A federal judge has temporarily blocked part of the Trump administration’s limits on federal graduate student loans, a decision that could have significant implications for Penn Nursing students pursuing advanced degrees.
The preliminary injunction — issued on June 24 by United States District Judge Beryl Howell — temporarily prevents the Department of Education from enforcing a narrower definition of categorically “professional” degree programs. The ruling will allow students in advanced nursing programs to continue accessing higher federal borrowing limits while litigation proceeds.
The law comes after the July 2025 “One Big Beautiful Bill Act,” which capped annual and lifetime federal borrowing based upon whether a student is pursuing a degree in a “professional” or “graduate” program. The Education Department limited the “professional” designation to 11 fields, excluding many graduate nursing programs.
The law was challenged by eight trade organizations, including the American Association of Nurse Practitioners and the PA Education Association.
School of Nursing Dean Antonia Villarruel wrote to The Daily Pennsylvanian that the decision is “very welcome news” for students enrolled in the school’s graduate nursing programs.
“We remain cautiously optimistic that the courts will view these critical degrees as meeting the professional criteria set forth by the Department of Education,” Villarruel wrote.
The preliminary injunction does not permanently block the loan limits. Instead, it pauses the Education Department’s narrower interpretation of the law while the case moves through federal court.
Villarruel explained that, prior to the ruling, the Nursing School had begun preparing for the new limits to go into effect on July 1.
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“We have communicated with enrolled students to keep them informed of options for borrowing,” she wrote. “We have also prioritized fundraising for graduate scholarships and completed major curriculum revisions to increase access to our programs.”
The loan restrictions could deter prospective students if they are ultimately authorized to take effect, Villarruel added.
“For many, the cost of graduate education will be out of reach, or achievable only with an increased debt burden,” she wrote.
Villarruel added that the Nursing School is particularly concerned with how borrowing limits could affect “talented students” who “lack the personal means” to pay for graduate education upfront.
“A high-quality, advanced nursing degree, like those offered by Penn Nursing, shouldn't be a privilege reserved only for those who can afford it upfront,” she continued.
Last month, Penn Medicine announced the launch of a student loan assistance program for new healthcare hires. The Penn Medicine Scholars Program would allow students enrolled in a range of health care programs to commit to three years of employment at the University of Pennsylvania Health System in exchange for $30,000 to $105,000 in loan repayment.
Villarruel added that the Nursing School believes that the DOE’s policy could have consequences beyond higher education by limiting the pipeline of advanced practice nurses entering the workforce. She wrote that healthcare is “becoming increasingly difficult to secure” and that “we need advanced practice nurses more than ever to fill widening care gaps in both urban and rural communities.”
“Restricting student access to education ultimately restricts patient access to essential care,” she added.
In April, the White House’s budget proposal for fiscal year 2027 called for significant funding reductions to multiple federal agencies, including several that provide funding to Penn.
The plan proposes more than a 50% cut in federal spending for the National Science Foundation and a 13% cut to the National Institutes of Health, which Penn professors called “a gut punch.”
Villarruel wrote that the Nursing School will continue to monitor the litigation and federal legislative efforts related to graduate student borrowing.
“Our primary commitment remains steadfast,” she wrote. “We will use every resource at our disposal to support our students, minimize confusion, and ensure that every enrolled nurse can successfully complete their advanced degree.”
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Senior reporter Ananya Karthik covers central administration and can be reached at karthik@thedp.com. At Penn, she studies communication and economics. Follow her on X @ananyaakarthik.
