States sue over graduate loan caps, warning healthcare shortages could worsen

A coalition of 25 Democratic-led states and the District of Columbia sued the Education Department over new graduate student loan caps, arguing the limits will worsen the health care workforce shortage. They contend the department overstepped its authority by applying a narrow definition of “professional degrees,” which could push students toward private loans or force them to delay or abandon advanced training. The Education Department defends the caps as a means to lower costs and incentivize lower tuition, while critics note nursing and other fields are affected, and some lawmakers seek to overturn the rule via the Congressional Review Act.