Arizona joins federal lawsuit against the U.S. Department of Education over student loan limits

Arizona is one of 26 states and jurisdictions suing the U.S. Department of Education over a rule that limits student loans for graduate students in multiple health care fields.

The Trump administration’s Department of Education finalized the rule May 1, implementing loan caps set by Congress in the One Big Beautiful Bill Act passed in July 2025. The caps limit graduate students to $20,500 annually and professional students to $50,000 annually.

The new rules also changed the language surrounding what is considered a “graduate” or “professional” program, placing more restrictions on professional programs.

The new guidelines require a professional program to be related to 11 core topics including pharmacy, medicine and dentistry, as well as generally being a doctorate degree.

The restrictions are set to begin on July 1.

Why is the Arizona Attorney General suing over the new rules?

The lawsuit claims the new restrictions leave out students who may have previously been considered professional students, limiting the financial aid they can receive.

“Defendants’ rule unlawfully adds criteria to that straightforward statutory definition and limits professional degrees to the illustrative list,” read the complaint.

The additional requirements would make it harder for Arizona students to enter the workforce, argues Arizona Attorney General Kris Mayes.

“Arizona is already facing a serious healthcare workforce shortage, particularly in rural communities,” Mayes said in a press release. “This unlawful rule would make that crisis worse by putting professional degree programs out of financial reach for Arizona students who are working hard to fill those gaps.”

This is Mayes’ 42nd lawsuit against the Trump administration.

Funding for this journalism is made possible by the Arizona Local News Foundation.

Related

AG Kris Mayes says state is 'close' to filing suit over Trump mail-in voting executive orderKris Mayes leads new lawsuit challenging RFK Jr.'s changes to childhood vaccine policiesArizona voters to choose Republican and Democratic nominees for top education positionFormer Mesa High School official claims that an inaccurate police report destroyed his careerFormer ASU President, who elevated university’s status, dies at 89Peoria Unified names new principal for school at center of teacher sex scandal