On August 11, 2026, four major labor unions — the AFL-CIO, AFSCME, the American Federation of Teachers, and National Nurses United — filed a federal lawsuit in Washington, D.C., challenging the Education Department's RISE rule. The lawsuit specifically targets the rule's definition of "professional degree," which caps federal borrowing for nursing, social work, teaching, and other public-service degrees at $20,500 per year and $100,000 lifetime — while law and medical students can borrow up to $50,000 per year and $200,000 total.

If you are planning to go back to school for nursing, social work, or teaching, how much you can borrow from the federal government is now the subject of three separate federal lawsuits. The newest one was filed three days ago, and it carries the weight of some of the largest labor organizations in the country.

What the RISE Rule Does

The RISE rule (Reimagining and Improving Student Education) took effect July 1, 2026. It created a two-tier federal loan system for graduate students under the One Big Beautiful Bill Act.

Students in 11 approved "professional degree" programs — medicine, law, dentistry, pharmacy, veterinary medicine, optometry, osteopathic medicine, podiatry, chiropractic, theology, and clinical psychology — can borrow up to $50,000 per year and $200,000 over their lifetime.1

Every other graduate program is capped at $20,500 per year and $100,000 total. That second tier covers nursing, social work, teaching, public health, physical therapy, architecture, and firefighting, among others.

The line between those two tiers is what each of the three lawsuits is fighting over.

What the Unions Are Arguing

The coalition filed suit on August 11 in the U.S. District Court for the District of Columbia. The plaintiffs are the AFL-CIO, AFSCME, the American Federation of Teachers, and National Nurses United.1

Their complaint centers on how the Education Department defined "professional degree." Congress created the two-tier system in the One Big Beautiful Bill Act but left the definition to be set by regulation. When the Department wrote the RISE rule, it used an existing federal three-part test — and then added requirements Congress had not included: programs had to be at least six years long and match specific classification codes. Those additions cut nurse practitioners, physician associates, physical therapists, and other licensed health fields out of the higher-tier caps.

The unions argue the Department acted outside its authority, failed to follow proper rulemaking procedures, and produced a definition that conflicts with what Congress wrote. They are asking the court to throw out the rule's professional degree definition.

AFT President Randi Weingarten said the rule "de-professionalizes nursing, architecture, social work, teaching and other careers, eviscerating education access for poor and working-class students."2

Under the RISE rule as currently written, nursing, social work, and teaching graduate students face a $20,500 annual federal loan cap and a $100,000 lifetime limit. A court has not blocked this for most programs. If your program costs more per year, federal loans alone will not cover it regardless of how the lawsuits eventually resolve.

This is the third major lawsuit challenging the RISE rule's professional degree definition.

The first was filed May 19 by a coalition of 25 states and the District of Columbia in federal court in Maryland. We covered that lawsuit and what it means for nursing and PA students.

The second challenge produced a concrete result: on June 24, a federal judge in Washington, D.C., issued a preliminary injunction blocking the Education Department from applying its narrower definition to nurse practitioners, physician associates, and certain other licensed health professions graduates. That gave some students a temporary path to the $50,000-per-year cap. We covered that court ruling in detail. A preliminary injunction is not a final ruling — it can be reversed, narrowed, or allowed to expire.

The August 11 union lawsuit is a separate case with different plaintiffs and a broader scope. It covers not just nursing and PA programs but also social work, teaching, and other public-service fields that were not specifically addressed in the June preliminary injunction.

Three lawsuits do not guarantee any of them succeed. Courts move slowly and can rule differently than expected. If you are starting a nursing or social work graduate program this fall, plan your budget using the current $20,500 annual cap. Treat any court relief as uncertain and find out today how to pay for graduate school beyond federal loans if the gap is significant.

Why the Unions Say This Goes Beyond Student Debt

The coalition described the RISE rule as hitting the most understaffed professions hardest. Nursing, social work, and teaching already have severe shortages. The union coalition argued that raising the financial barrier to entering those fields will compound those shortages — and that patient care and public services will suffer as a result.

AFSCME described the rule's professional degree definition as "unlawfully narrow" and inconsistent with congressional intent.

For a plain-language explanation of how the original nursing loan gap opened up, see our earlier post on the gap between nursing and law school loan limits.

What to Do Right Now

Know your actual cap. Under current law, non-professional graduate students can borrow a maximum of $20,500 per year in federal Direct Loans. If your program costs more, private loans or other funding sources would need to cover the gap.

Check whether the June injunction applies to you. The preliminary injunction from June 24 may protect certain nurse practitioner and physician associate students. Contact your school's financial aid office to find out how your specific program is being classified and what cap applies to you right now.

Compare your loan options carefully. Federal loans carry income-driven repayment protections and fixed interest rates that private loans do not. Before borrowing privately to fill a gap, review federal vs. private student loan differences and repayment plan options.

Do not wait on the courts. None of the three lawsuits has produced a final ruling. This fall's tuition bills will not pause for litigation. Build your budget around the current rules, and revisit if a court order changes the situation mid-year.

If you are still in the application stage, our guide to getting into nursing school covers what programs look for and how to plan your finances before you enroll.

Footnotes

  1. AFSCME. (2026, August 11). Coalition of Public Service and Health Care Unions Sue to Block New Department of Education Student Loan Rule That Will Hurt Patient Care and Worsen Staffing Crises. AFSCME. https://afscme.org/press/releases/coalition-of-public-service-and-health-care-unions-sue-to-block-new-department-of-education-student-loan-rule-that-will-hurt-patient-care-and-worsen-staffing-crises/ ↩ ↩2

  2. American Federation of Teachers. (2026, August 11). 'We Are Professionals': Coalition of Unions Sue to Block New Student Loan Rule That Will Hurt Patient Care and Worsen Staffing Crises. AFT. https://www.aft.org/press-release/we-are-professionals-coalition-unions-sue-block-new-student-loan-rule-will-hurt ↩