Attorney General sues federal education department over health care training loan rule
RALEIGH, N.C. — North Carolina Attorney General Jeff Jackson has joined a lawsuit against the U.S. Department of Education over a rule his office says would reduce federal borrowing access for students pursuing several health care graduate degrees.
Jackson announced the lawsuit May 19. The Department of Justice said the federal rule narrows the definition of a “professional” degree and excludes students in programs such as nursing, physician assistant studies, physical therapy, occupational therapy and audiology from borrowing what they need to complete their degrees.
The lawsuit argues that Congress established the definition of a professional degree and that the U.S. Department of Education is unlawfully attempting to rewrite it, according to the North Carolina Department of Justice.
“This isn’t just about a worker shortage, it’s a respect shortage,” Jackson said in the announcement. “Singling out nursing students and physician assistants for less financial aid is telling them the work they do isn’t important. That’s untrue and unfair. They are professionals under the law, and we’re going to court to make sure the Department of Education treats them that way.”
DOJ said Congress created a cap last year on how much students pursuing professional degrees can borrow from the federal government. The office said the new rule takes effect July 1 and would limit students pursuing nurse practitioner, physician assistant or physical therapy programs to $20,500 per year in federal loans.
The Attorney General’s Office said many of those programs cost more than that, with graduate nursing programs often costing more than $30,000 per year before living expenses. DOJ said affected students could have to use more expensive private loans or forgo the programs.
The office framed the rule as especially significant for rural North Carolina. DOJ said 93 of North Carolina’s 100 counties already have a primary care shortage and argued that reducing access to federal loans could further constrict the pipeline of health care providers.
The lawsuit is both a legal challenge and a health workforce story. It connects federal education policy to North Carolina’s rural health care access problems, particularly in counties already facing provider shortages.
The U.S. Department of Education’s position was not included in the North Carolina DOJ announcement. A full follow-up story should seek comment from the federal agency and identify the court where the lawsuit was filed, the other states involved and the specific rule or regulatory action being challenged.
Editor’s note: This article was drafted with the assistance of artificial intelligence and was reviewed and fact-checked by a member of the NC Political News editorial team before publication.
