A coalition of 25 Democrat-led states and the District of Columbia sued the Education Department on Tuesday over new limits on federal graduate student loans, saying the restrictions could worsen shortages in the healthcare workforce.
The lawsuit, filed in federal court in Maryland and led by New York Attorney General Letitia James, challenges regulations finalized earlier this month that cap how much graduate students can borrow from the federal government beginning July 1, reports The Washington Post.
“Higher education is expensive, and our healthcare system is already under immense strain. This rule will shut talented people out of critical professions and leave communities with fewer healthcare providers they desperately need,” James said in a statement.
The borrowing limits stem from the One Big Beautiful Bill signed into law by President Donald Trump last summer.
Under the rules, students enrolled in programs designated as “professional” can borrow up to $50,000 annually and $200,000 total, while students in other graduate programs are limited to $20,500 per year and $100,000 over a lifetime.
The law lists pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, and theology among examples of professional programs.
