If your family is heading to graduate or professional school this fall, a court ruling from late June just changed how much you can borrow, at least for now. On June 29, 2026, Federal Student Aid (FSA) released an official list of programs that will be treated as professional degrees because of a federal court order. That label matters a lot, because professional students can borrow far more in federal loans than graduate students can.
This is good news for many health, law, and other students who were worried about being boxed into the lower graduate borrowing limits. Nursing, physical therapy, occupational therapy, physician assistant, pharmacy, and many psychology programs are all on the new list. But the change is temporary, tied to ongoing litigation, and it does not fix everything.
Here is what happened, who benefits, and what your family should do right now.
Why the Professional Degree Label Matters
Starting July 1, 2026, the One Big Beautiful Bill Act (OBBBA) sets new federal loan limits for students in graduate and professional programs. The Grad PLUS loan, which used to let graduate and professional students borrow up to the full cost of attendance, is going away for new borrowers. In its place are firm caps, and the caps depend on whether you are classified as a graduate student or a professional student.
Here is the difference:
- Graduate students can borrow up to $20,500 per year, with a $100,000 total (aggregate) limit.
- Professional students can borrow up to $50,000 per year, with a $200,000 total limit.
That gap is huge. A professional classification can mean access to more than twice the yearly federal loan money. For students in expensive fields like medicine, dentistry, or pharmacy, that difference can decide whether federal loans cover the bill or whether the family has to turn to private loans.
So the question "Is my program a professional degree?" is not just paperwork. It directly shapes how you will pay for school.
What the Court Ordered
The Department of Education wrote its own definition of "professional degree" in a rule called the Reimagining and Improving Student Education (RISE) Final Rule. That definition was narrow, and it left out many health programs that people normally think of as professional training.
Several groups sued. On June 24, 2026, the U.S. District Court for the District of Columbia issued a preliminary stay, which temporarily blocks part of the Department's definition while the case moves forward. In response, on June 29 the Department published an interim list of programs it will treat as professional degrees for as long as the court's stay is in place.
The Department was clear that it still believes its original definition is lawful and plans to keep defending it. So this list is a temporary fix to follow the court's order, not a permanent decision. It "may change as litigation in the case proceeds."
If you want the background on how this fight started, our earlier report on the 25 states that sued over the new graduate loan limits explains the stakes for nursing, PA, and PT families.
Which Programs Are Now Treated as Professional Degrees
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College Ave's student loan products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or BTG Pactual Bank, N.A., member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1) All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2) As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3) This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (APR): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 9/8/2026. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
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Undergraduate School Loan/Smart Option Student Loan: Examples of typical transactions for a $10,000 Smart Option Student Loan with the most common fixed rate, Fixed Repayment Option, two disbursements, a 4-year in-school period, and a 6-month grace: For a borrower with the shortest loan term, it works out to 16.16% fixed APR, 51 payments of $25.00, 119 payments of $296.32 and one payment of $41.82, for a total loan cost of $36,578.90. For a borrower with the longest loan term, it works out to 16.38% fixed APR, 51 payments of $25.00, 177 payments of $265.54 and one payment of $173.00, for a total loan cost of $48,448.58. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not. Information advertised valid as of 08/25/2026. Rates: Advertised APRs for undergraduate students assume a $10,000 loan with a 4-year in-school period, a 6-month grace, and the longest loan term offered. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan's Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Cosigner Release: Only the borrower may apply for cosigner release. To do so, they must first meet the age of majority in their state and provide proof of graduation (or completion of certification program), income, and U.S. citizenship or permanent residency (if their status has changed since they applied). In the last 12 months, the borrower can't have been past due on any loans serviced by Sallie Mae for 30 or more days or enrolled in any hardship forbearances or modified repayment programs. In addition, the borrower must have paid ahead or made 12 on-time principal and interest payments on each loan requested for release. The loan can't be past due when the cosigner release application is processed. The borrower must also demonstrate the ability to assume full responsibility of the loan(s) individually and pass a credit review when the cosigner release application is processed that demonstrates a satisfactory credit history including but not limited to no: bankruptcy, foreclosure, student loan(s) in default or 90-day delinquencies in the last 24 months. Requirements are subject to change.
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Earnest Private Student Loans are subject to credit approval. ¹Earnest does not charge fees for origination, late payments, returned check, or prepayments. Florida Stamp Tax: For Florida residents, Florida documentary stamp tax is required by law, calculated as $0.35 for each $100 (or portion thereof) of the principal loan amount, the amount of which is provided in the Final Disclosure. Lender will add the stamp tax to the principal loan amount. The full amount will be paid directly to the Florida Department of Revenue. Certificate of Registration No. 78-8016373916-1. ²Repayment terms and repayment options available vary based on loan type. ³You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment from a checking or savings account. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. It is important to note that the 0.25% Auto Pay discount is not available when loan payments are deferred during the interim period as a result of selecting the deferred repayment option. ⁴To be eligible for the Loyalty Discount, applicants must have previously obtained an Earnest Private Student Loan and apply using the same email address associated with that loan. Only one Loyalty Discount may be applied per eligible Earnest Private Student Loan. Not all applicants may qualify. This offer cannot be combined with Earnest’s Rate Match program. Earnest may modify or discontinue this offer at any time and without notice, however, once a Loyalty Discount is earned, it will not be taken away. ⁵Residents of Hawaii must request a loan of at least $1,501. ⁶Available interest rates are subject to change. Interest rates as of 03/19/2026. Earnest’s Loan Cost Examples: 1.) These examples provide estimates based on principal and interest payments beginning immediately upon loan disbursement. Variable annual percentage rate ("APR"): A $10,000 loan with a 15-year term (180 monthly payments of $152.84) and a 16.85% interest rate without Auto Pay (16.85% APR) would result in a total estimated payment amount of $27,511.20. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $150.30) and a 16.49% interest rate without Auto Pay (16.49% APR) would result in a total estimated payment amount of $27,054.10. 2.) These examples provide estimates based on interest-only payments while in school. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $152.84) and a 16.85% interest rate without Auto Pay (16.85% APR) would result in a total estimated payment amount of $35,515.14. For a variable loan, after your starting rate is set, your rate will then vary with the market. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $140.42 for 57 months. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $150.30) and a 16.49% interest rate without Auto Pay (16.49% APR) would result in a total estimated payment amount of $34,886.94. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $137.42 for 57 months. 3.) These examples provide estimates based on fixed $25 payments while in school. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $253.39) and a 16.85% interest rate without Auto Pay (14.92% APR) would result in a total estimated payment amount of $47,035.20. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $246.61) and a 16.49% interest rate without Auto Pay (14.65% APR) would result in a total estimated payment amount of $45,814.80. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $25.00. 4.) These examples provide estimates based on deferred payments. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $275.17) and a 16.85% interest rate without Auto Pay (14.67% APR) would result in a total estimated payment amount of $49,530.60. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $268.03) and a 16.49% interest rate without Auto Pay (14.39% APR) would result in a total estimated payment amount of $48,245.40. Your actual repayment terms may vary. Other repayment options are available. It is important to note that the 0.25% Auto Pay discount is not available when the deferred repayment option has been selected and the loan is in the interim period. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $0. ⁷Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school. ⁸To qualify for automatic cosigner release, the outstanding principal balance of your loan must be paid down to 50% or less of the original principal balance. The primary borrower must have made 36 months of required payments after the end of the Interim Period. The primary borrower must meet our eligibility and minimum credit requirements. Additional terms and conditions may apply. To request cosigner release, the primary borrower must have made 12 consecutive, monthly on-time principal and interest payments (or an amount equal thereto) immediately preceding the cosigner release application. The primary borrower must satisfy certain eligibility and credit criteria at the time of application. Additional terms and conditions may apply. ⁹Includes 0.50% combined Auto Pay and Loyalty discounts. Actual rate and available repayment terms will vary based on your financial profile. Fixed annual percentage rates (APR) range from 2.79% to 16.74% (2.29% - 16.24% with Auto Pay and Loyalty discounts). Variable annual percentage rates (APR) range from 5.24% to 17.1% (4.74% - 16.6% with Auto Pay and Loyalty discounts). Earnest variable interest rate student loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent plus a margin and will change on the 1st of each month. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Our lowest rates are only available for our most credit qualified existing cosigned loan borrowers who receive the 0.25% Loyalty discount and requires selection of our shortest term offered, full principal and interest payment while in school, and enrollment in our 0.25% Auto Pay discount. Enrolling in Auto Pay is not required as a condition for approval. Interest rates are subject to change. Earnest Private Student Loans are made by FinWise Bank, Member FDIC. FinWise Bank, 756 East Winchester, Suite 100, Murray, UT 84107. Earnest student loans are serviced by Earnest Operations LLC, 300 Frank H. Ogawa Plaza, Suite 340, Oakland, CA 94612. NMLS #1204917, with support from Higher Education Loan Authority of the State of Missouri (MOHELA) (NMLS# 1442770). FinWise Bank and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America. © 2026 Earnest LLC. All rights reserved.
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For the duration of the court's stay, the following programs will be treated as awarding professional degrees, which means they qualify for the higher loan limits. To count, the program must award the specific degree noted.
- Veterinary Medicine (D.V.M.)
- Law (LL.B.; J.D.)
- Divinity/Ministry (M.Div.)
- Rabbinical Studies (M.H.L.)
- Clinical, Counseling, School, Child, Health, Family, and Forensic Psychology (Psy.D.)
- Chiropractic (D.C.; D.C.M.)
- Audiology (AuD)
- Speech-Language Pathology (SLP)
- Dentistry (D.D.S.; D.M.D.)
- Anesthesiologist Assistant (CAA)
- Physician Associate/Assistant (MSPA; PA)
- Athletic Training (MSAT; MAT)
- Medicine (M.D.)
- Osteopathic Medicine (D.O.)
- Podiatry (D.P.M.; D.P.; Pod.D.)
- Optometry (O.D.)
- Pharmacy (Pharm.D.)
- Occupational Therapy (OT; MSOT; OTD)
- Physical Therapy (PT; DPT)
- Registered Nursing (MSN)
- Nurse Anesthetist (DNAP)
- Nursing Practice (DNP)
If your program is on this list and awards the degree shown, you may be eligible for the professional loan limits of $50,000 per year and $200,000 total, rather than the lower graduate caps.
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Which Programs Are Not on the List
The court's order also spelled out programs that will not be treated as professional degrees during the stay. Students in these programs stay under the graduate limits of $20,500 per year and $100,000 total. They include:
- Theology and Theological Studies, Pre-Theology, and related ministerial studies (other than the M.Div. and M.H.L. degrees listed above)
- Non-clinical psychology fields such as Community, Industrial-Organizational, Educational, Environmental, and Applied Psychology, plus Applied Behavior Analysis and Sport Psychology
- Pharmacy science and administration programs, such as Pharmaceutical Sciences, Pharmacy Administration, and Pharmaceutics, that do not award the Pharm.D.
- "Medicine, Other" programs that fall outside the listed medical degrees
The pattern is important: it is often the specific degree, not just the subject, that decides the classification. A Pharm.D. program is treated as professional, but a research-focused pharmaceutical sciences master's is not. If you are unsure where your program lands, ask your school's financial aid office to confirm your program's classification code (called a CIP code) and grade level.
What This Means for Your Family's Wallet
For students in the listed fields, this ruling can meaningfully raise how much federal loan money is available. That is real relief, because federal loans come with fixed rates, income-based repayment options, and access to forgiveness programs that private loans usually do not offer.
But there are a few cautions worth keeping in mind.
First, the change is temporary. The classification could shift again as the lawsuit continues. FSA even suggested that schools may choose to cap loans at the lower graduate level for now, to avoid disruption if the classification changes mid-year. So your school might not immediately offer the full professional amount.
Second, more borrowing room is not the same as a reason to borrow more. Just because you can take $50,000 a year does not mean you should. Professional school debt can follow borrowers for decades. Borrow what you truly need, and no more.
Third, the rest of the OBBBA changes still take effect July 1, 2026. Grad PLUS is ending for new borrowers, and the new Repayment Assistance Plan and tiered Standard Plan become the repayment options. You can read our plain-language guide to what RAP is and how to enroll to understand your repayment choices.
What to Do Right Now
If you or your student is starting a graduate or professional program this year, here are practical next steps.
- Confirm your program's classification. Ask the financial aid office whether your program is being treated as a professional degree under the June 29 FSA guidance, and which loan limit applies to you.
- File the FAFSA if you have not already. The FAFSA is the gateway to federal loans and any grant aid you may qualify for.
- Borrow federal first. Federal loans offer protections that private loans do not. Understand the full federal picture with our guide to borrowing for graduate school.
- Only then consider private loans for any gap. If federal limits still leave a shortfall, compare options carefully. See our overviews of federal vs. private student loans and the best private student loans for graduate students.
- Watch for updates. Because this is tied to active litigation, the list could change. The Department is posting updates on its StudentAid.gov "big updates" page, and we will keep tracking it here.
The Bottom Line
For thousands of students in nursing, physical therapy, pharmacy, psychology, law, and other fields, a court order just restored access to the higher professional loan limits, at least for now. That can ease the pressure of paying for an expensive degree. But the relief is temporary, the details depend on your exact program and degree, and smart borrowing still means taking only what you need.
The best move is to get clear on your own numbers before you sign anything. When you create your free CollegeLens plan, we help you see your full cost, your funding gap, and how different borrowing choices play out, so a confusing headline turns into a clear, calm plan.
Paying for professional school is a big commitment, and the rules keep shifting. You do not have to keep up with every court filing to make a good decision. You just need to understand your own situation, and we are here to help you do exactly that.
Sravani at CollegeLens
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