A coalition of 25 Democrat-led states and D.C. sued the Education Department over new graduate student loan limits.

•� � The rules, taking effect July 1 under the One Big Beautiful Bill, place new borrowing caps on professional and graduate programs.

•� � States argue the changes could push students toward private loans, delay degrees and worsen healthcare worker shortages.

•� � New York AG Letitia James said the restrictions could shut students out of critical professions and leave communities with fewer healthcare providers.