Unions Sue Over Redefined “Professional Degree” Rule

A coalition of major labor unions—including the American Federation of State, County and Municipal Employees (AFSCME), the American Federation of Teachers (AFT), National Nurses United and the AFL-CIO—filed a lawsuit on Tuesday challenging the Education Department’s narrowed definition of a “professional degree.” The suit argues that the rule could restrict access to graduate programs in education, social work and public health, worsening existing staffing shortages in those public-service fields.

Newsweek

The changes took effect on July 1, when the Trump administration’s student-loan overhaul imposed a $100,000 lifetime borrowing cap for most graduate students and a higher $200,000 cap for programs classified as professional degrees. The Department initially identified 11 programs eligible for the higher limit, then issued an interim list after a federal court blocked the original definition. Unions say the interim list still excludes master’s programs in social work, education and public health, effectively limiting eligibility for the $200,000 cap.

Newsweek

The Education Department affirmed confidence in its legal authority to define professional degrees under the new law.

Newsweek

• “A nursing student can technically qualify for $50k per year but get packaged at $20,500 because schools are told to use the lower cap to hedge against the ruling changing,” — Michael Ryan, finance expert and founder of MichaelRyanMoney — Michael Ryan, finance expert and founder of MichaelRyanMoney

Newsweek

• “It potentially forced students into fields that will require financing substantially more of their education outside the federal loan system. For borrowers and prospective students, the administration’s broader overhaul is one supporters believe will create tighter borrowing limits and will pressure universities to control tuition and prevent students from accumulating more and more debt,” — Alex Beene, financial literacy instructor at the University of Tennessee at Martin — Alex Beene, financial literacy instructor at the University of Tennessee at Martin

Newsweek

• “If there are indeed major staffing shortages and significant demand in areas such as social work, nursing, and education, shouldn’t the market increase salaries to attract workers into these professions?” — Kevin Thompson, CEO of 9i Capital Group and host of the 9innings podcast — Kevin Thompson, CEO of 9i Capital Group and host of the 9innings podcast

Newsweek

The lawsuit will move forward in federal court, joining other challenges to the administration’s borrowing caps and repayment reforms. A final ruling will determine whether additional graduate programs can qualify for the higher federal borrowing limit and whether the Department can maintain its narrower definition of professional degrees.

Newsweek