Attorney general sues federal education department over health care workforce loan rule
RALEIGH — North Carolina Attorney General Jeff Jackson has sued the U.S. Department of Education over a federal rule he says would limit borrowing options for students pursuing certain health care degrees and worsen workforce shortages in rural areas.
The lawsuit challenges a rule that Jackson’s office says narrows the definition of a “professional” degree. According to the Department of Justice, the rule would exclude nurses, physician assistants, physical therapists, occupational therapists and audiologists from borrowing under the same limits available to students pursuing degrees classified as professional.
The Department of Justice said the lawsuit argues Congress established the definition of a professional degree and that the Department of Education is illegally attempting to rewrite it. The federal rule is scheduled to take effect July 1.
“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.”
The Department of Justice said the rule would limit students pursuing nurse practitioner, physician assistant or physical therapy programs to $20,500 a year in federal loans. The agency said many of those programs cost more, with graduate nursing programs often exceeding $30,000 a year before living expenses.
Jackson’s office said North Carolina’s rural counties would be hit hardest. The agency said 93 of the state’s 100 counties already have a primary care shortage, and it argued the rule would further restrict the pipeline of health care providers.
The lawsuit places North Carolina in another legal dispute over federal policy affecting education and health care access. The Department of Justice framed the case as a workforce and rural health issue, while the final outcome will depend on how the court interprets the federal rule and Congress’ definition of professional degree programs.
The U.S. Department of Education’s response to the lawsuit was not included in the North Carolina Department of Justice announcement.
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.
