California and a coalition of Democratic-led states filed suit against the Trump administration over new limits on federal student loans for aspiring nurses, physician’s assistants, therapists, social workers, and other healthcare workers. The states argue the restrictions will further reduce an already struggling healthcare workforce and violate federal law through unauthorized agency overreach.
The New Loan Cap Rule
In response to Congress passing the “One Big Beautiful Bill” in July 2025, which placed new limits on student loans, the U.S. Department of Education issued a rule on May 1 defining professional student categories. The rule allows applicants categorized as “professional students” (doctors, pharmacists, dentists, veterinarians, lawyers, and religious academics) to borrow up to $50,000 annually and $200,000 in total. However, the department excluded nursing and advanced healthcare degrees from this “professional student” category, capping them instead at $20,500 per year and $100,000 in total—the rate for “graduate students.”
California Attorney General Rob Bonta described the change as an “illegal overreach” that is “deeply shortsighted,” arguing the department violated the Administrative Procedure Act by redefining who qualifies as a professional student. The lawsuit, filed in U.S. District Court in Maryland, includes attorneys general from numerous states, the District of Columbia, and governors of Kentucky and Pennsylvania. This marks Bonta’s 68th lawsuit against the second Trump administration.
Healthcare Industry Response
Nearly 150 members of Congress, including more than a dozen Republicans, expressed “disappointment” over excluding post-baccalaureate nursing degrees, noting that “at a time when our nation is facing a healthcare shortage, especially in primary care, now is not the time to cut off the student pipeline to these programs.” The American Association of Colleges of Nursing stated it was “angered by the Department of Education’s failure to support the nursing profession as the demand for patient care services rises.” The University of California announced it “strongly opposed” the caps, citing their disproportionate impact on lower-income graduate students pursuing health careers.
This article is an AI-assisted summary. All facts and figures are drawn from the original report: https://www.arcamax.com/healthtips/s-4205001