States sue over professional degree student loan limits
A coalition of 25 states has sued the U.S. Department of Education over new federal student loan limits for graduate and professional programs, arguing that the administration’s implementation unlawfully narrows which degrees qualify for higher borrowing caps and could restrict entry into regulated professions. Under the policy, students in designated professional degree programs may borrow up to higher federal limits, while most other graduate students face substantially lower caps; the lawsuit contends that the Department’s definition excludes many licensure-based healthcare and public service fields, including advanced nursing and allied health programs, despite congressional intent to support those pathways. States argue the changes could worsen workforce shortages, particularly in healthcare, by making advanced education less financially accessible and pushing students toward private lending. The dispute highlights how financing policy can directly affect professional pipelines and raises broader questions for regulatory and licensing systems about credential access, workforce planning, and the relationship between educational requirements and affordability.