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Trump's student-loan repayment overhaul faces a new lawsuit from the biggest public service and healthcare unions

  • A coalition of major unions (AFSCME, AFT, National Nurses United, AFL-CIO) sued to block the Education Department's student-loan rule, saying the administration broke procedure and the change will hurt public-service workers.
  • The rule sets $100,000 lifetime caps for graduate borrowers and $200,000 for certain professional degrees, and attempted to sharply narrow which programs qualify; a court blocked that narrowed definition but the interim list still leaves out fields like social work, education, and public health.
  • Litigation over the caps and related Biden-era borrower protections is ongoing, with unions warning the policy could worsen staffing shortages in critical public-service careers.
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