A federal judge has temporarily halted a key part of the Trump administration’s plan to impose stricter borrowing limits on federal student loans for certain graduate and professional programmes, ruling that the changes cannot take effect while legal challenges continue.

The decision followed lawsuits filed by organizations representing healthcare education programmes, which argued that the new policy unfairly excluded several medical professions from higher federal borrowing limits. The ruling allows existing definitions to remain in place until the court reaches a final decision.

In her ruling, U.S. District Judge Beryl Howell said:

“The plaintiffs have demonstrated that they are likely to succeed on the merits of their claims.”

The judge also found that allowing the policy to take effect immediately could cause significant harm to students and educational institutions before the legal issues are resolved.

The challenged policy was scheduled to introduce tighter lifetime borrowing caps for graduate and professional students while narrowing the definition of qualifying professional programmes. Healthcare groups argued that the restrictions would make it more difficult for students pursuing careers such as physician assistants and advanced nursing to finance their education.

Reacting to the decision, education advocates welcomed the temporary injunction, maintaining that it protects students from abrupt changes while the courts consider whether the administration acted within its legal authority.

The case is expected to continue in federal court, with the final outcome likely to determine how future federal student loan borrowing limits will apply to graduate and professional education programmes across the United States.