A number of medical organizations are taking legal action against the U.S. Department of Education regarding its new student loan limitations, even though these loans are often cited as a factor in skyrocketing tuition fees, which can reach nearly six figures.
The Pennsylvania Education Association (PAEA) and the American Academy of Physician Assistants (AAPA) filed a lawsuit last Wednesday to challenge the new Reimagining and Improving Student Education (RISE) rule, as noted in a press release from PAEA.
AAPA and PAEA have not yet responded to requests for comment from the Daily Caller News Foundation.
Under the RISE rule, starting July 1, the maximum annual federal loan amount for graduate students is set at $20,500. This is achieved by maintaining the current cap on Direct Unsubsidized Loans while eliminating Graduate PLUS Loans, which cover the remaining costs of attendance not addressed by Direct Unsubsidized Loans.
Additionally, RISE imposes a borrowing limit of $50,000 for specific professional degree programs—like law, medicine, and theology—without including physician assistants or nurses in this category, according to the Department of Education.
Previously, a similar legal challenge was posed against RISE by the American Nursing Association (ANA) and several nursing organizations on May 29, as indicated in an ANA press release.
PAEA CEO Sara Fletcher expressed in the press release, “PA students are getting ready to serve patients in communities nationwide. We are advocating for educational opportunities, the integrity of the law, and the future healthcare workforce that countless patients will depend on.”
According to PAEA, over 75% of physician assistant students needed federal loans exceeding the $20,500 threshold during the 2023-2024 academic year.
In a past report, PAEA mentioned that the average cost for a 27-month physician assistant program was around $98,075 for residents and $107,288 for non-residents in 2026, based on data from International Medical Aid.
Since the 1980s, college tuition has surged by over 900%, as per information from J.P. Morgan. The U.S. Department of Education began its operations in 1980.
U.S. Under Secretary of Education Nicholas Kent stated that RISE aims to enhance students’ access to higher education without incurring crippling loan debt and to provide repayment options that better accommodate borrowers. He emphasized that more funds in the educational system typically result in increased tuition prices.
“For two decades, institutions of higher learning have been able to charge almost unlimited tuition, even while many borrowers see little return on their investment. Tuition rates have outpaced the growth of any other household expense, with 71% of graduates in debt delaying major life decisions, all while universities profit greatly at the expense of young Americans’ financial futures,” said Ellen Keast, press secretary for the U.S. Department of Education.
“The Trump Administration aims to rectify this persistent inequity by dismantling a system that led students into debt they often couldn’t pay off while also promoting access to quality education that prioritizes students over institutional profits,” she added.
