Judge Tosses ED’s ‘Professional’ Degree Definition, Likely Aiding Student Borrowers

A federal judge vacated the Education Department's definition of "professional" degree on June 25, 2026, ruling that the department exceeded its authority by imposing new criteria that limited which degrees qualified for higher federal student loan borrowing caps. The judge found that the department violated Congress's instructions by adding these restrictions. This decision is expected to benefit student borrowers by potentially allowing more graduate degrees to qualify for increased federal loan limits. The previous definition, established in 2020, had been criticized for being overly restrictive and not aligning with congressional intent. The ruling stems from a lawsuit filed by a group of graduate students and institutions challenging the department's interpretation of the Higher Education Act. The Education Department had argued that its definition was necessary to prevent abuse of the federal loan program, but the court disagreed, stating that the department did not have the statutory authority to implement such a narrow interpretation without further congressional action. This ruling could lead to a significant increase in the amount of federal student loan funding available to students pursuing a wider range of graduate and professional programs.