Attorney General Phil Weiser sues U.S. Department of Education over restrictions on student loan access for healthcare professionals

May 19, 2026 (DENVER) — Attorney General Phil Weiser today co-led a coalition of 24 attorneys general and two governors in suing the U.S. Department of Education over a new final rule that would significantly limit federal student loan access for graduate students in critical health professions.

The rule that takes effect July 1, 2026, caps federal student loans for most graduate students at $20,500 per year and $100,000 total. Students pursuing certain professional degrees may borrow up to $50,000 annually and $200,000 total. Congress defined professional degree broadly as a degree that signifies completion of the academic requirements for beginning practice in a profession and a level of professional skill beyond a bachelor’s degree. While Congress provided 10 examples, including medical and law degrees, it made clear that professional degrees are “not limited to” those examples.

The Education Department’s rule would instead treat that list as exclusive, adding only clinical psychology. As a result, graduate programs in nursing, physician assistant studies, physical therapy, and other essential health fields would be excluded from higher loan eligibility limits.

“Communities throughout Colorado, especially in rural and underserved areas, need highly trained healthcare professionals to provide needed care,” said Attorney General Weiser. “Congress made clear that professional degrees are not limited to a short list drafted decades ago. But this rule unlawfully limits student loan access for needed professions, including healthcare.”

Colorado is already facing a significant nursing workforce shortfall, with projections showing the state may have 14% fewer registered nurses than demand by 2030 (opens new tab), underscoring the ongoing strain on the healthcare workforce. Limiting access to affordable federal student loans would make it harder for students to enter high-demand health professions and could further reduce access to care across the state, particularly in rural and underserved communities.

In their lawsuit, Attorney General Weiser and the states claim that the rule’s narrow and unreasoned definition of “professional degree” is in direct conflict with federal law and in violation of the Administrative Procedure Act. Federal law provides that currently enrolled students who borrowed federal student loans as of June 30, 2026, are exempted from the new loan limits. But the final rule excludes students who transfer institutions or withdraw and re-enroll from the exemption, which the lawsuit says is also both contrary to the statute and arbitrary and capricious.

The states urge the court to declare the challenged portions of the final rule to be unlawful, vacate them, and enjoin the department from enforcing or implementing them. The lawsuit is filed in the U.S. District Court for the District of Maryland (PDF).

Attorney General Weiser, Attorney General Anthony Brown of Maryland, Attorney General Aaron Ford of Nevada, and Attorney General Letitia James of New York are co-leading the lawsuit. They are joined by 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, Washington, and Wisconsin, as well as the governors of Kansas and Kentucky.

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Media Contact:
Lawrence Pacheco
Chief Communications Officer
(720) 508-6553 office
lawrence.pacheco@coag.gov