A federal judge said the Trump administration's plan to limit student-loan borrowing for advanced degrees is an overreach of authority. Chip Somodevilla/Getty Images

A federal judge dealt another blow to the Trump administration's plans to cap student-loan borrowing .

US District Judge Michael Simon ruled that the Department of Education exceeded its authority when it intended to restrict access to federal lending for certain professional degrees.

It's the third ruling by a federal judge blocking the department's plan from taking effect. The department had planned to implement a new rule on July 1 that would have limited professional degrees to 11 programs, including dentistry and medicine, while excluding others like nursing and social work.

Only these programs would qualify for a $200,000 lifetime borrowing cap, while other advanced programs would receive a $100,000 lifetime cap.…