As noted previously, the U.S. Department of Education (ED) in May published its Reimagining and Improving Student Education (RISE) Federal Student Loan Program Final Regulations creating a graduate student loan limit and a professional student loan limit effective July 1, 2026. There have been several major lawsuits challenging the Department of Education's RISE final rule since it was released this Spring. The first, filed by 25 states and the District of Columbia, challenges the ED’s professional degree definition and seeks permanent relief to the RISE final rules. The second lawsuit, filed by a coalition of health profession associations, seeks a permanent injunction to the RISE final rule, delaying the July 1, 2026, final implementation. A hearing for a preliminary injunction is scheduled for June 23.
Both lawsuits contend the agency exceeded its congressional authority under the Administrative Procedure Act by unlawfully narrowing the definition of "professional degrees" and reducing federal student loan limits for graduate programs. In addition, several nursing related groups jointly filed a lawsuit challenging the ED’s exclusion of advanced nursing degrees from the definition of “professional degree” programs.
Finally, the fiscal year 2027 House Labor, Health and Human Services, and Education funding bill
report includes language supported by a professional degree coalition that includes AHCA/NCAL. The language instructs the ED to provide a report to the Committees within 12 months following the completion of the 2027–2028 academic year, on the implementation of the regulation and effects on programs and professions not designated as ‘‘professional.’’ The Senate version of the bill has not yet been released, and both the House and Senate must negotiate funding allocations before the bill reaches the President’s desk for signature.
AHCA/NCAL will continue to provide relevant updates on this issue.