Coalition of States Sues Education Department Over New Federal Graduate Student Loan Debt Caps

A coalition of twenty-five states filed a lawsuit challenging new federal loan caps that limit borrowing for graduate students while excluding several critical healthcare fields from professional degree status.Officials argue the policy exceeds federal authority and will deepen healthcare workforce shortages, while the Department of Education contends the caps encourage lower tuition costs.Bipartisan legislative efforts are currently underway to overturn these regulations as the July implementation deadline approaches.The suit claims the Department of Education violated the Administrative Procedure Act by arbitrarily defining which academic programs qualify for higher federal funding.
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