Federal Court Blocks Student Loan Rule Affecting Counseling Students

A federal judge has temporarily blocked the U.S. Department of Education from implementing a new rule that would have restricted access to higher federal student loan limits for students in counseling and other graduate health professions.

The court found that the Department likely exceeded its authority by narrowing the definition of a "professional degree" beyond what Congress authorized. As a result, counseling programs and several other healthcare-related fields would have faced reduced borrowing limits beginning July 1.

ACA joined a coalition challenging the rule, arguing that it would create unnecessary barriers for students pursuing careers in mental and behavioral health. The court's decision preserves access to higher federal loan limits while the case proceeds.

While this ruling is an important victory, the broader challenges facing graduate students remain. ACA will continue advocating policies, including the LEAP Act, that ensure equitable access to graduate education and help strengthen the mental health workforce. If you would like to become involved in ACA's advocacy efforts, please contact the ACA Government Affairs and Public Policy team at advocacy@counseling.org.