Attorney General Kwame Raoul has joined a coalition of state attorneys general in submitting a comment letter opposing a proposed rule by the U.S. Department of Education that would limit federal student loan access for graduate students in health care fields such as nursing and physician assistance. The coalition argues that the change could worsen existing shortages of health care workers across the country.
“This proposed rule will cut off access for many qualified students and will worsen nationwide labor shortages in vital fields, including nursing and education. Students may also turn to riskier and higher-interest borrowing,” Raoul said. “I join my fellow attorneys general in opposing this rule, and I remain committed to advocating for student borrowers in Illinois and across the country.”
The new federal budget reconciliation law limits graduate students’ federal student loans to $20,500 per year and $100,000 total. However, those pursuing “professional” degrees can borrow up to $50,000 annually with a $200,000 cap overall. Congress defined “professional degree” broadly but included a list of 10 examples such as medical and law degrees, specifying that the list was not exhaustive.
The Department of Education’s proposed rule would make this list exclusive—only allowing students pursuing those listed degrees or clinical psychology to be eligible for higher loan amounts. According to Raoul and other attorneys general, this move would exclude aspiring nurse practitioners, physician assistants, physical therapists, and others essential to state health systems.
For programs exceeding the $20,500 annual cap, many students may have to seek private loans with less favorable terms or might be unable to afford further education at all.
The coalition contends that the proposed rule violates federal law by ignoring Congress’ intent when it turned an illustrative list into a strict limit. They note that the original list dates back decades before graduate programs in nursing or physical therapy were common. By keeping this outdated list unchanged, they argue the department excludes professionals who meet Congress’ broader definition.
Raoul emphasized that restricting loan amounts could reduce the supply of skilled health care workers at a time when Illinois and other states face shortages. The letter urges the department to use a broader definition of “professional degree” consistent with Congressional intent.
Attorneys general from Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Maine, Massachusetts, Maryland, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Virginia Washington and Wisconsin joined Raoul in submitting comments. Governors from Kansas and Kentucky also participated.
The Illinois Attorney General’s office is known for advocating on behalf of vulnerable groups including workers and seniors (official website). It handles thousands of consumer complaints each year (official website) while working to protect consumers’ rights and promote safer communities (official website). The office extends its advocacy efforts statewide (official website), partners with law enforcement agencies (official website), and offers services such as complaint filing related to consumer fraud or civil rights issues (official website).