Court Blocks Trump Student-Loan Caps for Healthcare Programs

A federal judge blocked key borrowing caps in President Donald Trump's student-loan repayment overhaul, stopping the Education Department from limiting how much graduate students in advanced healthcare programs can borrow. The caps were set to take effect July 1.

U.S. District Judge Beryl Howell issued a temporary restraining order Wednesday night. She ruled the department exceeded its statutory authority when it tried to impose the limits, which would have capped annual borrowing for medical, dental, veterinary and other healthcare graduate students. The administration argued the caps were needed to control rising taxpayer costs from the income-driven repayment system.

The case is Hinds v. DeVos, filed by the American Bar Association and other groups. Howell's order prevents the department from implementing the caps pending a full hearing on the merits. No hearing date has been set yet.

The borrowing limits were part of a broader overhaul of student-loan repayment rules proposed by Trump. The department sought to replace existing income-driven repayment plans with a single new plan that tied monthly payments to income and forgave remaining debt after 15 or 30 years. The healthcare caps were an addition meant to reduce the maximum amount students could borrow under the new plan.

Under the blocked rule, a student in a medical residency, for example, would have been capped at roughly $50,000 in total borrowing, instead of the current $138,500 limit for graduate students. Critics said the caps would discourage students from entering primary care and other lower-paying specialties. The department countered that the caps would protect taxpayers from forgiving loans that exceed what graduates could repay.