A federal judge in Oregon has blocked the U.S. Department of Education from excluding naturopathic medicine programs from the higher federal student loan limit, finding that the department’s proposed definition of a professional degree exceeded its authority. The preliminary injunction comes as students weigh whether they can afford tuition for the next academic year. It is the third time a federal judge has halted the policy’s implementation.
Loan limits hinge on professional-degree status
The department had planned to put new rules in place on July 1, limiting eligibility for the higher borrowing cap to 11 programs, including dentistry and medicine but excluding nursing and social work. Under the original plan, students in listed programs could borrow up to $200,000 in federal loans over their lifetime. The cap for other higher-education programs would be $100,000.
Naturopathic medicine was not on the list. Colleges and students involved in the lawsuit argued that the exclusion could push students toward private loans, which often carry higher interest rates and are not eligible for federal loan-forgiveness programs. An industry association representing naturopathic medical schools also said that students unable to secure enough financing might decide not to enroll, potentially reducing schools’ revenue.
Judge cites imminent decisions about enrollment
In his ruling, U.S. District Judge Michael Simon said students were deciding whether they could afford the coming academic year, making the potential effects of the limits on students and schools urgent. He issued a preliminary injunction against the department’s proposed definition of “professional” and directed it to include naturopathic medicine programs in the higher borrowing-cap category.
The ruling addresses naturopathic medicine programs’ eligibility; it does not permanently overturn the broader loan-cap plan. In a notice, the Federal Student Aid office advised students to contact their schools to understand how the court’s decision could affect their individual circumstances.
Earlier ruling prompted a wider list
A separate court ruling had already prevented the department from implementing its narrower definition of professional degrees. In late June, the department responded by publishing a revised list that expanded the programs eligible for the higher borrowing caps to 30, while saying it would continue to defend the legality of its definition.
Litigation over which programs should qualify for higher federal loan limits is ongoing. Further court decisions will shape students’ borrowing eligibility and schools’ enrollment plans.