Jackson joins lawsuit challenging federal student loan rule for health care degrees
RALEIGH, N.C. — North Carolina Attorney General Jeff Jackson has joined a multistate lawsuit challenging a U.S. Department of Education rule that his office says would restrict federal loan access for students pursuing advanced health care degrees.
Jackson’s office announced the lawsuit Tuesday, saying the rule would exclude nurses, physician assistants, physical therapists, occupational therapists and audiologists from higher federal loan limits available to students in programs classified as professional degrees. The lawsuit argues the department unlawfully narrowed the definition of a professional degree beyond what Congress established.
“This isn’t just about a worker shortage — it’s a respect shortage,” Jackson said in a statement. “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 lawsuit comes as new federal loan caps are scheduled to take effect July 1. According to the North Carolina Department of Justice, federal loans for graduate students will be capped at $20,500 per year and $100,000 total, while federal loans for professional students will be capped at $50,000 per year and $200,000 total.
Jackson’s office said the rule could make it harder for students in several health care fields to afford graduate training. The DOJ announcement said students pursuing careers as nurse practitioners, physician assistants or physical therapists would be limited to $20,500 a year in federal loans, while many programs cost more than that before living expenses.
The lawsuit frames the issue as especially significant for rural North Carolina. Jackson’s office said 93 of the state’s 100 counties have a geographic or population Health Professional Shortage Area for primary care, and 54 of North Carolina’s 55 rural counties have primary care shortage areas.
The DOJ announcement said North Carolina has nearly 3 million residents living in rural areas and argued that nurse practitioners and physician assistants are important to filling gaps in primary care and rural health care access.
Several health care organizations and professionals were quoted in the DOJ announcement supporting the lawsuit. American Academy of Nursing President Debra J. Barksdale said the rule “will have far-reaching consequences for both patient care and the nursing workforce.” North Carolina Academy of Physician Associates President-Elect Chileatha Wynn said protecting the physician assistant pipeline is critical to meeting patient needs, especially in states with provider shortage areas.
State Sen. Gale Adcock, a family nurse practitioner, said in the DOJ announcement that removing post-graduate nursing programs from the professional degree category would worsen provider shortages.
“Primary care providers like NPs, PAs, and family physicians, particularly in rural communities, are essential to the health of North Carolinians of all ages,” Adcock said.
The lawsuit was filed by attorneys general from multiple states and the District of Columbia, along with the governors of Kentucky and Pennsylvania. North Carolina is represented by Jackson in the complaint.
The Department of Education’s response was not included in the North Carolina DOJ announcement. Reuters reported Tuesday that Education Secretary Nicholas Kent defended the policy as fiscally responsible, while the states argued the rule conflicts with federal law and would limit access to essential health professions.
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.
