Gov. Beshear, State Leaders Stand Up Against Federal Rule That Would Limit Student Loan Access for Health-Care Workers

Unlawful rule would make graduate degrees more expensive, fuel national health-care worker shortage

FRANKFORT, Ky. (March 2, 2026) - Gov. Andy Beshear joined 24 attorneys general and one other governor in submitting a letter to the U.S. Department of Education (ED) opposing a proposed rule under the One Big Beautiful Bill Act (H.R. 1 - 119th Congress) that would cap federal student loans for graduate students in nursing, physician assistance and other health fields - a change that could worsen health care shortages across the country.

"Health-care workers are heroes who save lives, and any American who chooses to pursue this noble career should feel they have options to do so," said Gov. Beshear. "Capping federal student loans would make graduate degrees more expensive and unattainable while also fueling the dangerous health care shortages across our country. This rule is unlawful, unnecessary and harmful to families and our communities - especially those in rural America who are already feeling the impacts of the 'big, ugly bill.'"

H.R. 1 newly limited the amount of federal student loans that graduate students can borrow to $20,500 each year, up to $100,000 total. Students pursuing "professional" degrees, however, are permitted to borrow up to $50,000 a year for a total $200,000. Congress broadly defined "professional degree" as any degree that "signifies both completion of the academic requirements for beginning practice in a given profession and a level of professional skill beyond that normally required for a bachelor's degree." Congress also provided a list of ten examples such as medical degrees and law degrees, but specified that "professional degree[s] . . . are not limited to" those examples. The proposed rule under H.R. 1 would take Congress's list of 10 examples, plus Clinical Psychology, and make it exclusive - meaning only students pursuing those degrees, and no others, would be eligible to borrow up to the higher loan amounts.

As Gov. Beshear and the coalition explain, that would exclude aspiring nurses, nurse practitioners, physician assistants, physical therapists and other professionals who are essential to states' health systems and economies. For nursing schools and other programs that exceeded the $20,500 annual cap, students would be forced to seek private loans on worse terms or be priced out of higher education entirely.

The coalition argues that the proposed rule violates federal law. ED 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. Notably, the list of examples was originally devised in the 1950s, long before graduate programs in nursing, physician assistance and physical therapy became common. By freezing that list in place, ED has ignored decades of change in health professions and excluded health professionals who clearly fall within Congress's definition.

Kentucky and other states are already facing health-care workforce shortages - and this rule would make things worse. Preventing students from borrowing the amounts needed to pay for programs such as nursing, physician assistance and physical therapy will result in a reduced supply of expert health-care workers.

The letter urges ED to abandon its narrow definition of "professional degree" and devise a broader one that encompasses the full spectrum of degrees intended by Congress.

Joining Gov. Beshear in submitting the comments are the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawai'i, Illinois, Maine, Massachusetts, Maryland, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Virginia, Washington and Wisconsin and the governor of Kansas.

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