20 states sue the ED over new loan limits.
From Politico: Link to actual lawsuit at bottom.
At this time this doesn't change anything at all. The new loan limit regulations are still active. But the plaintiffs do ask for an injunction so it's not impossible that this implementation could be paused.
There's nothing here about repayment plans, or SAVE or PSLF. Just the new loan limits.
" More than 20 states filed a lawsuit against the Education Department on Tuesday over its limits on what fields will be eligible for higher loan caps put on graduate professional degrees. Congress capped federal loans for graduate students at $20,500 per year with a $100,000 aggregate limit in the GOP's sweeping domestic policy law last year. Students in professional programs can take up to $50,000 in federal student loans per year with a $200,000 aggregate limit. These limits go into effect July 1. It was up to the Education Department to define which students would qualify as professionals eligible for the higher cap. The agency finalized a rule in April that designated 11 fields as professional, including medicine, law, dentistry and theology — an approach that drew sharp criticism for excluding nursing and other professions from eligibility for the higher loan limits. The lawsuit, filed in the U.S. District Court of Maryland, asks the court to block the parts of the rule the states are challenging. The attorneys general argue that the definition the department put in place is too “narrow” and Congress did not intend to limit professions eligible for the higher limits in that way. They also say the caps will force many students, particularly those in critical health care fields that face shortages, to rely on more expensive private loans, take on higher levels of debt, delay completing their education or abandon these programs altogether. “You should not have to be wealthy to serve your community as a nurse, physical therapist, or physician assistant,” New York Attorney General Letitia James said in a statement. “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 health care providers they desperately need. We cannot afford fewer nurses, fewer providers, or fewer opportunities for working people to enter these essential fields.” Education Undersecretary Nicholas Kent said the caps are legal and will drive down the cost of college. "After decades of unchecked student loan borrowing that gave schools no reason to control costs, these commonsense loan caps – created by Congress – are already incentivizing colleges and universities to lower tuition," Kent said in a statement. "Clearly, these Democratic governors and attorneys general are more concerned about institutions’ bottom-line rather than American students and families’ ability to access affordable postsecondary education.” In addition to New York, the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Rhode Island, Oregon, Vermont, Virginia, Washington, Wisconsin, and the governors of Kentucky and Pennsylvania, joined the suit.
Link to court filing. https://ag.ny.gov/sites/default/files/court-filings/state-of-maryland-et-al-v-united-states-of-education-linda-mcmahon-court-filing-2026.pdf