Federal Judge Blocks Key Portion of Student Loan Rule Affecting Audiology Students

A federal judge has temporarily blocked a U.S. Department of Education rule that would have significantly restricted access to federal student loans for students pursuing many healthcare-related graduate and professional degree programs, including audiology. The decision represents an important development in the ongoing debate over how advanced healthcare degrees are classified for federal student aid purposes.

On June 25, U.S. District Judge Beryl Howell issued a preliminary injunction preventing the department from implementing its revised definition of a “professional degree.” The department’s rule, finalized earlier this year, limited the professional degree designation to a narrow list of 11 fields, including medicine, dentistry, pharmacy, law, and optometry, while excluding many healthcare professions such as advanced nursing, physician assistant, physical therapy, and audiology programs.

Judge Howell found that Congress, through the 2025 One Big Beautiful Bill Act (OBBBA), incorporated a longstanding federal regulatory definition of “professional degree” into law. Because that definition was already established in federal regulations and included a broader, non-exhaustive framework, the court concluded that the department likely exceeded its authority by narrowing the definition through regulation. As a result, the department must continue using the prior definition while the litigation proceeds.

Importantly, the ruling does not block the new federal borrowing limits established by Congress. Beginning July 1, 2026, graduate students remain subject to a $20,500 annual borrowing limit and a $100,000 aggregate cap, while students enrolled in programs classified as professional degree programs may borrow up to $50,000 annually and $200,000 in total. The injunction affects only which programs qualify for the higher professional student limits.

For audiology, the decision provides temporary relief from a department policy that would have treated AuD programs as standard graduate education rather than professional education. The American Academy of Audiology has consistently expressed concern that restricting access to federal student aid could create additional barriers for students entering the profession, particularly at a time when hearing healthcare workforce needs continue to grow.

While the injunction preserves the broader definition of professional degrees for now, the legal challenge is ongoing. The Department of Education may appeal the ruling or undertake a new rulemaking process. The Academy will continue to monitor developments and advocate for policies that ensure audiology students have access to the financial resources necessary to pursue doctoral-level professional education.