemaking procedures. The temporary restraining order will remain in place while the court considers a longer-term injunction.

Critics of the policy said it would have disproportionately hurt students pursuing advanced degrees in fields like medicine, law, and business, where tuition often exceeds standard federal loan limits. Supporters of the restrictions argued they were needed to curb rising student debt and protect taxpayers.

The Education Department has not yet commented on the ruling. The case is expected to continue moving through the courts in the coming months.