The U.S. Department of Education has temporarily updated its student loan guidance to include Physician Associate (PA) programs on its proposed list of “professional degrees” following a court order, according to the department.

The new interim guidance comes during an ongoing legal dispute between the department and the American Academy of Physician Associates (AAPA) and the PA Education Association (PAEA). The PA organizations asked the U.S. District Court for the District of Columbia to grant preliminary relief from the department’s new Reimagining and Improving Student Education (RISE) rule, which initially excluded PA degree programs from its “professional degree” definition.

“This case is about fairness and the future of patient care,” Sara Fletcher, CEO of PAEA, said in a June press release. “PA students are preparing to serve patients in every community across this country. Together, we are standing up for educational opportunity, for the integrity of the law, and for the future healthcare workforce that millions of patients will rely upon in the years ahead.”

On May 1, the department finalized the RISE rule, which redefined “professional degrees” and the financial aid limits associated with dozens of existing degree programs, including PA and nursing degrees. The initial change relegated PA programs to “graduate degree” status, which would limit PA students to borrowing $20,500 a year and $100,000 in total, according to an AAPA press release.

Notably, the median tuition for in-state PA students is $96,900 and the total cost of attendance for PA programs often exceeds $200,000, including housing, fees, and other expenses, the academy stated.

“The Department of Education exceeded its authority and created a definition that will have devastating consequences for PA students, the PA workforce, and the patients who depend on them,” said Lisa Gables, CEO of AAPA, in a June press release. “PA programs meet every element of the professional degree definition that Congress established in law; they award entry-level master’s degrees, require rigorous clinical training, and lead to professional licensure in all 50 states. We are in court to ensure the law is implemented as Congress intended.”

On June 3, the AAPA and PAEA filed a lawsuit against the department challenging the new rule. As part of the lawsuit, the PA organizations asked the courts to temporarily block the department’s implementation of the RISE rule, which was set to go into effect on July 1. On June 24, Judge Beryl Howell granted that request. 

In the court order, Judge Howell wrote the RISE rule is “likely contrary to law” and its definition of which students benefit from higher borrowing limits is likely narrower than what Congress originally intended when it passed the “One Big Beautiful Bill Act” in July 2025.

The court’s decision temporarily blocked the new rule from being implemented, which led to the department’s updated guidance. The new guidance stated that “these interim administrative designations are provided solely to facilitate implementation of the Court’s order and may change as litigation in the case proceeds.”

The department began redefining these borrowing limits after Congress passed the “One Big Beautiful Bill Act” last year. The new law required the department to revise “the annual and aggregate limits an individual may borrow in Direct Loans.” It also specified that “professional degrees” would be eligible for borrowing $50,000 a year and $200,000 in total – figures that align more closely with the median tuition and total cost of attending PA programs, according to the AAPA.

According to the new guidance, “professional degrees” are advanced programs that prepare students to practice in professions that require licensure after graduation. Since PAs are subject to varying scope of practice between states, the department suggested that PA degree programs would be disqualified, according to the AAPA. 

The department also stated a “professional degree” is “generally at the doctoral level” and “requires at least six academic years of postsecondary education coursework for completion.” While PA programs are graduate-level, they often culminate in a master’s degree. In February before the rule was finalized, the AAPA argued in its public comments that “PA programs satisfy every element of the definition Congress incorporated into the law.” The Academy also asserted that “Congress did not give ED [Department of Education] the authority to rewrite or narrow” the definition of a “professional degree.”

In a July press release, the AAPA Advocacy Staff emphasized the AAPA and PAEA’s  commitment to seeing their legal challenges through to a final decision.

“The Department’s updated guidance is an important step forward, but it is not the final resolution of our case,” the AAPA Advocacy Staff wrote in the press release. “In the meantime, we encourage current and prospective PA students to remain in close contact with their financial aid office regarding their individual borrowing eligibility.”