MD co-leads states opposing federal rule limiting health student loans

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DENVER — Maryland Attorney General Anthony Brown is co-leading a coalition of 24 attorneys general and two governors opposing a proposed U.S. Department of Education rule that would limit federal student loan access for some graduate health programs.

In a comment letter submitted to the department, the coalition said the proposal would restrict loans for students pursuing advanced degrees in fields such as nursing, physician assistant studies and physical therapy.

“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 Colorado Attorney General Phil Weiser, who is co-leading the coalition along with Brown. “This proposed rule would arbitrarily limit student loan access for the very professionals our state urgently needs.”

The rule would implement provisions of the 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 could borrow up to $50,000 annually and $200,000 total.

Congress defined a professional degree as one that meets academic requirements for beginning practice in a profession and requires training beyond a bachelor’s degree. Lawmakers provided examples including medical and law degrees but said the definition was not limited to those programs.

Under the proposed rule, the Education Department would treat that list as exclusive, adding only clinical psychology. Graduate programs in nursing, physician assistant studies and physical therapy would not qualify for the higher loan limits.

Maryland and Colorado co-led the coalition, along with Nevada and New York, Brown said. The other states submitting comments were: Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Virginia, Washington and Wisconsin. The governors of Kansas and Kentucky also signed the letter.

In Colorado, the cost of advanced nursing degrees at public institutions such as the University of Northern Colorado exceeds $100,000, the proposed lifetime loan cap, not including textbooks, clinical placements or lab fees.

State officials say the limits could prevent some students from completing their degrees.

Colorado also faces a projected shortage of registered nurses. Estimates show the state could have 14% fewer nurses than demand by 2030, increasing pressure on the health care workforce.

Coalition members argue the proposed rule conflicts with federal law and Congress’s intent. They said the department has taken what lawmakers described as an illustrative list and turned it into a restrictive definition that excludes professions that meet the criteria for professional degrees.

The letter urges the department to adopt a broader interpretation that reflects modern health care education and workforce needs.