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Nursing Associations Sue Education Department Over Rule That Excludes Graduate Nursing From Higher Loan Caps

Nursing Associations Sue Education Department Over Rule That Excludes Graduate Nursing From Higher Loan Caps
Eleven nursing associations have sued the Department of Education in federal court over what they claim is an unlawful exclusion of nursing from an official list of professional programs.getty

Eleven national nursing organizations have sued the U.S. Department of Education in Massachusetts federal court over an April 30 rule that excludes post‑baccalaureate nursing from a list of "professional degrees." The rule, tied to new federal borrowing limits enacted last year, would allow "professional students" higher annual and aggregate loan caps than other graduate students. Plaintiffs say the department exceeded its authority and acted arbitrarily; they seek to vacate and enjoin the rule. A separate multistate challenge is pending in Maryland.

Eleven national nursing organizations have filed a federal lawsuit in Massachusetts challenging the U.S. Department of Education’s April 30 final rule that excludes post‑baccalaureate nursing programs from a list of degrees designated as qualifying "professional degrees." The groups say the rule unlawfully narrows which graduate programs qualify for higher federal student loan caps and will hinder nurses pursuing advanced credentials amid ongoing workforce shortages.

What the Rule Does

The challenged rule defines "professional student" and "graduate student" to determine maximum federal borrowing limits established by Congress last year. Under the department’s interpretation, "professional students" may borrow up to $50,000 per year (with a $200,000 aggregate cap), while other graduate students would be limited to $20,500 per year (with a $100,000 aggregate cap). These changes are scheduled to take effect on July 1.

Why Nursing Groups Are Suing

The Education Department’s final rule lists 11 program types that qualify as "professional degree" programs: pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, theology and clinical psychology. Post‑baccalaureate nursing degrees and several allied health advanced programs are not included.

The plaintiffs — a coalition that includes the American Nurses Association; the American Association of Nurse Anesthesiology; the Association of Women’s Health, Obstetric and Neonatal Nurses; the American College of Nurse Midwives; and others — argue the department exceeded its statutory authority, acted arbitrarily and capriciously, and failed to adequately respond to public comments during the rulemaking process. They ask the court to vacate the challenged portions of the final rule and to block its enforcement.

“Increasing barriers to post‑baccalaureate nursing education doesn’t just limit opportunities and access to education, it limits patients’ access to timely care from trusted, highly trained practitioners,” said Jennifer Mensik Kennedy, president of the American Nurses Association, in a news release.

Broader Legal Fight and Stakes

This is the second federal challenge to the rule. Earlier, 25 states and the District of Columbia sued the Department of Education in Maryland federal court, arguing the agency narrowed the statutory definition of professional degrees in violation of the Administrative Procedure Act. Those plaintiffs warn the rule will worsen health workforce shortages and increase costs for state‑run facilities that must raise wages to retain scarce staff.

The Department of Education defends the rule as a measure to rein in rapidly rising graduate tuition and to target federal borrowing where it believes limits are needed. Nursing leaders counter that restricting loan access for advanced nursing degrees will constrict pipelines for critical roles — such as nurse anesthetists and nurse midwives — and could reduce access to essential care, especially in rural and underserved communities.

The lawsuits are pending in federal courts in Massachusetts and Maryland. The outcomes will determine whether post‑baccalaureate nursing programs remain eligible for the higher loan caps or are subject to the lower graduate limits when the July 1 changes take effect.

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Nursing Associations Sue Education Department Over Rule That Excludes Graduate Nursing From Higher Loan Caps - CRBC News