N.J. sues U.S. Education Department over professional degree student loan limits

New Jersey Attorney General Jennifer Davenport joined 23 other states and D.C. on Tuesday to sue the U.S. Department of Education over a rule that the states argue illegally restricts access to federal student loans for professional degree programs. 

In the 49-page suit, the states argue that the new rule unnecessarily restricts the definition of “professional degree,” leaving students pursuing many such degrees, like advanced practice registered nurses, in a tougher spot for financial aid. 

If such degrees are classified as graduate rather than professional degrees, students can take a max of about $20,000 in federal student loans each year, as opposed to $50,000 for professional degrees.

“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.”

The states argue that Congress incorporated the prior definition of “professional degree” into federal law last year, thus making it ineligible for adjustment via the executive branch’s rulemaking process.

The Attorney General’s Office said the New Jersey Collaborating Center for Nursing has found there to be a nursing shortage in New Jersey, including among advanced practice registered nurses, a problem that would only worsen in the case of decreased enrollment due to the new rule. The Department of Education has said that most such nursing students would not be significantly affected. 

The suit, filed in the U.S. District Court for the District of Maryland, asks a federal judge to strike down the rule.