Michigan joins lawsuit over federal student loan limits
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LANSING, Mich. (WILX) – Michigan is among a handful of Democratic-led states suing the U.S. Department of Education over Trump administration restrictions on federal student loans.
The states argue the new limits will make it more difficult for students to afford degrees in health care and other high-demand fields.
Congress approved the student loan caps in July 2025. Under the law, graduate students are limited to $100,000 in federal loans, while students pursuing professional degrees can borrow up to $200,000.
The lawsuit alleges the Department of Education unlawfully changed the definition of eligible programs by imposing new requirements and narrowing eligibility beyond what Congress authorized.
The Education Department has defended the caps, saying the policy is intended to help lower tuition costs at colleges and universities.
Michigan Gov. Gretchen Whitmer criticized the decision, saying, “Michiganders should be able to pursue a good-paying career, like nursing, without breaking the bank from crippling student loan debt.”
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