Attorney General Clark Sues Trump Administration Over New Federal Student Loan Rule Limiting Access to Student Loans for Professional Degree Programs

The case marks AG Clark's 50th lawsuit against the Trump Administration

Attorney General Charity Clark today joined a coalition of attorneys general and governors in filing 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, filed today in the U.S. District Court for the District of Maryland, challenges a recently finalized U.S. Department of Education rule that illegally narrows the federal definition of "professional degree" and imposes restrictions Congress did not authorize. The coalition argues that the rule, which was created in response to a law enacted last year, unlawfully excludes many degree programs, such as advanced nursing degrees, that qualify under the standards established by federal law, potentially reducing access to financial aid for students pursuing advanced education.

"Vermont is already experiencing a workforce shortage, particularly in critical fields such as nursing," said Attorney General Clark. "In the face of increased need to serve our aging population, the federal government has invented illegal barriers for students pursuing careers in these fields. The Trump Administration's actions are not only bad public policy; they are also outside the scope of their authority."

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 between the two groups, Congress incorporated an existing federal definition of "professional degree" into law. Today's lawsuit alleges that the U.S. Department of Education unlawfully altered that definition by adding new requirements and narrowing eligibility in ways Congress never authorized.

The coalition argues that 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. For example, the rule excludes nursing degrees from the definition of "professional," making it more difficult for students to pursue advanced nursing degrees and threatening to exacerbate Vermont's existing nursing shortage.

The lawsuit also challenges provisions that limit protections for students already enrolled in programs. The statute includes a provision that delays implementation of the loan caps for currently enrolled students. Under the unlawful rule, however, some students who transfer between institutions or temporarily withdraw and later return to their programs could lose eligibility for prior protections, creating additional financial barriers.

Joining Attorney General Clark in filing this lawsuit are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawai'i, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Virginia, Washington and Wisconsin, as well as the governors of Kentucky and Pennsylvania.

A copy of the complaint is available by request.

This lawsuit is the 50th case Attorney General Clark has brought against the Trump Administration since President Trump took office in January 2025. For more information on actions taken by the Attorney General on behalf of Vermonters, visit our website .

CONTACT: Amelia Vath, Senior Advisor to the Attorney General, 802-828-3171