Lansing, Michigan – Michigan Attorney General Dana Nessel and Governor Gretchen Whitmer are taking the U.S. Department of Education to court over a new student loan rule they say could make it harder for students to enter key professional fields, including nursing and other healthcare careers.
Nessel joined a multistate coalition of attorneys general in filing a lawsuit challenging the Department’s recently finalized rule, which changes how “professional degree” programs are defined for federal student loan purposes.
The coalition argues the Department unlawfully narrowed that definition and added restrictions that Congress did not approve.
At the center of the dispute is federal legislation passed in July 2025 that placed new limits on loans for graduate and professional students.
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Under that law, graduate students face lower borrowing limits than students in professional degree programs. To separate the two categories, Congress relied on an existing federal definition of “professional degree.”
The lawsuit claims the Department of Education went beyond its authority by changing that definition and cutting out programs that should remain eligible under federal law.
“Without federal loan programs, many students simply cannot afford to earn professional degrees,” said Attorney General Nessel.
“Our state is already facing a shortage of nurses and other essential healthcare professionals. This unlawful overreach by the Trump administration will only worsen this crisis. My office will not stand by while the Department of Education illegally shuts the door on Michigan students or jeopardizes the well-being of our communities.”
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Whitmer also criticized the rule, saying it could block opportunity for students preparing for stable, needed careers.
“Michiganders should be able to pursue a good-paying career, like nursing, without breaking the bank from crippling student loan debt,” said Governor Whitmer.
“That’s why Michigan is joining over a dozen other states in suing the U.S. Department of Education for their new rule that removes a host of graduate programs, including certain nursing programs, from the ‘professional degree’ definition and limits their federal student loan opportunities. At a time when the federal government is making dangerous cuts to our nation’s health care system, we need to grow our health care workforce instead of creating barriers for the professionals Michiganders rely on for high quality care. I’ll keep working hard to grow opportunity and help more working families ‘make it’ in Michigan.”
The coalition says the rule could hurt public colleges and universities, reduce access to advanced training, and worsen workforce gaps in fields already under strain. Michigan, according to the complaint, ranks among the top 10 states with the largest projected nursing shortages through 2036.
The lawsuit also challenges how the rule treats students already enrolled in affected programs. While the law includes a grandfathering provision delaying loan caps for current students, the Department’s rule could remove those protections for students who transfer schools or temporarily withdraw before returning.
Nessel and Whitmer are joined by attorneys general and governors from more than two dozen states and jurisdictions in the legal challenge.