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United States·Trade & Economy

Democratic-led states sue Trump administration over new federal student loan caps

Thursday, 21 May 2026, 06:31 · 1 min read

A coalition of 24 US states and the District of Columbia has filed a lawsuit challenging new federal student loan limits introduced under the One Big Beautiful Bill Act, passed by Congress in 2025. The caps restrict graduate students to borrowing $100,000 and professional degree students to $200,000 — down from previous limits tied to the full cost of a degree — with healthcare fields such as nursing, physical therapy, and social work excluded from the more generous professional degree category. Plaintiffs argue the restrictions will push talented workers out of critical healthcare professions, particularly in rural and underserved communities, while the Education Department contends the caps are already driving down tuition costs.

Sources
PBS NewsHourDemocratic-led states challenge the Trump administration's new caps on federal student loans ↗︎
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