Healthcare groups sue Trump administration over new student loan limits

The groups sued over new student loan limits for some degrees in healthcare.

Two physician associate groups have sued the Trump administration over a federal rule limiting student loan borrowing for some graduate degree programs that impact healthcare professionals, including physician associates and assistants (PAs), nurse practitioners and other clinical providers.

The American Academy of Physician Associates (AAPA) and the Physician Associates Education Association (PAEA) filed a lawsuit aimed at reversing a Department of Education regulation that the plaintiffs claim violates the Administrative Procedure Act. They are separately requesting an emergency injunction that seeks to block the rule from taking effect for PA students on July 1.

The complaint also claims that the rule exceeds the Education Department's statutory jurisdiction and is therefore unlawful. The Government Accountability Office website said the Administrative Procedure Act prescribes the minimum procedural steps an agency must follow in its administrative proceedings.

The lawsuit alleges the Education Department overstepped its legal authority by disqualifying a PA degree from being categorized as a professional degree.

The new rule entitled the Reimagining and Improving Student Education-Federal Student Loan Program (RISE) -- which is based on an existing regulation -- finalized the definition of "professional" and "graduate" programs, restricting student loan borrowing limits to $200,000 and $100,000 total for professional and graduate degrees respectively. The $100,000 total cost for PA students is capped at $20,500 annually.

AAPA's CEO Lisa Gables said the rule will have "devastating consequences" for the PA workforce.

"PA programs meet every element of the professional degree definition that Congress established in law," Gables wrote in a statement. "They award entry-level master’s degrees, require rigorous clinical training, and lead to professional licensure in all 50 states."

She added, "We are in court to ensure the law is implemented as Congress intended."

According to the Education Department's final regulation, pharmacy and dentistry are among the list of eleven professional degree programs –- including medicine, law and clinical psychology degrees –- eligible for the $200,000 cap, but teaching, nursing, and physician associates are now capped at the lower limit.

The median PA program tuition is nearly $97,000 for residents before fees and additional costs, according to AAPA.

The recent move is drawing widespread concern from public service advocates as the he