New York Attorney General Letitia James announced on May 19 that she is co-leading a coalition of 24 states and the District of Columbia in a lawsuit against the Trump administration. The group seeks to block new federal rules that limit student loans for those pursuing degrees in health care fields such as nursing, physical therapy, and physician assistant studies.
The coalition argues that these restrictions will make it harder for students to afford education and clinical training needed for essential health care jobs. They warn this could worsen workforce shortages and reduce access to care across New York and the country.
“You should not have to be wealthy to serve your community as a nurse, physical therapist, or physician assistant,” said Attorney General James. “Higher education is expensive, and our health care system is already under immense strain. This rule will shut talented people out of critical professions and leave communities with fewer health care providers they desperately need. We cannot afford fewer nurses, fewer providers, or fewer opportunities for working people to enter these essential fields.”
Last year, Congress set higher federal loan limits—$100,000 for graduate programs and $200,000 for professional degree programs—using an existing definition of “professional degree.” However, in May 2026 the Department of Education issued a rule narrowing which programs qualify as professional degrees. As a result, many health-related programs are now subject only to lower annual loan caps.
James said this change means students may need private loans or face unsustainable debt loads if they wish to complete their training. The coalition also challenges new restrictions on protections Congress granted students already enrolled before changes take effect; under the rule some lose eligibility if they transfer schools or temporarily withdraw.
The attorneys general argue that the rule violates federal law by contradicting Congressional intent and being arbitrary. They are asking the court to block its implementation so students can access loans as originally intended by lawmakers.
Letitia James heads the New York Attorney General’s office—a public law enforcement agency that promotes social justice through civil rights enforcement and consumer advocacy; protects New Yorkers’ safety; upholds civil rights; preserves the environment; operates regional offices statewide; investigates consumer fraud; oversees charities; mediates tenant disputes; and addresses local legal issues across New York according to the official website.
