NC joins lawsuit against US Department of Education

North Carolina is joining a multistate lawsuit against the U.S. Department of Education over a new rule that restricts federal student loan eligibility for graduate nursing programs. The rule, finalized May 1 and taking effect July 1, narrows the definition of 'professional degree' to exclude post-baccalaureate nursing degrees, such as master’s-prepared nurse practitioner programs and doctoral degrees for nurses. This change caps annual federal loans for graduate nursing students at $20,500, with a lifetime limit of $100,000—a restriction that could hinder education for advanced roles critical to addressing North Carolina’s worsening nursing shortage. The state’s population is aging rapidly, with residents over 65 projected to outnumber those under 18 by the early 2030s. By 2033, North Carolina will need at least 12,500 more nurses, according to data from the Sheps Center for Health Services Research at UNC Chapel Hill. Researchers like Erin Fraher warn the loan limits will exacerbate the shortage, as doctoral nursing programs often require over five years to complete. Attorney General Jeff Jackson announced North Carolina’s participation in a lawsuit filed by 24 states and Washington, D.C., arguing the Department of Education overstepped its authority. The rule excludes nursing, physical therapy, and physician assistant programs from federal loan protections granted to physicians, dentists, and ministers. Jackson called the move 'unlawful' and 'unfair,' citing explicit congressional definitions of professional degrees. Tuition for advanced nursing programs varies widely. Duke University charges around $35,000 per semester, UNC Chapel Hill’s graduate program costs $18,610 per semester, and NC A&T State University’s tuition is approximately $5,366 per semester. Many students rely on federal loans to cover tuition and living expenses, particularly since clinical hours and classroom demands make balancing work and study difficult. Leigh Habegger, a physician assistant student at Wake Forest University, highlighted the financial strain, stating federal loans were a 'lifeline' for her transition from public policy to healthcare. The lawsuit aims to reverse the rule, ensuring continued access to federal aid for nursing students critical to meeting North Carolina’s growing healthcare needs.