State AGs Oppose Federal Rule Restricting Healthcare Student Loans

CO Attorney General Press Releases

Published March 3rd, 2026

Detected March 5th, 2026

Summary

A coalition of 24 state Attorneys General, led by AG Phil Weiser, submitted a comment letter opposing a proposed U.S. Department of Education rule. The rule would significantly restrict federal student loan access for graduate students in critical health professions, which the AGs argue contradicts congressional intent and exacerbates healthcare shortages.

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What changed

The U.S. Department of Education has proposed a rule that would cap federal student loans for most graduate students at $20,500 annually and $100,000 total. While Congress defined "professional degree" broadly, the proposed rule would treat a limited, decades-old list of examples as exclusive, excluding graduate programs in nursing, physician assistant studies, and physical therapy from higher loan limits. This action is being opposed by a coalition of 24 state Attorneys General and two governors, who argue it violates federal law by misinterpreting congressional intent and will worsen existing healthcare workforce shortages.

Regulated entities, particularly educational institutions offering graduate health profession programs, should be aware of this proposed rule and its potential impact on student enrollment and financial aid. The coalition urges the Department of Education to adopt a broader interpretation consistent with current healthcare workforce needs. While this is a consultation, the AGs' strong opposition indicates a potential for future legal challenges or advocacy if the rule is finalized as proposed. No specific compliance deadline is mentioned, as this is a comment period for a proposed rule.

What to do next

Review the proposed U.S. Department of Education rule on student loan limits for graduate health professions.
Assess the potential impact of the proposed rule on student enrollment and financial aid for relevant programs.
Monitor the Department of Education's response to public comments and any subsequent final rule publication.

Source document (simplified)

Attorney General Phil Weiser leads coalition opposing federal rule that would restrict student loan access for healthcare professionals

March 3, 2026 (DENVER) – Attorney General Phil Weiser co-led a coalition of 24 attorneys general and two governors in submitting a formal comment letter opposing a proposed rule by the U.S. Department of Education (PDF) that would significantly limit federal student loan access for graduate students in nursing, physician assistant programs, physical therapy, and other critical health professions.

“Colorado communities depend on nurse practitioners, physician assistants, and other highly trained healthcare professionals to provide essential care, especially in rural and underserved areas,” said Attorney General Weiser. “This proposed rule would arbitrarily limit student loan access for the very professionals our state urgently needs. Congress made clear that professional degrees are not limited to a short list drafted decades ago. The department should not reinterpret the law in a way that worsens healthcare shortages and puts higher education further out of reach for hardworking Coloradans.”

The proposed rule implements provisions of the so-called One Big Beautiful Bill Act by capping federal student loans for most graduate students at $20,500 per year and $100,000 total. Students pursuing certain “professional degrees” may borrow up to $50,000 annually and $200,000 total. Congress defined “professional degree” broadly as a degree that signifies completion of the academic requirements for beginning practice in a profession and a level of professional skill beyond a bachelor’s degree. While Congress provided 10 examples, including medical and law degrees, it made clear that professional degrees are “not limited to” those examples.

The Education Department’s proposed rule would instead treat that list as exclusive, adding only clinical psychology. As a result, graduate programs in nursing, physician assistant studies, physical therapy, and other essential health fields would be excluded from higher loan eligibility limits.

In Colorado, the total cost of advanced nursing degrees at state institutions like the University of Northern Colorado exceeds $100,000 — the proposed lifetime loan cap — not including additional expenses such as textbooks, clinical placements, or lab fees. Students currently enrolled in these programs have expressed concern they may be unable to complete their degrees if the caps take effect.

Colorado is already facing a significant nursing workforce shortfall, with projections showing the state may have 14% fewer registered nurses than demand by 2030 (opens new window), underscoring the ongoing strain on the healthcare workforce. Limiting access to affordable federal student loans would make it harder for students to enter high-demand health professions and could further reduce access to care across the state, particularly in rural and underserved communities.

In their letter, Attorney General Weiser and the coalition argue the proposed rule violates federal law by contradicting Congress’s clear intent. The Education Department has taken what Congress described as an illustrative list and transformed it into a rigid limit. The original examples were developed decades ago, before graduate programs in nursing, physician assistant studies, and physical therapy became widespread. By freezing that list in place, the department ignores the evolution of modern healthcare education and excludes professions that clearly meet Congress’s definition of a professional degree.

The coalition urges the department to abandon its narrow interpretation and adopt a broader definition consistent with congressional intent and today’s healthcare workforce needs.

Joining Attorney General Weiser in submitting the comments are the attorneys general of Arizona, California, Connecticut, Delaware, the District of Columbia, Hawai‘i, Illinois, Maine, Massachusetts, Maryland, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Virginia, Washington, and Wisconsin, as well as the governors of Kansas and Kentucky.

Read the comment letter (PDF).

Media Contact:
Mallory Boyce
Communications Specialist
720-219-1898
mallory.boyce@coag.gov

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