An overhaul of federal student loan rules takes effect on Wednesday, affecting millions of borrowers.
The new changes, which originated from Republicans’ tax law, scale back repayment options; cap borrowing amounts for graduate and professional students at $100,000 and $200,000, respectively; and require schools to show their graduates make more than certain earnings thresholds in order to preserve their access to the federal loan program.
The rules face legal challenges: A federal judge last week temporarily blocked part of the rule that would have subjected nurse practitioners, physician assistants, and those in other similar fields to the lower loan cap.
The rule as written “would have a big impact on healthcare workforce” because the lower cap would deter people from going into these fields, said Chantell Taylor of the American Academy of Physician Associates, which is among the organizations suing.