California, other states sue over new Trump limits on loans for nurses, PAs, therapists
California and a coalition of other Democratic-led states are suing the Trump administration over new limits on federal borrowing by aspiring nurses, physician’s assistants, therapists, social workers, mental health practitioners and other healthcare workers, arguing the changes will further reduce a struggling but vital workforce.
“This case is about protecting access to education, protecting our healthcare workforce, and protecting patients who rely on these providers every single day,” California Atty. Gen. Rob Bonta said during a virtual news conference Tuesday. “The Trump administration is going out of its way to make it harder and more expensive for students to pursue the advanced degrees necessary to serve their communities and pursue meaningful careers that allow them to support themselves and their families.”
Bonta said the new limits on loans sought by nursing and other healthcare students — which the U.S. Department of Education initiated in response to Republicans passing broader student loan caps as part of last year’s One Big Beautiful Bill Act — was an illegal overreach by the agency that was “deeply shortsighted” and went beyond the scope of the legislation.
“Congress can act,” he said. “But what the Department of Education can’t do is — contrary to law and in an arbitrary and capricious way and in violation of the Administrative Procedure Act — redefine what a professional student is.”
In response to the litigation, Trump administration officials defended the new rules, saying they will help student borrowers in the long run by driving down schooling costs at universities nationwide and preventing them from taking on too much debt.
“After decades of unchecked student loan borrowing that gave schools no reason to control costs, these commonsense loan caps — created by Congress — are already incentivizing colleges and universities to lower tuition,” Under Secretary of Education Nicholas Kent said in a statement to The Times.
Kent said Bonta and his fellow Democratic litigants “are more concerned about institutions’ bottom-line [than] American students and families’ ability to access affordable postsecondary education.” As one example of institutions responding to loan caps by lowering costs, Kent pointed to UC Irvine reducing the costs of its master’s in business programs by up to 38% to keep them below a federal loan cap for such programs.
The One Big Beautiful Bill, passed by Congress in July 2025, placed new limits on student loans, which could previously be sought for the full cost of such degrees. Starting this July, applicants categorized as “graduate students” will be capped at borrowing $20,500 per year and $100,000 in total, while applicants categorized as “professional students” will be allowed to borrow up to $50,000 annually and $200,000 in total.
On May 1, the U.S. Department of Education issued a new rule defining the “professional student” category as including those pursuing degrees to become doctors, pharmacists, dentists, veterinarians, lawyers, various medical specialists, pastors and other religious academics, and excluding those pursuing nursing and other advanced healthcare degrees.
In announcing the change, Kent said it would “simplify our complex student loan repayment system and better align higher education with workforce needs,” “drive a sea change in higher education by holding universities accountable for outcomes and putting significant downward pressure on the cost of tuition,” and “benefit borrowers who will no longer be pushed into insurmountable debt to finance degrees that do not pay off.”
Others fiercely disagreed, including healthcare industry leaders who also had objected to the rule change during a public comment period. Some said the changes would simply increase student reliance on less favorable, private-sector loans.
The American Assn. of Colleges of Nursing, in a statement, said it and its members were “angered by the Department of Education’s failure to support the nursing profession as the demand for patient care services rises.”
Nearly 150 members of Congress — including more than a dozen Republicans — wrote a letter the day after the rule was promulgated expressing “disappointment” over the exclusion of post-baccalaureate nursing degrees.
“At a time when our nation is facing a health care shortage, especially in primary care, now is not the time to cut off the student pipeline to these programs,” the lawmakers argued.
Rachel Zaentz, a spokesperson for the University of California, which is not party to the lawsuit but operates a vast network of public health programs, said in a statement Tuesday that UC “strongly opposed” the administration’s new caps on federal loans for nurses and other health professionals, which she said “will be felt most strongly by lower-income graduate students.”
“UC will continue to do all we can to ensure that cost is not a barrier for anyone who wants to pursue higher education, and we will continue to advocate with our federal partners for the programs and policies that make this possible,” Zaentz said.
Bonta rejected the administration’s argument that the new caps would help students pursuing a dream of a medical career avoid taking on too much debt — calling it “tone deaf.” He said those students are already “struggling with all costs right now” thanks to the Trump administration’s tariffs, war in Iran and lax approach to regulating monopolies and other big business.
He also rejected the idea that the new loan caps would force institutions to reduce costs for students, calling that “wishful thinking.”
The lawsuit is the 68th filed by Bonta’s office against the second Trump administration. Joining Bonta in the lawsuit — which was filed in the U.S. District Court in Maryland — were the attorneys general of Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, 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.
Times staff writer Jaweed Kaleem contributed to this report.
