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Lawsuit over federal student loan caps highlights impact on nursing shortage

CNBC · May 21, 2026, 2:47 PM · Also reported by 3 other sources

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  • A coalition of 25 states and the District of Columbia sued the Trump administration this week over the new limits on federal student loans.
  • "Higher education is expensive, and our health care system is already under immense strain," New York Attorney General Letitia James said in a statement on Tuesday announcing the lawsuit.

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A coalition of 25 states and the District of Columbia sued the Trump administration this week over the new limits on federal student loans. For students pursuing careers in healthcare fields, such as nursing, social work, physical therapy and occupational therapy, the lawsuit comes at a critical time, experts say.

Starting this year, the legislation established in President Donald Trump's One Big Beautiful Bill Act caps the amount of federal loans students can borrow for graduate school at $100,000 over a lifetime — and sets a lifetime loan limit of $200,000 for professional programs, such as medical, dental or law school, according to rules finalized by the U.S. Department of Education at the end of April.

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