RALEIGH, N.C. (WNCN) — Healthcare workers in North Carolina will not see a reduction in the amount of student loans they can borrow amid a lawsuit against the United States Department of Education to prevent such cuts, the attorney general’s office said Thursday.
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The Office of the North Carolina Attorney General announced legal action against the DOE in May over a rule that will prevent nurses, physician assistants, physical therapists, occupational therapists, and audiologists from borrowing more than $20,500 a year in federal loans by narrowing the definition of a “professional” degree.
According to the attorney general’s office, this amount of loans will not be enough to cover many healthcare programs, including graduate nursing programs that are usually more than $30,000 annually without factoring in living expenses.
The rule was scheduled to take effect on Wednesday, but according to the attorney general’s office, the DOE will not apply it after a court issued a preliminary stay in a related case.
The attorney general’s office said the stay will be in place until the case is resolved.
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Last year, according to the attorney general’s office, Congress passed a bill placing a limit on federal loans for graduate students at $20,500 annually and $100,000 total, while professional students would be able to receive $50,000 annually and $200,000 total in federal loans.
Congress did not change the definition of professional degrees, which includes advanced-practice nurses and other healthcare providers, according to state officials. Since the rule changes the bill’s definition of a professional degree, the attorney general’s office is arguing the DOE has violated federal law.
The lawsuit was filed in the United States District Court of Maryland against the DOE and Education Secretary Linda McMahon.
“Our fight is still ongoing, but this is good news for our nursing and healthcare students as they plan for their next school year,” North Carolina Attorney General Jeff Jackson said in a statement. “This is about making sure that North Carolina has the healthcare workforce it needs to take care of its people and we’re going to do everything we can to make that happen.”
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