Jackson sues federal education agency over loan rule affecting health care workers
RALEIGH, N.C. — North Carolina Attorney General Jeff Jackson has sued the U.S. Department of Education over a federal rule he says would reduce loan access for students pursuing several health care professions.
The lawsuit challenges the department’s definition of “professional” degree programs under federal student loan rules. The North Carolina Department of Justice said the rule would exclude nurses, physician assistants, physical therapists, occupational therapists and audiologists from borrowing levels available to students in professional degree programs.
The rule is scheduled to take effect July 1.
Jackson’s office said the rule would be especially harmful in rural North Carolina, where many counties already face shortages of primary care providers. The Department of Justice said 93 of North Carolina’s 100 counties have a primary care shortage.
“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.”
According to the Department of Justice, Congress created a cap last year on how much students pursuing professional degrees can borrow from the federal government. Jackson’s lawsuit argues that Congress defined what counts as a professional degree and that the Department of Education unlawfully narrowed that definition through rulemaking.
Under the new rule, students pursuing programs such as nurse practitioner, physician assistant or physical therapy degrees would be limited to $20,500 per year in federal loans, according to Jackson’s office. The agency said many programs cost more than that, including graduate nursing programs that often exceed $30,000 a year before living expenses.
The lawsuit argues that the rule could force students to seek more expensive private loans or abandon programs needed to enter health care fields.
The Department of Justice said the rule also affects certified registered nurse anesthetists, who are required to complete doctoral-level training. The agency cited rural anesthesia access as one area that could be affected.
Several health care organizations and professionals backed the lawsuit in statements released by Jackson’s office.
Debra J. Barksdale, president of the American Academy of Nursing, said the rule would create barriers for nurses seeking advanced education and could affect care in underserved areas.
Chileatha Wynn, president-elect of the North Carolina Academy of Physician Associates, said protecting the physician assistant pipeline is important for meeting patient needs, particularly in states with broad provider shortages.
State Sen. Gale Adcock, a family nurse practitioner, said the rule would worsen existing health care workforce problems, especially in rural communities.
The lawsuit is part of a broader fight between states and the federal government over how recent student loan changes will be implemented. For North Carolina, Jackson’s office is framing the case as both a higher education funding issue and a rural health care access issue.
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.
