President Trump's Student Loan Caps Face Legal Challenge from 25 States
President Donald Trump's administration is facing a lawsuit from 25 Democratic-led states challenging new student loan borrowing caps. The lawsuit, filed against the Department of Education and its leader, Linda McMahon, argues that the caps exceed the department's authority and contradict congressional intent. The legislation, set to take effect on July 1, imposes a $100,000 lifetime borrowing cap on graduate students and a $200,000 cap on 'professional' degree students, excluding advanced nursing degrees. Critics argue that the narrow definition of 'professional' could exacerbate the healthcare worker shortage and push students towards more expensive private loans. New York Attorney General Letitia James emphasized the potential negative impact on healthcare access, while the Department of Education claims the caps are already prompting schools to lower tuition.