U.S. Department of Education's RISE Rule Faces Legal Challenges Over Graduate Student Loan Caps and Professional Degree Definitions

The U.S. Department of Education's Reimagining and Improving Student Education (RISE) rule, which eliminates the Grad PLUS program and caps federal borrowing for most graduate students at $20,500 annually, is currently facing multiple legal challenges. A coalition of 25 states and the District of Columbia sued the Education Department in May, arguing the rule unlawfully rewrites the definition of 'professional degree.' In late June, a federal district court stayed the department's initial definition of 11 'professional' degrees, leading to an interim expansion. In August, four national labor unions filed a third challenge, contending the rule's definition, narrowed interim exception for current borrowers, and compressed implementation timeline are contrary to law and arbitrary. Researchers estimate that 28% of graduate borrowers will exceed the new limits, potentially requiring private financing, which may be inaccessible for those with subprime credit. The rule was published on May 1, 2026, and made effective 61 days later, despite a Higher Education Act directive for Title IV regulations to be published by November 1 to take effect the following July 1.