The Education Department has defended loan caps on student loans, saying they already incentivize colleges and universities to lower tuition.
WASHINGTON — A Democratic-led coalition of states is challenging recent Trump administration policies Federal student loan capsarguing that the restrictions will make it more difficult for students pursuing certain health care degrees to obtain necessary training and education.
In the lawsuit filed Tuesday, plaintiffs representing 24 states and the District of Columbia argue that the Trump administration’s rules will disproportionately impact critical health care industries.
“This rule will keep talent out of critical occupations and leave communities with fewer health care providers that they desperately need,” New York Attorney General Letitia James said in a written statement. “We cannot afford to have fewer nurses, fewer providers, or fewer working people with access to these important fields.”
Education Department defends loan caps student loanssay they are already incentivizing colleges and universities to lower tuition.
“It is clear that these Democratic governors and attorneys general care more about their institutions’ bottom lines than the ability of American students and families to obtain affordable higher education,” Nicholas Kent, deputy secretary of the Department of Education, said in a written statement.
In 2025, Congress passed a beautiful big billenacted new federal student loan caps. Loans are capped at $100,000 for programs designated as “graduate” and $200,000 for professional degrees.
Previously, graduate students could apply for loans up to the cost of their degree. The new loan cap will take effect in July.
The Department of Education defines professional degrees as including pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathy, podiatry and theology.
But other health care fields, such as nursing, physical therapy, dental hygiene, social work and occupational therapy, are not included in the definition. Other fields that require certification and licensing, such as accounting and education, are also excluded.
The changes sparked anger and frustration among left-out health care sectors department. Supporters say the impact will be felt in communities that need health care providers the most.
“This rule will be reflected in real-world communities, such as in rural areas where nurse practitioners, midwives and nurse anesthetists are often the only providers of core nursing services,” American Nurses Association President Jennifer Mensick Kennedy said in a statement when the final rule was adopted last month.
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