District court stays implementation of portion of DOE final rule defining ‘professional student’

The U.S. District Court for the District of Columbia June 25 ruled to stay implementation of the portion of the Department of Education’s final rule defining “professional student” for determining federal student loan amounts under new statutory borrowing limits. The rule defined the terms “professional student” and “graduate student” to determine federal student loan amounts based on the program in which a student is enrolled. AONL disagreed with the Department of Education rule, which would limit nurses pursuing graduate degrees to federal borrowing limits of $20,500 per year and $100,000 in aggregate, compared to students enrolled in programs deemed “professional,” who could borrow up to $50,000 a year in federal loans and a $200,000 aggregate limit. The American Hospital Association also expressed concerns about healthcare professions being excluded under the professional student definition.  “Among the adverse effects enumerated is that the reduction of access to funding necessary for students to pursue their graduate and professional education will exacerbate healthcare workforce shortages, particularly in specialized nursing fields and for service in rural and other underserved areas,” Judge Beryl A. Howell wrote in her opinion. The rule was scheduled to take effect July 1.