24 States Sue Trump Administration Over Strict Student Loan Caps for Healthcare Workers
A group of 24 Democratic-led states and the District of Columbia has filed a lawsuit against the Trump administration over new federal student loan limits. The caps, set to begin in July, were introduced under the 2025 One Big Beautiful Bill Act. Critics argue they will block many students from pursuing careers in key healthcare fields.
Before the new rules, graduate students could borrow up to the full cost of their degree. Now, loans for most graduate programmes are limited to $100,000, while professional degrees—such as pharmacy, dentistry, and veterinary medicine—are capped at $200,000. Notably, nursing, physical therapy, and other healthcare fields are excluded from the higher threshold.
The Education Department claims the caps will push colleges to reduce tuition fees. Under Secretary Nicholas Kent accused the states of siding with institutions over students, arguing the policy improves affordability. But New York Attorney General Letitia James countered that the limits would prevent talented individuals from entering essential professions. She warned the restrictions could leave communities with fewer healthcare workers. The lawsuit asserts that the caps will hit critical healthcare sectors the hardest. Plaintiffs argue that without sufficient funding, many students will be unable to train for vital roles in medicine and public health.
The legal challenge comes as the loan caps are set to take effect in July. If upheld, the limits will reshape how graduate students fund their education. The outcome could also influence staffing levels in healthcare and other high-demand fields.
