Press Release  AG Campbell Challenges U.S. Department Of Education Rule Limiting Access To Student Loans For Essential Professional Degree Programs

Boston — Massachusetts Attorney General Andrea Joy Campbell today joined a coalition of attorneys general in filing a lawsuit against the U.S. Department of Education over a new rule that unlawfully limits access to federal student loans for students pursuing professional degree programs, including many healthcare and other critical workforce fields. 

The lawsuit challenges a recently finalized Department of Education rule that narrows the federal definition of “professional degree” and imposes restrictions Congress did not authorize. The coalition argues the rule unlawfully excludes many degree programs that qualify under the standards established by federal law, potentially reducing access to financial aid for students pursuing advanced education. 

“For years, the federal student loan program has expanded access to higher education for the next generation of skilled professionals, creating more opportunities for individuals to earn degrees in essential fields,” said AG Campbell. “The Trump Administration’s attempt to re-write the rules governing this program and unlawfully exclude certain professional degrees threatens the wellbeing of our communities and would exacerbate labor shortages in critical industries like healthcare. I’ll continue to hold this Administration accountable when they attempt to exceed their authority and take actions that harm our residents.” 

In July 2025, Congress passed legislation imposing new limits on federal student loans for graduate and professional students. The new limits are lower for graduate students than for professional degree students; to distinguish the two, Congress incorporated an existing federal definition of “professional degree” into law. The lawsuit alleges that the Department of Education unlawfully altered that definition by adding new requirements and narrowing eligibility in ways Congress never authorized. 

The coalition argues the rule could harm states by reducing support for public institutions of higher education, creating barriers for students pursuing advanced training, and worsening workforce shortages in critical professions. The complaint notes that these impacts could be particularly significant in fields such as healthcare, where states already face ongoing workforce challenges. 

The lawsuit also challenges provisions that limit protections for students already enrolled in programs. The statute includes a grandfathering provision that delays implementation of the loan caps for currently enrolled students. Under the rule, however, some students who transfer institutions or temporarily withdraw and later return to their programs could lose eligibility for grandfathering, creating additional financial barriers. 

Joining AG Campbell in filing this lawsuit, are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawai‘i, Illinois, Maine, Maryland, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Virginia, Washington and Wisconsin, as well as the governors of Kentucky and Pennsylvania in filing the lawsuit. 

###