States Challenge Loan Rule That Affects Nursing Education

In May 2026, twenty-five states and the District of Columbia filed a lawsuit against the U.S. Department of Education. The governors and attorneys general have argued the department has narrowed the legal definition of "professional degree" for federal loan limits, and that change has removed many graduate nursing programs from the professional category. The department has said most nursing students borrow below the new yearly caps and would not be affected.

Under the new loan framework, professional students can borrow up to $50,000 a year and $200,000 total, while other graduate students face $20,500 a year and $100,000 total beginning July 1, 2026. Nursing groups and several state leaders have warned this could reduce the number of nurses and slow workforce growth, since students may be less able to pay tuition without higher federal loans. Several state attorneys general, including Washington and Massachusetts, have joined the suit to protect students and health-care training programs.