Attorney General Ellison sues U.S. Department of Education over student loan rule limiting access to student loans for professional degree programs
Coalition challenges unlawful rule that could restrict access to advanced education and worsen workforce shortages
May 20, 2026 (SAINT PAUL) — Attorney General Ellison, alongside a coalition of other attorneys general, has filed a lawsuit against the U.S. Department of Education over a new rule that unlawfully limits access to federal student loans for students pursuing professional degree programs, including many healthcare and other critical workforce fields.
The lawsuit challenges a recently finalized Department of Education rule that narrows the federal definition of “professional degree” and imposes restrictions Congress did not authorize. The coalition argues the rule unlawfully excludes many degree programs that qualify under the standards established by federal law, potentially reducing access to financial aid for students pursuing advanced education.
"I have no idea why the Trump administration would unlawfully limit access to federal student loans for people studying to become physical therapists or physician assistants,” said Attorney General Ellison. “No matter their reason, this rule is clearly unlawful and will harm the well-being of Minnesotans by reducing the number of trained medical professionals capable of treating folks across our state. I’m taking the Trump administration to court to halt this unlawful, foolish, and harmful rule from taking effect.”
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 ($20,500 annually, $100,000 in aggregate) than for professional degree students ($50,000 annually, $200,000 in aggregate). To distinguish the two, Congress incorporated an existing federal definition of “professional degree” into law. The lawsuit alleges that 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 support for public institutions of higher education, creating barriers for students pursuing advanced training, and worsening workforce shortages in critical professions. The complaint notes that these impacts could be particularly significant in fields such as healthcare, where states already face ongoing workforce challenges. The Department of Education’s rule does not classify the following as professional degrees, meaning they would be ineligible for higher borrowing limits: Doctorates in Physical Therapy, Advanced Practice Registered Nurses, physician assistant programs generally, speech-language pathology programs, to name a few.
The lawsuit also challenges provisions that limit protections for students already enrolled in programs. The statute includes a grandfathering provision that delays implementation of the loan caps for currently enrolled students. Under the rule, however, some students who transfer institutions or temporarily withdraw and later return to their programs could lose eligibility for grandfathering, creating additional financial barriers.
The coalition filed the lawsuit in the U.S. District Court for the District of Maryland.
The lawsuit is being co-led by Colorado Attorney General Phil Weiser, Maryland Attorney General Anthony G. Brown, Nevada Attorney General Aaron D. Ford and New York Attorney General Letitia James. Attorney General Ellison is joining the co-lead states and the attorneys general of Arizona, California, Connecticut, Delaware, the District of Columbia, Hawai‘i, Illinois, Maine, Massachusetts, Michigan, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Vermont, Virginia, Washington and Wisconsin, as well as the governors of Kentucky and Pennsylvania in filing the lawsuit.
