Unions sue Education Department over RISE rule

August 12, 2026 - 04:29

A coalition of labor unions filed a federal lawsuit on Tuesday challenging the Department of Education's recent RISE rule, which caps federal student loan borrowing for programs in nursing, teaching, and several other fields. The lawsuit, brought by the American Federation of Teachers and the National Education Association, argues that the regulation exceeds the department's legal authority and will harm working-class students.

The RISE rule, which took effect on July 1, sets hard dollar limits on direct subsidized and unsubsidized loans for undergraduate degrees in specific disciplines. For example, nursing students can now borrow no more than $31,000 total, while education majors face a $28,500 cap. Previously, these loans were limited only by annual and aggregate federal thresholds, which for dependent undergraduates reached $31,000 for the first two years alone.

Union leaders say the caps will force students into private loans with higher interest rates and fewer repayment protections. "This rule punishes people who want to become teachers or nurses, exactly the professions we need most," said AFT president Randi Weingarten in a statement. The complaint also alleges that the department failed to conduct proper notice-and-comment rulemaking, skipping a required public comment period.

The Education Department has not yet responded to the filing. Legal experts note that the case could hinge on whether the Higher Education Act grants the secretary authority to set program-specific loan limits. A hearing is expected within the next two months.