Frequently Asked Questions: Court Decision on Federal Student Loans for PA Students

Why was this lawsuit filed?

This lawsuit was filed to assert that the U.S. Department of Education adopted a definition of “professional degree” for federal student loan purposes that is inconsistent with the law Congress enacted in the One Big Beautiful Bill Act (OBBBA).

Congress directed the Department to apply the existing federal definition of “professional degree” for purposes of determining which students qualify for the higher federal Direct Unsubsidized Loan limits. Instead, the Department adopted a new definition that added additional requirements not found in the law, resulting in the exclusion of PA programs and many other health care professions.

We believe this interpretation is unlawful and threatens access to PA education by limiting students’ ability to finance their education. PAEA and AAPA filed suit to ensure that the law is implemented as Congress intended and to protect current and future PA students, the programs that train them, and the patients and communities that rely on a strong PA workforce.

The U.S. District Court for the District of Columbia has now determined that the PAEA and AAPA are likely to succeed on this claim and granted preliminary relief while the case proceeds. Although the litigation is not yet over, this ruling represents an important step toward ensuring that PA students receive the treatment Congress intended under federal law.

What did the court decide?

The court granted preliminary relief in favor of PAEA, AAPA, and other plaintiffs challenging the U.S. Department of Education’s new definition of “professional degree.”

The court concluded that the plaintiffs are likely to succeed on their claim that the Department’s new definition is contrary to law, found that allowing the rule to take effect would cause irreparable harm, and determined that the balance of equities and public interest favor relief. The court therefore stayed key portions of the Department’s new definition while the litigation continues.

This is an important step forward that provides meaningful temporary relief while the case proceeds.

Is this a final decision?

No.

This is a preliminary ruling, not a final decision on the merits.

The litigation will continue in federal court, and the Department of Education may appeal the decision.

Does this restore Grad PLUS loans?

No.

Grad PLUS loans were eliminated lawfully by Congress through legislation. The court’s decision does not restore Grad PLUS Loans or invalidate the statutory loan limits enacted by Congress.

Instead, the lawsuit challenges the Department’s interpretation of which educational programs qualify as “professional degree” programs for purposes of the higher federal Direct Unsubsidized Loan limits.

Does this decision apply only to PA students?

No.

The court granted relief in both the PAEA/AAPA lawsuit and a related lawsuit brought by organizations representing other professions. Specifically, the court halted implementation of extra-textual criteria such as a doctoral requirement and a requirement that professional students not be supervised by other disciplines.

The court’s legal analysis addresses the Department’s interpretation of the federal definition of “professional degree,” which has implications beyond PA education.

What has the Department of Education said?

PAEA is continuing to monitor the Department of Education’s response and will provide updates as they become available.

What does this mean for current and propsective PA students?

The court’s decision provides important temporary relief while the litigation continues.

Current and prospective students should continue working with their PA program and financial aid office regarding financial aid planning. Because the litigation is ongoing, additional developments are possible in the coming weeks and months.

Do I need to do anything right now?

No immediate action is required solely because of the court’s decision.

Pre-PAs, students, and programs should:

• Complete all required financial aid paperwork on time;
• Monitor communications from their PA program;
• Remain in contact with their financial aid office; and
• Watch for updates from PAEA and AAPA.

Could this decision change?

Yes.

Because this is a preliminary ruling, the Department may seek review by the U.S. Court of Appeals.

The court’s order remains in effect unless it is modified by the district court or an appellate court.

Will this delay financial aid awards?

Financial aid offices are responsible for preparing student aid packages.

Some institutions may need time to respond to guidance issued by the Department of Education. Students should contact their financial aid office with questions about their individual aid package.

Are there alternate sources of financial support other than federal loans?

Yes. Many PA students use a combination of funding sources to finance their education. While federal student loans remain an important source of financial support, students may also be eligible for other resources depending on their circumstances such as scholarships, service-based financial assistance, and private loans.

Where can I find updates?

PAEA will continue providing updates as significant developments occur.

Students should also remain in contact with their PA program and financial aid office for institution-specific information.

Can incoming students still enroll with confidence?

Students should continue making educational decisions based on the best information currently available.

The court’s decision provides important temporary relief while the litigation proceeds, and PAEA and AAPA remain confident in the merits of the case. At the same time, because the litigation is ongoing, students should stay informed about future developments.

Will this affect students who are already enrolled?

The professional degree issue is only applicable to students who borrow for their programs for the first time after July 1, 2026. The One Big Beautiful Bill Act provided a grandfathering provision for students enrolled/borrowing for their programs prior to July 1 to continue accessing Grad PLUS loans.

Both current and incoming students should work directly with their financial aid office regarding their available borrowing options.

What should PA programs do while the litigation continues?

PAEA encourages programs to:

• Continue communicating with applicants and students;
• Work closely with their institution’s financial aid offices;
• Avoid making assumptions about future legal developments; and
• Monitor updates from PAEA, AAPA, the Department of Education, and the courts.

Could Congress resolve this issue before the lawsuit ends?

Yes.

Congress always retains the authority to amend federal law. While the current litigation focuses on the Department’s implementation of existing law, Congress could choose to enact legislation addressing these issues.

How long could the litigation take?

It is difficult to predict with certainty.

The district court will continue considering the case, and any appeal could extend the timeline. Litigation involving significant federal regulations often takes many months and, in some cases, longer.

How can I stay informed?

Visit PAEA and AAPA’s websites regularly, monitor communications from your PA program, and watch for official updates from your financial aid office.

As the litigation progresses, PAEA  will continue providing timely information to students, programs, and other stakeholders.