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BALTIMORE, MD – Attorney General Anthony G. Brown today 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, including many healthcare and other critical workforce fields.
The recently finalized rule narrows the federal definition of “professional degree” and imposes restrictions Congress did not authorize. In challenging the rule, the coalition argues it unlawfully excludes many degree programs that qualify under the standards established by federal law, potentially reducing access to financial aid for students pursuing advanced education.
A video statement from Attorney General Brown is available here: https://youtu.be/8KEQr0Ye_TU
“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,” said Attorney General Brown. “We will not allow this Administration to price our future healthcare professionals out of the workforce.”
In July 2025, Congress passed legislation imposing new limits on federal student loans for graduate and professional students. The new limits are lower for graduate students than for professional students; to distinguish the two, Congress incorporated an existing federal definition of “professional degree” into law. The lawsuit alleges that the Department of Education unlawfully altered that definition by adding new requirements and narrowing eligibility in ways Congress never authorized.
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. For example, the University of Maryland School of Nursing in Baltimore offers an entry-level Master of Science in Nursing degree that the Final Rule improperly refuses to classify as “professional.” Under the Department’s definition, a graduate nursing student could only borrow up to $20,500 per year for that program in federal student loans, $29,500 less than if the degree were correctly classified as professional. Some students will struggle to borrow funds through private loans to cover the gap.
The complaint notes that these impacts could be particularly significant for healthcare professions, which already present significant workforce challenges.
The lawsuit also challenges provisions that limit protections for students already enrolled in programs. The statute includes a grandfathering provision that delays implementation of the loan caps for currently enrolled students. Under the rule, however, some students who transfer institutions or temporarily withdraw and later return to their programs could lose eligibility for grandfathering, creating additional financial barriers.
The coalition filed the lawsuit in the U.S. District Court for the District of Maryland
The lawsuit is being co-led by Attorney General Brown, Colorado Attorney General Phil Weiser, Nevada Attorney General Aaron D. Ford and New York Attorney General Letitia James. Joining the coalition are the attorneys general of 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, as well as the governors of Kentucky and Pennsylvania in filing the lawsuit.
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