Attorneys General Challenge Federal Rule Jeopardizing Healthcare Student Loan Access

Maryland Attorney General Anthony G. Brown has joined a coalition of 24 attorneys general and two governors in formally opposing a proposed federal rule that could significantly limit student loan access for aspiring healthcare professionals. The rule, stemming from the One Big Beautiful Bill Act (H.R. 1) and issued by the U.S. Department of Education, seeks to cap federal student loan amounts for graduate students pursuing critical health fields, a move the coalition argues will exacerbate existing healthcare shortages nationwide.

The proposed change under H.R. 1 would establish a new annual federal student loan limit of $20,500 and a total cap of $100,000 for graduate students. While a provision exists allowing students pursuing “professional” degrees to borrow up to $50,000 annually and $200,000 in total, the Department’s proposed rule would narrow the definition of “professional degree” to an exclusive list of ten examples, plus Clinical Psychology. This would exclude many essential health professions, such as nurse practitioners, physician assistants, and physical therapists, from accessing the higher loan limits. The coalition contends that this restrictive interpretation contradicts congressional intent.

The attorneys general argue that the Department is unlawfully transforming an illustrative list of degrees into a rigid limitation. They point out that the original list of examples for professional degrees was established in the 1950s, a time when many of today’s common graduate health programs, like those for nurse practitioners and physician assistants, were not yet widespread. By adhering to this outdated list, the coalition asserts that the Department is disregarding significant advancements and changes in the health professions over the past several decades and is failing to recognize individuals in these crucial fields who clearly fit Congress’s original definition of needing higher loan limits for their advanced education.

The impact of such a rule could be particularly severe for states already grappling with healthcare workforce shortages. If students are unable to secure sufficient loans to cover the costs of programs like nursing, physician assistance, and physical therapy, the coalition warns that the pipeline of qualified healthcare professionals will shrink. For instance, at the University of Maryland, Baltimore, graduate nursing programs have annual costs that far exceed the proposed $20,500 annual federal loan limit. These programs are inherently expensive due to the need for specialized equipment and maintaining low faculty-to-student ratios to ensure educational quality and student safety. Limiting student borrowing capacity could deter individuals from pursuing these essential healthcare careers, potentially leading to fewer practitioners available to serve the public. The coalition is urging the Department of Education to reconsider its narrow definition and adopt a broader interpretation of “professional degree” that aligns with the original legislative intent.

Co-leading the comment letter with Maryland Attorney General Brown are the attorneys general of Nevada, Colorado, and New York. They are joined by their counterparts from Arizona, California, Connecticut, Delaware, the District of Columbia, Hawai‘i, Illinois, Maine, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Vermont, Virginia, Washington, and Wisconsin. Additionally, the governors of Kansas and Kentucky have lent their support to the coalition’s opposition.

Article by Mel Anara, based upon information from the Maryland Attorney General’s Office.

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