California, other states sue Trump's new loan limits for nurses, PAs, therapists
California and a coalition of other Democratic-led states are suing the Trump administration over new limits on federal loans for aspiring nurses, physician assistants, therapists, social workers, mental health and other health workers, arguing that the changes will further reduce struggling but essential workers.
“This case is about protecting access to education, protecting our healthcare workers, and protecting the patients who rely on these providers every day,” California Atty. Gen. Rob Bonta said during a press conference on Tuesday. “The Trump administration is doing everything in its power to make it harder and more expensive for students to pursue the advanced degrees needed to serve their communities and pursue meaningful jobs that allow them to support themselves and their families.”
Bonta said the new restrictions on student loans for nurses and other healthcare students – initiated by the US Department of Education in response to Republicans who passed a comprehensive student loan bill as part of last year's One Big Beautiful Bill Act – are an illegal overreach by an agency that was “too short-sighted” and exceeded the legal limit.
“Congress can work,” he said. “But what the Department of Education cannot do—which is illegal and unreasonable and in violation of the Administrative Procedure Act—is redefining what a qualified student is.”
In response to the lawsuit, Trump administration officials defended the new rules, saying they would help student borrowers in the long run by lowering tuition costs at universities nationwide and preventing them from taking on more debt.
“After decades of unscrutinized student loans giving schools an excuse to control costs, these commonsense loan funds — created by Congress — are already encouraging colleges and universities to cut tuition,” Education Secretary Nicholas Kent said in a statement to The Times.
Kent said Bonta and his Democratic co-defendants are “more concerned about the institutional foundation.” [than] America's students and families' ability to access affordable postsecondary education.” As one example of institutions responding to loan rates by lowering costs, Kent pointed to UC Irvine lowering the cost of its master's in business programs by up to 38% to keep it below the federal loan rate for such programs.
The One Big Beautiful Bill, passed by Congress in July 2025, placed new limits on student loans, which could be required for the full cost of these degrees. Starting this July, applicants classified as “graduate students” will be allowed to borrow up to $20,500 per year and $100,000 in total, while applicants classified as “professional students” will be allowed to borrow up to $50,000 per year and $200,000 in total.
On May 1, the US Department of Education issued a new law that defines the category of “qualified students” as including those pursuing degrees as doctors, pharmacists, dentists, veterinarians, lawyers, various medical professionals, pastors and other religious scholars, excluding those pursuing nursing and other advanced health care degrees.
In announcing the change, Kent said it will “simplify our student loan repayment system and better target higher education and workforce needs,” “advance reform in higher education by holding universities accountable for results and putting greater pressure on tuition,” and “benefit borrowers who will no longer be thrown into unpayable debt.”
Others strongly disagree, including health care industry leaders who also opposed the rule change during public comment. Some say the changes will only increase students' reliance on nonperforming, private sector loans.
The American Assn. of the College of Nursing, in a statement, said they and their members are “angry about the failure of the Department of Education to support the nursing profession as the need for patient care grows.”
About 150 members of Congress – including more than a dozen Republicans – wrote a letter a day after the legislation was announced expressing “disappointment” at the exclusion of post-baccalaureate nursing degrees.
“At a time when our nation is facing a health shortage, especially in health care facilities, now is not the time to cut off the pipeline of students from these programs,” argued the lawyers.
Rachel Zaentz, a spokeswoman for the University of California, which is not involved in the lawsuit but works with a number of public health programs, said in a statement Tuesday that the UC “strongly opposes” the administration's new loan rules for nurses and other health professionals, which she said “will be felt most by low-income students.”
“UC will continue to do everything we can to ensure that cost is not an obstacle for anyone who wants to pursue higher education, and we will continue to stand up to our state partners with programs and policies that make this possible,” said Zaentz.
Bonta dismissed the administration's argument that the new caps will help students pursuing the dream of a doctorate career avoid taking on more debt – calling it “tone deaf.” He said those students are already “struggling with all the costs right now” because of the Trump administration's tariffs, the war on Iran and the despicable way in which foreign governments and other big businesses are being controlled.
He also rejected the idea that the new loan rates would force institutions to lower student costs, 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 US District Court in Maryland – were the attorneys general of Arizona, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Kentucky, Rhode Island, Vermont, Pennsylvania, Vermont, Pennsylvania and Washington.
Times staff writer Jaweed Kaleem contributed to this report.
