Lawsuit filed by 25 states, D.C. claims new federal student loan limits would harm health care workforce

A lawsuit filed May 19 by 25 states and the District of Columbia against the Department of Education claims that the agency’s final rule establishing new federal student loan limits would harm the health care workforce. The rule, issued April 30, defines the terms “professional student” and “graduate student” to determine federal student loan amounts based on the program in which a student is enrolled. The plaintiffs claimed that the new limits would reduce enrollment and employment. 

“These shortages will predictably drive up costs for the States as employers,” the plaintiffs wrote. “For example, by reducing the supply of nurses, PAs [physician assistants], and other health professionals, the Final Rule will likely force States to pay higher salaries to avoid losing their employees to competitors. That will likely increase personnel costs for State-funded hospitals, clinics, and correctional systems.” 

The rule defines “professional students” as individuals enrolled in one of 11 designated professional degree programs: pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, theology and clinical psychology. Students in those programs would qualify for up to $50,000 in federal loans per year, with a $200,000 aggregate limit, while graduate students would be eligible for up to $20,500 in federal student loans per year, with a $100,000 aggregate limit. The changes are set to take effect on July 1.