Health worker shortage will worsen with federal loan limit, 25 states say in suit

Source: Washington Post

May 19, 2026 at 1:28 p.m. EDT


A coalition of 25 Democratic-led states and the District of Columbia sued the Education Department on Tuesday over new graduate student loan limits, arguing the restrictions will worsen the health care workforce shortage.
Get concise answers to your questions. Try Ask The Post AI.

“Higher education is expensive, and our health care system is already under immense strain. This rule will shut talented people out of critical professions and leave communities with fewer healthcare providers they desperately need,” New York Attorney General Letitia James, who is co-leading the coalition with Maryland, Nevada and Colorado, said in a statement.

The lawsuit, filed in federal court in Maryland, comes nearly three weeks after the Education Department finalized rules that lower the amount of money graduate students can borrow from the federal government. The rules, which take effect July 1, are a feature of the One Big Beautiful Bill that President Donald Trump signed into law last summer. They implement borrowing caps based on whether students are pursuing a degree in what is designated as a professional or graduate program.

Students in professional programs can borrow up to $50,000 a year and $200,000 total, while those in graduate programs will face annual limits of $20,500 and a lifetime limit of $100,000. The law listed examples of professional programs, including pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry and theology. Before now, all graduate students could borrow up to the full cost of attendance, which conservative lawmakers blamed for high program costs and high student debt.

Read more: https://www.washingtonpost.com/education/2026/05/19/health-worker-shortage-will-worsen-with-student-loan-limit-25-states-say-suit/