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Federal Judge Strikes Down Trump Administration’s Student Loan Borrowing Limits


As millions of Americans come to terms with the fact that the loans they signed for as college freshmen now have to be paid back, many parents and college applicants are reconsidering whether they should borrow at all, and if so, how much. 

And as part of his effort to address the free-flowing cash that led to the current student loan debt crisis, President Donald Trump pushed for caps on the amount that students can borrow in certain situations.

It’s not unlike the limits that every other consumer has based on his or her circumstances, but leftists are nevertheless up in arms about any limitations.

CNBC reported on what one judge did to stymie the White House:

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U.S. District Judge Beryl Howell in Washington froze, for now, some of the federal student loan caps established by the U.S. Department of Education. The department was implementing the limits set in President Donald Trump’s tax and spending bill, the “one big beautiful bill act.”

Under the new regulations, previously set to begin on July 1, most graduate students are subject to a $20,500 a year borrowing cap, while so-called professional students can take out up to $50,000 annually. Previously, graduate students were able to borrow as much as their program cost to attend. 

The order, issued late on Wednesday, stays the Education Department’s definition of a “professional degree.” The Trump administration had identified 11 degrees, including medicine, dentistry and theology, that fit under that label. 

The Education Department is “reviewing the order and will take appropriate action,” said Ellen Keast, press secretary for higher education at the agency.

The latest decision attempting to strike down a Trump proposal drew some attention on social media:

The Hill provided some additional coverage: 

In the combined suits, Howell backed the joint plaintiffs’ assertion that the rule would irreparably harm impacted students. 

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“Plaintiffs in both suits have established that they are likely to succeed on their APA claim that the Rule’s definition of ‘professional degree’ is contrary to law, that they would suffer irreparable harm should the Rule go into effect, and that the balance of equities and the public interest are in their favor,” wrote Howell, an appointee of former President Obama, in a 52-page ruling.

Officials from the PAEA and the American Academy of Physician Associates (AAPA) praised Howell’s ruling as “an important step forward” for impacted students.

“By granting preliminary relief, the Court recognized that the harm caused by this rule is too significant to ignore and that PA students should not be forced to suffer its consequences while the case is being decided,” the groups noted in a joint statement. 

Here’s what one of the measure’s supporters had to say about it:

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