A federal judge has issued a temporary injunction blocking a Trump administration rule that would have capped federal student loan borrowing for certain graduate students based on their field of study.
The ruling prevents the policy from taking effect as scheduled on July 1, maintaining the status quo for borrowers in affected programs.
The states argued that the rule exceeded federal regulatory power and would disproportionately impact students in high-cost professional programs.
The decision comes days before the implementation deadline, effectively preserving current borrowing limits for graduate students in fields such as healthcare, which were targeted by the new restrictions.
The injunction ensures that students can continue to access federal funding without the proposed caps while the legal dispute proceeds.
This development follows a lawsuit filed by a coalition of 25 states and the District of Columbia, which challenged the administration’s authority to impose field-specific borrowing limits.
The states argued that the rule exceeded federal regulatory power and would disproportionately impact students in high-cost professional programs.