Attorney General Kwame Raoul announced on May 19 that he has joined a coalition of states in filing a lawsuit against the U.S. Department of Education over a new rule that limits access to federal student loans for students pursuing professional degrees, including those in healthcare and other workforce fields.
The lawsuit is significant because it addresses concerns about access to higher education and the potential impact on workforce shortages in critical sectors such as nursing and physical therapy. The attorneys general argue that the new rule could force students into higher-interest private loans or prevent them from pursuing advanced degrees altogether.
“This rule will cut off access for many qualified students and will worsen nationwide labor shortages in vital fields, including nursing and physical therapy. Students interested in pursuing degrees in these critical professions will have to turn to higher-interest borrowing and risky loans, jeopardizing their future economic security,” Raoul said. “I join my fellow attorneys general in challenging this unlawful rule, and I remain committed to advocating for student borrowers in Illinois and across the country.”
According to the complaint filed by Raoul and other state attorneys general, Congress passed a law in July 2025 limiting how much students can borrow through federal student loans for graduate programs but set different caps for professional degree programs. The law provided examples such as medical or law degrees but did not limit eligibility only to those examples. The coalition argues that the Department of Education’s recent rule unlawfully narrows which programs qualify as “professional degrees,” excluding some degree programs that should be eligible under federal standards.
The lawsuit also challenges provisions affecting protections for current students. Under the new Department of Education rules, students who transfer institutions or temporarily withdraw may lose eligibility exemptions provided by Congress, creating additional financial barriers.
Raoul is joined by attorneys general from several states as well as governors from Kentucky and Pennsylvania. The Illinois Attorney General has advocated for vulnerable groups including workers, immigrants, seniors, handled thousands of consumer complaints each year, aimed to protect consumers while promoting safer communities, extended advocacy efforts statewide, partnered with law enforcement agencies supporting crime victims while promoting open government practices, and offered services such as complaint filing related to consumer fraud or civil rights according to the official website.
The outcome of this legal challenge could affect how future rules are written regarding educational funding at both state and national levels.
