Twenty-five states and the District of Columbia are taking the Education Department to court over a policy shift that strips federal loan benefits from nursing degree programs, arguing the move threatens to worsen healthcare worker shortages across the country.
The legal challenge, filed by state governors and attorneys general, centers on the department's decision to reclassify nursing degrees so they no longer qualify as professional degrees. That designation change strips access to federal Parent PLUS loans and higher borrowing limits that have traditionally helped students pursue nursing careers.
State leaders contend the policy will discourage enrollment in nursing programs at a time when hospitals and care facilities face severe staffing pressures. The removal of these loan options could price out middle-class families and make the profession less accessible to potential students, they argue.
The Education Department has not publicly detailed its rationale for the reclassification, though the move aligns with Biden administration priorities around education debt and program accountability. The change affects nursing degree seekers immediately, leaving current and prospective students scrambling to understand their financing options.
The lawsuit represents one of the most significant state-level challenges to Education Department policy in recent years, uniting Republicans and Democrats in a show of bipartisan opposition. Healthcare industry groups have also raised alarms, warning that reduced loan access could exacerbate nurse shortages that hospitals say are already critical.
The case is still in early stages, and a resolution could take months or longer to work through the courts.
Author Sarah Mitchell: "When half the states are willing to sue over a policy, someone at Education headquarters should be asking whether they got this one right."
Comments