States file lawsuit challenging federal graduate nursing loan limits

Twenty-five states filed a lawsuit in federal court challenging a Department of Education rule limiting access to federal student loans for borrowers earning graduate degrees from schools of nursing. The lawsuit says the rule narrows the federal definition of “professional degree” and imposes restrictions Congress did not authorize. In addition, the rule unlawfully excludes many degree programs that qualify under the standards established by federal law, potentially reducing financial aid access for students pursuing advanced education. AONL opposes the final rule, arguing the rule creates new barriers for nurses seeking graduate education. Opponents of the rule say it will force students to seek high interest private loans or abandon advanced practice education, leading to workforce shortages. (NPR article, 5/19/26)