On May 19, 2026, Maryland Attorney General Anthony Brown, Colorado Attorney General Phil Weiser, Nevada Attorney General Aaron D. Ford and New York Attorney General Letitia James co-led a coalition of 24 attorneys general and the Governors of Kentucky and Pennsylvania in challenging a new U.S. Department of Education rule that unlawfully limits access to federal student loans for students pursuing professional degree programs. Many of the programs excluded under the new rule are in healthcare and other critical workforce fields. 

In July 2025, Congress passed legislation imposing new limits on federal student loans for graduate and professional students.  The new federal student loan caps distinguish between “graduate” and “professional” degree programs. The law set higher federal loan limits for students enrolled in professional degree programs, which often require extensive training, clinical placements, and professional licensure. Loans for non-professional graduate degree programs were capped at $20,500 annually and $100,000 as a lifetime limit. Students pursuing professional degree programs qualify for up to $50,000 per year and $200,000 in total. While Congress provided 10 examples of professional programs qualifying for the higher limits, including medical and law degrees, statutory language made clear that professional degrees are “not limited to” those examples.  

In May 2026, however, the Trump administration issued a final rule unlawfully narrowing the definition of professional degree programs. The rule imposes new restrictions not enacted by Congress, leaving many health care and other professional degree programs unable to qualify for the higher loan limits. The Department of Education has acknowledged that several excluded programs meet Congress’ definition of a professional degree, but nevertheless refused to classify them as such under its new rule. As a result, students pursuing degrees in nursing, physical therapy, occupational therapy, physician assistant studies, social work, speech-language pathology, audiology, athletic training, and other fields will only be able to access $20,500 per year in federal student loans. 

The coalition argues the rule could harm states by reducing revenue for public institutions of higher education, creating barriers for students pursuing advanced training, and worsening workforce shortages in critical professions. They argue the rule will make it harder for patients – especially those in rural and underserved communities – to access care. The rule will also force many students to rely on more expensive private loans, take on unsustainable debt, delay completing their education, or abandon these programs altogether.  

In their lawsuit, the coalition claims that the rule’s narrow and unreasoned definition of “professional degree” is in direct conflict with federal law and in violation of the Administrative Procedure Act. Federal law provides that currently enrolled students who borrowed federal student loans as of June 30, 2026, are exempted from the new loan limits. But the final rule excludes students who transfer institutions or withdraw and re-enroll from the exemption, which the lawsuit says is also both contrary to the statute and arbitrary and capricious. The states are asking the court to block the rule and ensure the loans are made available as Congress intended. 

This unlawful rule doesn’t just limit loans for graduate students: it limits students’ futures. By capping loan amounts, the Trump Administration will force Marylanders who want to be nurses, physician assistants, or physical therapists to decide between taking on more expensive private loans, or walking away from their chosen career. We will not allow this Administration to price our future healthcare professionals out of the workforce.Attorney General Anthony Brown

You should not have to be wealthy to serve your community as a nurse, physical therapist, or physician assistant. Higher education is expensive, and our health care system is already under immense strain. This rule will shut talented people out of critical professions and leave communities with fewer health care providers they desperately need. We cannot afford fewer nurses, fewer providers, or fewer opportunities for working people to enter these essential fields.Attorney General Letitia James