WA sues U.S. Department of Education over unlawfully limiting federal student loan access

Washington and a multistate coalition have 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 in 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.

"Our state needs nurses and other healthcare workers, but this unlawful rule will make it much more difficult for Washingtonians to pursue professional degrees," Attorney General Nick Brown said. "At a time of high healthcare costs, we must build a robust network of primary care providers, but this change will only exacerbate shortages in our state."

Today's case is the 60th lawsuit filed by Washington against the current federal administration.

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 than for professional degree students. 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. Excluded from the department's definition of "professional degrees" are programs for nurse practitioners, physician assistants, physical and occupational therapists, and audiologists.

In Washington, the rule affects hundreds of students in professional degree programs. The University of Washington, Washington State University, and Western Washington University all offer nursing programs. UW, for example, has more than 360 students in its Doctor of Nursing Practice Program and 75 Master of Nursing students, many of whom may be subject to the cap on student loans. Without access to higher loan limits, first-generation university students, those without a co-signer, and students with families to support will likely face the most barriers to pursuing their degrees.

The lawsuit also challenges provisions that limit protections for students already enrolled in programs. The legislation passed by Congress 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. In addition to Brown, the attorneys general of Arizona, California, Connecticut, Delaware, the District of Columbia, Hawai'i, Illinois, Maine, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Vermont, Virginia, and Wisconsin, as well as the governors of Kentucky and Pennsylvania joined the lawsuit.

A copy of the complaint is available here.

In November, Brown and 21 other attorneys general sued the Department of Education for unlawfully restricting eligibility for the Public Service Loan Forgiveness program, which allows government and nonprofit employees to apply to have their federal student loans forgiven after ten years of service. That lawsuit is ongoing.

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