Vermont Attorney General Charity Clark joined a coalition of 24 attorneys general and two governors in submitting a comment letter on Mar. 2 opposing a proposed rule by the United States Department of Education that would limit federal student loans for graduate students in nursing, physician assistance, and other health-related fields.
The issue is significant because the proposed rule could worsen existing healthcare worker shortages by restricting access to education financing for essential professionals. The One Big Beautiful Bill Act (H.R. 1) currently limits federal student loans for most graduate students to $20,500 per year and $100,000 total. However, students pursuing certain “professional” degrees can borrow up to $50,000 annually and $200,000 overall.
Congress defined “professional degree” broadly but provided a list of ten examples such as medical and law degrees without making it exclusive. The Department’s proposed rule would instead make this list—and Clinical Psychology—exclusive so only those degrees qualify for higher loan amounts. Clark and the coalition said this approach excludes aspiring nurse practitioners, physician assistants, physical therapists, and other key health professionals from accessing necessary funding.
Clark said the Department’s interpretation violates federal law by turning an illustrative list into a strict limit: “The Department violated Congress’s clear intent by turning an illustrative list of degrees into a hard limit, leaving out nurses, physician assistants, and other essential health professionals who depend on these loans to access and complete their education.” She also noted that the original examples were created in the 1950s before many current health programs existed: “By freezing that list in place, the Department has ignored decades of change in health professions and excluded health professionals who clearly fall within Congress’s definition.”
Clark warned that Vermont already faces healthcare workforce shortages which could be exacerbated if students are unable to borrow enough to pay for programs like nursing or physical therapy. Students affected may have to seek private loans with worse terms or be priced out of higher education entirely.
The letter urges the Department of Education to abandon its narrow definition of “professional degree” in favor of one reflecting Congress’s broader intent.
