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Coalition challenges unlawful rule that could restrict access to advanced education and worsen workforce shortages
LANSING — Michigan Attorney General Dana Nessel today joined a coalition of attorneys general in filing a lawsuit against the U.S. Department of Education (PDF) 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.
“Without federal loan programs, many students simply cannot afford to earn professional degrees,” said Attorney General Nessel. “Our state is already facing a shortage of nurses and other essential healthcare professionals. This unlawful overreach by the Trump administration will only worsen this crisis. My office will not stand by while the Department of Education illegally shuts the door on Michigan students or jeopardizes the well-being of our communities.”
“Michiganders should be able to pursue a good-paying career, like nursing, without breaking the bank from crippling student loan debt,” said Governor Whitmer. “That’s why Michigan is joining over a dozen other states in suing the U.S. Department of Education for their new rule that removes a host of graduate programs, including certain nursing programs, from the 'professional degree' definition and limits their federal student loan opportunities. At a time when the federal government is making dangerous cuts to our nation's health care system, we need to grow our health care workforce instead of creating barriers for the professionals Michiganders rely on for high quality care. I’ll keep working hard to grow opportunity and help more working families ‘make it’ in Michigan.”
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. Michigan ranks among the top 10 states with the largest projected nursing shortages through 2036 (PDF).
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, students who transfer institutions or temporarily withdraw and later return to their programs could lose eligibility for grandfathering, creating additional financial barriers.
Attorney General Nessel and Governor Whitmer are joined by the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawai‘i, Illinois, Maine, Maryland, Massachusetts, 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.
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