Attorney General Mayes Sues U.S. Department of Education Over Student Loan Rule Limiting Access to Student Loans for Professional Degree Programs

PHOENIX — Attorney General Kris Mayes today joined a coalition of attorneys general in suing the U.S. Department of Education over a new rule that unlawfully limits access to federal student loans for students pursuing professional degree programs, including many healthcare and other critical workforce fields.

The lawsuit challenges a recently finalized Department of Education rule that narrows the federal definition of "professional degree" and imposes restrictions Congress did not authorize. The coalition argues the rule unlawfully excludes many degree programs that qualify under the standards established by federal law, potentially reducing access to financial aid for students pursuing advanced education.

"Arizona is already facing a serious healthcare workforce shortage, particularly in rural communities,” said Attorney General Mayes. “This unlawful rule would make that crisis worse by putting professional degree programs out of financial reach for Arizona students who are working hard to fill those gaps."

In July 2025, Congress passed legislation imposing new limits on federal student loans for graduate and professional students. The new limits are lower for graduate students than for professional degree students; to distinguish the two, Congress incorporated an existing federal definition of "professional degree" into law. The lawsuit alleges that the Department of Education unlawfully altered that definition by adding new requirements and narrowing eligibility in ways Congress never authorized.

The coalition argues the rule could harm states by reducing support for public institutions of higher education, creating barriers for students pursuing advanced training, and worsening workforce shortages in critical professions. Arizona already faces significant healthcare workforce shortages, particularly in rural and underserved communities.

The lawsuit also challenges provisions that limit protections for students already enrolled in programs. The statute includes a grandfathering provision that delays implementation of the loan caps for currently enrolled students. Under the rule, however, some students who transfer institutions or temporarily withdraw and later return to their programs could lose eligibility for grandfathering, creating additional financial barriers.

The coalition filed the lawsuit in the U.S. District Court for the District of Maryland.

The lawsuit is being co-led by Colorado Attorney General Phil Weiser, Maryland Attorney General Anthony G. Brown, Nevada Attorney General Aaron D. Ford, and New York Attorney General Letitia James. Attorney General Mayes is joining the co-lead states and the attorneys general of California, Colorado, Connecticut, Delaware, the District of Columbia, Hawai'i, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Virginia, Washington, and Wisconsin, as well as the governors of Kentucky and Pennsylvania in filing the lawsuit.

A copy of the complaint is available.