Maryland AG Joins Lawsuit Over Federal Student Loan Limits

Maryland Attorney General Anthony Brown is joining a coalition of 24 attorneys general, along with the governors of Kentucky and Pennsylvania, in a lawsuit challenging a newly finalized rule from the U.S. Department of Education that could limit federal student loan access for students pursuing professional degree programs, FOX Baltimore reports.

The lawsuit, filed Monday, May 19, in the U.S. District Court for the District of Maryland, argues the new rule unfairly restricts financial aid eligibility for students in health care and other high-demand career fields.

According to the coalition, the Department of Education narrowed the federal definition of a “professional degree” and added requirements that were never approved by Congress. The lawsuit claims the changes could prevent many students from qualifying for higher federal loan limits while pursuing advanced degrees.

“This unlawful rule doesn’t just limit loans for graduate students, it limits students’ futures,” Brown said in a press release. “By capping loan amounts, the Trump Administration will force Marylanders who want to be nurses, physician assistants, or physical therapists to decide between taking on more expensive private loans or walking away from their chosen career. We will not allow this Administration to price our future healthcare professionals out of the workforce.”

The dispute stems from legislation passed by Congress in July 2025 that introduced new borrowing caps for graduate and professional students. While Congress relied on an existing federal definition of “professional degree,” the coalition argues the Department of Education improperly changed that definition by narrowing which programs qualify.

State leaders say the rule could create major financial barriers for students, hurt public colleges and universities, and worsen workforce shortages in critical industries like health care.

The lawsuit specifically points to the University of Maryland School of Nursing in Baltimore, where an entry-level Master of Science in Nursing program would reportedly no longer qualify as a professional degree under the department’s interpretation.

As a result, students in the program would only be eligible to borrow up to $20,500 annually in federal loans, roughly $29,500 less than students enrolled in programs classified as professional degrees. The coalition warns many students may struggle to make up the difference through private lending options.

The lawsuit also challenges how the rule impacts current students. Although the law included a grandfathering provision meant to protect students already enrolled, the coalition argues the rule could strip protections from students who transfer schools or temporarily leave and later return to their programs.

Maryland Joins Lawsuit Challenging Student Loan Restrictions For Graduate Programs was originally published on 92q.com