On May 19, 2026, a coalition of 24 state attorneys general and the governors of Kentucky and Pennsylvania filed a federal lawsuit challenging the U.S. Department of Education’s new rule defining which graduate programs count as “professional degrees” for federal student loan purposes. The suit, State of Maryland v. United States Department of Education, was filed in the U.S. District Court for the District of Maryland and argues that the rule unlawfully denies higher borrowing limits to students in nursing, social work, physical therapy, and other fields.1Maryland Attorney General. Attorney General Brown Sues U.S. Department of Education Over Unlawful Rule Limiting Access to Student Loans for Professional Students
What the Rule Does
The regulation was finalized on May 1, 2026, under a Department rulemaking called “Reimagining and Improving Student Education,” or RISE. It implements loan changes required by the One Big Beautiful Bill Act, which President Trump signed on July 4, 2025. That law eliminated Graduate PLUS loans and created a two-tier borrowing structure for graduate students: one set of caps for “professional” programs and a lower set for everyone else.2Higher Ed Dive. Education Department Finalizes Rule Tightening Federal Student Lending
Under the final rule, only students in 11 designated fields qualify for the higher tier: pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, theology, and clinical psychology. Those students may borrow up to $50,000 per year and $200,000 in the aggregate. Every other graduate student is capped at $20,500 per year and $100,000 in the aggregate. The rule also imposes a universal lifetime borrowing limit of $257,500 across all federal student loans and is scheduled to take effect on July 1, 2026.3Federal Register. Reimagining and Improving Student Education — Federal Student Loan Program Final Regulations
To count as professional, the Department required a program to be “generally at the doctoral level” and to share a four-digit Classification of Instructional Programs code with one of the 11 named degrees. Programs that did not make the list include graduate nursing, physical therapy, occupational therapy, physician assistant studies, social work, speech-language pathology, audiology, and athletic training.4Higher Ed Dive. States Sue Education Department’s Professional Student Definition
What the States Are Arguing
The core claim is that the Department exceeded the authority Congress gave it. The states say the 2025 legislation incorporated an existing federal definition of “professional degree” and that the agency had no license to add new requirements or shrink that definition. By layering on the doctoral-level requirement and the CIP code match, the coalition contends, the Department effectively rewrote the statute.5Arizona Attorney General. Attorney General Mayes Sues U.S. Department of Education Over Student Loan Rule Limiting Access
The complaint also targets the way the rule treats currently enrolled students. The 2025 statute includes a grandfathering provision letting students already in their programs keep existing borrowing terms for up to three years. According to the states, the final rule undercuts that protection by stripping grandfathered status from any student who transfers to a different institution or temporarily withdraws and later returns, even in the same field of study.6New York Attorney General. Attorney General James Sues to Stop Student Loan Cuts for Future Health Care Workers
Maryland Attorney General Anthony G. Brown illustrated the stakes with the University of Maryland School of Nursing’s entry-level master of science in nursing program, where students under the new rule can borrow only $20,500 per year, nearly $30,000 less than if the program were classified as professional.1Maryland Attorney General. Attorney General Brown Sues U.S. Department of Education Over Unlawful Rule Limiting Access to Student Loans for Professional Students More broadly, the coalition argues the rule will push students in excluded programs into high-interest private loans, delay their education, or force them to drop out, worsening healthcare workforce shortages and cutting revenue for public universities.7News from the States. New Student Loan Limits Challenged in Democratic Attorneys General, Governors Lawsuit
The American Hospital Association has said the average annual cost of attendance for nursing and social work graduate programs already exceeds $30,000, well above the $20,500 cap.8American Hospital Association. Fact Sheet: Federal Student Loan Limits for Graduate and Professional Programs
Who Filed the Case
The lawsuit is co-led by four attorneys general: Phil Weiser of Colorado, Anthony G. Brown of Maryland, Aaron D. Ford of Nevada, and Letitia James of New York. They are joined by the attorneys general of Arizona, California, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Vermont, Virginia, Washington, and Wisconsin, along with the governors of Kentucky and Pennsylvania. All the attorneys general in the coalition are Democrats.5Arizona Attorney General. Attorney General Mayes Sues U.S. Department of Education Over Student Loan Rule Limiting Access
How the Department Is Defending the Rule
The Department of Education says the rule is both required by the statute and sound policy. Under Secretary of Education Nicholas Kent said the caps are designed to “drive down tuition at colleges” and to prioritize students’ ability to access affordable education over institutions’ revenue.4Higher Ed Dive. States Sue Education Department’s Professional Student Definition Education Secretary Linda McMahon said that if loan limits pressure schools to reduce costs for nursing programs, “we can get more students to apply.”9NPR. Lawsuit Student Loans Nursing Healthcare Graduate Degree
Officials have also said 95% of nursing students currently borrow below $20,500 per year, that 80% of the nursing workforce does not hold a graduate degree, and that the rule does not affect undergraduate nursing education.9NPR. Lawsuit Student Loans Nursing Healthcare Graduate Degree On the legal question, the Department maintains that the 2025 legislation incorporated an existing regulatory definition that listed specific programs and that treating the category as open-ended would increase loan disbursements and budget outlays beyond what Congress intended.2Higher Ed Dive. Education Department Finalizes Rule Tightening Federal Student Lending
A Second Lawsuit Targets the Same Rule
The states are not alone. A separate case, American Association of Nurse Practitioners v. McMahon, was filed in the same Maryland district court by healthcare and higher education organizations. Those plaintiffs sought emergency relief and moved for a preliminary injunction to block the rule before it takes effect. The court ordered the government to respond by June 3, 2026, and set a schedule aimed at resolving the motion before July 1.10Thompson Coburn. Nurse Associations and Others Also Rise Up in Second Lawsuit Challenging Department of Education’s Final Professional Degree Rule
A separate legislative track is also open. Rep. Mike Lawler, a New York Republican, introduced the Professional Student Degree Act in December 2025, which would expand the qualifying list to include nursing, physical therapy, occupational therapy, physician assistant studies, social work, audiology, public health, business administration, accounting, architecture, secondary education, and special education, among others. That bill has not advanced beyond introduction.11Congressman Mike Lawler. Congressman Lawler Introduces the Professional Student Degree Act
Where the Case Stands
As of mid-June 2026, the case is active before Judge Adam B. Abelson in the District of Maryland, with more than 80 docket entries filed since the complaint was lodged.12CourtListener. State of Maryland v. United States Department of Education No court has issued an injunction blocking the rule in either this case or the parallel nurse practitioners’ suit. Whether a judge intervenes before the July 1 effective date is the pressing question for students, universities, and the states behind the challenge.10Thompson Coburn. Nurse Associations and Others Also Rise Up in Second Lawsuit Challenging Department of Education’s Final Professional Degree Rule
Key Dates
- July 4, 2025: President Trump signs the One Big Beautiful Bill Act.
- January 30, 2026: The Department publishes the proposed rule.
- May 1, 2026: The final rule is published in the Federal Register.
- May 19, 2026: The 24-state coalition files suit.
- June 3, 2026: The government’s court-ordered response deadline in the parallel nurse practitioners’ case.
- July 1, 2026: The rule is scheduled to take effect.