25 States Sue McMahon Over $20,500 Nursing Loan Cap

9 articles · Updated · The New York Times · May 19

A coalition of 25 states and the District of Columbia sued Education Secretary Linda McMahon in Maryland federal court, arguing her department unlawfully refused to classify nursing as a professional degree.
That classification subjects many graduate nursing students to a $20,500 annual federal loan cap instead of higher professional-program limits; the lawsuit says an entry-level M.S. in nursing averages $77,155 a year.
The states also challenge the department’s grandfathering policy, saying students who transfer schools or withdraw and re-enroll are wrongly excluded from protection under the new caps.
Supporters say the limits could pressure universities to lower tuition, while opponents argue they will push students toward private loans or deter advanced nursing study, worsening healthcare staffing shortages.
The Education Department says 95% of nursing students borrow less than the nonprofessional cap, framing the suit as a defense of institutional finances rather than student affordability.

Will capping student loans force universities to lower tuition, or push aspiring healthcare workers into riskier private debt?

As federal loans for healthcare degrees are cut, will America's critical worker shortage become a full-blown crisis?