The Cullen Law Firm, PLLC, Secures Preliminary Injunction Blocking Department of Education Graduate Loan Restrictions
WASHINGTON, D.C. — June 25, 2026 — On June 24, 2026, the U.S. District Court for the District of Columbia granted a preliminary injunction halting a portion of a U.S. Department of Education Final Rule that would have that would have restricted the ability of many students seeking professional degrees to obtain federal student loans in amounts sufficient to allow them to afford graduate school. That rule was scheduled to take effect on July 1, 2026.
The Cullen Law Firm, PLLC filed the motion on behalf of the PA Education Association (PAEA) and the American Academy of Physician Associates (AAPA). In granting the injunction, the court found that the associations established a high likelihood of success on the merits on their claims that the Department of Education’s regulatory rewrite of the statutory definition of "Professional Degree" is contrary to law. The court further concluded that the associations' members, particularly prospective PA students, would suffer immediate, irreparable harm if the rule was permitted to take effect.
The litigation centers on the enforcement of statutory limits on federal student loans enacted by Congress last year under the Working Families Tax Cuts Act. That law eliminated the "Grad PLUS" loan program and established two distinct tiers of post-undergraduate federal borrowing limitations: a $20,500 annual cap for "Graduate Students" and a $50,000 annual cap for "Professional Students."
Although PA students explicitly satisfy the statutory criteria for "Professional Students" established by Congress, the parties allege that the Department of Education’s May 1, 2026 Final Rule impermissibly introduced several restrictive conditions absent from the text of the statute. The associations argued that these agency-created criteria unlawfully narrowed the scope of qualifying programs, effectively stripping PA students of their professional student status and higher loan caps.
In their filings, PAEA and AAPA submitted declaration from prospective PA students that the Final Rule would immediately prevent them from being able to finance their education for the upcoming summer and fall terms. Other declarations detailed how depressed enrollment would weaken PA educational institutions and exacerbate provider shortages within the broader U.S. healthcare system, where PAs serve as vital care providers in medically underserved communities. The court's timely injunction should mean that incoming PA students may continue to secure financing under the statutory Professional Student loan limits.
A copy of the court’s memorandum opinion is available [here]. The court has ordered the parties to confer and submit a joint status report regarding further scheduling by July 2, 2026.
For More Details:
Paul D. Cullen, Jr.
The Cullen Law Firm, PLLC
paul@cullenlaw.com
703-298-4558