States sue over new student loan limits on certain nursing and healthcare degrees
Twenty-four states and the District of Columbia filed a federal lawsuit challenging a Trump administration rule that restricts federal student loan limits for graduate degrees in nursing and other healthcare fields, excluding them from higher borrowing caps. The lawsuit argues the rule unlawfully narrows the definition of 'professional degree,' limiting loan exemptions to 11 fields while excluding programs like nursing, physical therapy, and nurse anesthesia, despite their critical workforce needs.
A coalition of 24 states and the District of Columbia filed a lawsuit in federal court on Tuesday, challenging a Trump administration rule that limits federal student loan access for borrowers pursuing graduate degrees in nursing and other healthcare fields. The rule, implemented under the One Big Beautiful Bill Act, caps annual graduate borrowing at $20,500 and total borrowing at $100,000, excluding programs like nursing, physical therapy, and nurse anesthesia from higher loan limits reserved for 11 'professional' degrees such as medicine, law, and dentistry. The lawsuit argues the Education Department unlawfully narrowed the federal definition of a professional degree, removing healthcare programs that were previously eligible for higher borrowing caps of $50,000 annually and $200,000 total. New York Attorney General Letitia James stated the rule would 'shut talented people out of critical professions' and worsen healthcare shortages. The plaintiffs also noted the department’s list of exempted degrees was derived from a 1950s-era regulation, when many graduate healthcare programs did not yet exist. The rule does not affect undergraduate borrowers, including those in nursing programs, but critics argue it disproportionately impacts graduate students in high-demand healthcare fields. The American Nurses Association called the rule 'profoundly dismayed,' warning it would exacerbate workforce shortages. The Education Department has defended the changes, stating they apply only to graduate programs and do not impact undergraduate nursing degrees, where 80% of the nursing workforce is employed. The lawsuit highlights a broader debate over federal student loan policies and their impact on professional education. While the administration frames the rule as a cost-saving measure, opponents argue it undermines access to critical healthcare professions during a period of staffing shortages. The case will now proceed in federal court, with the outcome potentially shaping future loan eligibility for graduate students nationwide.
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