25 states and DC sue Education Department over loan limits, citing health system strain
Max Rego
May 19, 2026
Democratic attorneys general in more than 20 states and Washington, D.C., on Tuesday filed suit against the Education Department over new limits set to go into effect for graduate student loan borrowers.
The lawsuit, filed in U.S. District Court in Maryland, states that the new limits will strain the healthcare workforce by discouraging students from pursuing degrees in the medical field.
Starting on July 1, graduate students can borrow up to $20,500 in federal loans annually and $100,000 in aggregate under the One Big Beautiful Bill Act, which President Trump signed into law last July. Professional students, meanwhile, will be able to borrow up to $50,000 annually and $200,000 in aggregate under the law.
The Education Department will also begin phasing out the Graduate PLUS program in July, which is unsubsidized and has no annual or aggregate limits.
