The U.S. Department of Education is facing a lawsuit from labor unions over its definition of a “professional” degree. The rule excludes graduate programs in education while allowing other fields to access higher federal student loan limits.
The American Federation of Teachers, American Federation of State, County and Municipal Employees, National Nurses United, and AFL-CIO filed the suit in the U.S. District Court for the District of Columbia on August 11. The groups argue the rule disproportionately harms students pursuing careers in teaching, nursing, and other public-service professions.
Loan limits cut in half for excluded fields
Students enrolled in programs classified as “professional” can borrow up to $200,000 in federal loans. Those in excluded programs—including education—are capped at $100,000. The unions claim this disparity will discourage students from entering fields already facing shortages, particularly in teaching.
The lawsuit challenges the Education Department’s Reimagining and Improving Student Education rule, which took effect this summer. The unions seek to block the rule and delay its implementation while legal challenges proceed.
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AFT President Randi Weingarten called the rule part of an “unlawful attack on college affordability.” She connected it to broader cuts in the 2017 tax bill, saying the policy limits access to higher education for low- and middle-income students.
Education Department defends its position
The agency argues its definition aligns with longstanding interpretations of the Higher Education Act. In its final rule, the department stated that advanced education degrees don’t require licensure or entry into a specific profession, disqualifying them from the “professional” designation.
Ellen Keast, the department’s press secretary for higher education, said the agency “is confident in its interpretation of the law” and prioritizes students over “institutions, unions, or special interests.”
A federal judge temporarily blocked the rule in June. The Education Department responded by expanding the list of professional degrees to include nursing, physical therapy, athletic training, and occupational therapy. Education programs, however, remain excluded.
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The unions warn the rule will worsen teacher shortages, reducing future membership for organizations like AFT. K-12 advocates share these concerns, saying the change could hinder recruitment and retention of school staff.
The case follows earlier legal challenges. The unions argue the department’s definition conflicts with Congress’ One Big Beautiful Bill Act and the Higher Education Act. The dispute arrives as student debt remains a key issue in national policy debates.
Supporters of the rule call it a necessary guardrail against excessive borrowing. Critics see it as a barrier to careers requiring advanced degrees but offering lower pay. The department insists the rule simply codifies existing policy rather than creating new restrictions.
With multiple lawsuits pending, the courts may decide the outcome.
