Oregon Fights Student Loan Rule That Could Worsen Health Care Worker Shortages

The Education Department’s new rules that limit student loans- the subject of a lawsuit- are being vigorously challenged by Oregon, where health care and social assistance workers made up nearly one-third of all job vacancies in 2024. The new rules exacerbate the state’s existing shortage of health care workers.

Lawsuit Challenges ED’s Student Loan Rules Affecting Health Care Workers

According to state data, health care and social assistance accounted for 32% of all Oregon job vacancies in 2024, totaling 18,200 openings at any given time. Registered nurses were among the jobs with the most difficult-to-fill vacancies.

In July 2025, congressional legislation established lower annual federal loan caps for standard graduate programs than for professional ones. To differentiate them, Congress used a pre-existing statutory definition.

The Education Department subsequently altered this definition- allegedly unlawfully, according to the complainants in a lawsuit- by adding unauthorized restrictions.

This narrowing means fields such as advanced nursing, physical therapy, occupational therapy, and social work face lower funding caps, potentially making these programs financially inaccessible.

The Oregon DOJ has now joined a multistate coalition in a complaint against the ED in the U.S. District Court for the District of Maryland, as Oregon nursing, occupational therapy, physical therapy, and social work programs could be affected by the new loan limits.

AG Rayfield said, “This is yet another example of this administration building an economy that simply does not work for people.” He highlighted that Oregon is already experiencing significant shortages of critical healthcare workers. He warns that the rule will worsen workforce shortages.

The suit challenges the newly finalized rule that directly affects the ability of new entrants to the health care field and those seeking advancement to access sufficient student loans to finance their studies.

The coalition argues that the Department of Education unlawfully altered the definition by adding new requirements and narrowing eligibility in ways Congress never authorized.