Attorney General Jeff Jackson announced on May 19 that he has filed a lawsuit against the U.S. Department of Education regarding a new rule affecting federal loan eligibility for certain healthcare degrees in North Carolina.
The issue is significant because the rule could limit access to education for nurses, physician assistants, and other healthcare professionals, potentially worsening the shortage of primary care providers across much of North Carolina. According to Jackson, “This isn’t just about a worker shortage – it’s a respect shortage. Singling out nursing students and physician assistants for less financial aid is telling them the work they do isn’t important. That’s untrue and unfair. They are professionals under the law, and we’re going to court to make sure the Department of Education treats them that way.”
The lawsuit argues that Congress established which degrees count as “professional”—including advanced-practice nurses and other providers—but that the new federal rule narrows this definition unlawfully. If implemented on July 1, students in affected fields would be restricted to $20,500 per year in federal loans even though program costs often exceed this amount. This change could force many students into more expensive private loans or cause them to abandon their studies altogether.
Healthcare leaders voiced concern about how these changes would impact patient care and workforce development in rural areas already facing shortages. American Academy of Nursing President Debra J. Barksdale said, “This rule will have far-reaching consequences for both patient care and the nursing workforce… It threatens access to care, particularly in areas that are underserved.” Chileatha Wynn from the North Carolina Academy of Physician Associates added: “Protecting the pipeline of this group of highly trained clinicians is critical to meeting the needs of patients – especially in states like North Carolina where the vast majority… live in a healthcare provider shortage area.”
Senator Gale Adcock noted potential long-term effects: “Primary care providers like NPs [nurse practitioners], PAs [physician assistants], and family physicians… are essential… The DoE rule removing post-graduate nursing programs from the professional degree category will worsen an already critical situation.” Dr. Tyler Shultz from APTA North Carolina said limiting loan access creates unnecessary barriers for future physical therapists entering a field with growing demand.
North Carolina faces ongoing challenges with too few healthcare workers—a problem compounded by an aging population and growth trends—as reported by the official website of the North Carolina State Executive Attorney General. The office provides legal representation statewide, assists law enforcement agencies, protects consumers’ rights, prosecutes criminal appeals, and handles regulatory matters on behalf of state residents.according to its official website
Jackson’s lawsuit is joined by attorneys general from several other states as well as governors from Kentucky and Pennsylvania.
