NJ attorney general joins lawsuit challenging federal limits on student loans for professional degrees
TRENTON, N.J. — Attorney General Jennifer Davenport has joined a multistate lawsuit challenging a new U.S. Department of Education rule that limits access to federal student loans for students pursuing certain professional degree programs, including healthcare-related fields.
The lawsuit, filed in U.S. District Court for the District of Maryland, argues the federal rule unlawfully narrows the definition of “professional degree,” potentially reducing financial aid access for students in advanced healthcare education programs such as Advanced Practice Registered Nurses.
“In the midst of an affordability crisis — and a shortage of crucial healthcare workers — the Trump Administration is raising the cost of a nursing degree and others. That’s counterproductive and unlawful,” Davenport said. “New Jersey needs more advanced practice nurses, physician assistants, and physical and occupational therapists, not fewer. Shrinking the number of graduate health professionals will create more gaps in our overburdened healthcare system.”
According to the lawsuit, Congress in 2025 approved legislation setting annual federal student loan limits of $20,500 for graduate students and $50,000 for professional degree students. The coalition alleges the Department of Education improperly altered the existing federal definition of “professional degree” by adding new eligibility requirements not authorized by Congress.
The coalition argues the rule could create barriers for students pursuing advanced professional training while worsening workforce shortages in critical industries, particularly healthcare.
State officials cited data from the New Jersey Collaborating Center for Nursing indicating New Jersey continues to face shortages of advanced practice registered nurses, a problem the lawsuit claims could worsen if enrollment declines because of reduced financial aid availability.
The lawsuit also challenges provisions affecting students already enrolled in degree programs. According to the complaint, some students who transfer schools or temporarily withdraw from programs could lose protections delaying implementation of the new loan caps.
The lawsuit is co-led by attorneys general from Colorado, Maryland, Nevada and New York. New Jersey joined Arizona, California, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Massachusetts, Michigan, Minnesota, New Mexico, North Carolina, Oregon, Rhode Island, Vermont, Virginia, Washington and Wisconsin, along with the governors of Kentucky and Pennsylvania, in the legal challenge.
