MARYLAND (WBFF) — Maryland Attorney General Anthony Brown is co-leading a coalition of 24 attorneys general and the governors of Kentucky and Pennsylvania in a lawsuit challenging a newly finalized U.S. Department of Education rule that limits access to federal student loans for students pursuing professional degree programs, including many in health care and other critical workforce fields.
AG Brown and the coalition filed the lawsuit on Monday, May 19, in the U.S. District Court for the District of Maryland.
The rule narrows the federal definition of “professional degree” and imposes restrictions the coalition says Congress did not authorize. The lawsuit argues the rule unlawfully excludes many degree programs that qualify under standards established by federal law, potentially reducing access to financial aid for students pursuing advanced education.
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,” Brown said, via a press release. “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 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. The lawsuit points to the University of Maryland School of Nursing in Baltimore, which offers an entry-level Master of Science in Nursing degree that the rule does not classify as “professional.”
Under the department’s definition, a graduate nursing student could borrow up to $20,500 per year for that program in federal student loans, which is $29,500 less than if the degree were classified as professional. The complaint says some students will struggle to cover the gap through private loans.
JOIN THE CONVERSATION (2)
The lawsuit also challenges provisions affecting students already enrolled in programs. While the statute includes a grandfathering provision that delays implementation of the loan caps for currently enrolled students, the coalition argues the rule would cause some students who transfer institutions or temporarily withdraw and later return to lose eligibility for grandfathering, creating additional financial barriers.
Local Story
