Business Insider·3 min read·medium

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

Trump's student-loan repayment overhaul faces a new lawsuit from the biggest public service and healthcare unions
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A coalition of major labor unions has filed a lawsuit against the U.S. Department of Education to challenge new student-loan borrowing caps. The unions argue that the administration's narrowed definition of professional degrees violates legal procedures and threatens to worsen staffing shortages in public service sectors.

A coalition of unions filed a lawsuit challenging President Donald Trump's student-loan borrowing caps. Bonnie Cash/UPI/Bloomberg via Getty Images A coalition of unions filed a lawsuit seeking to block Trump's student-loan changes. They said the administration violated legal procedure with its narrowed professional degree definition. Subsequent litigation challenging the Education Department's borrowing caps is ongoing. President Donald Trump's student-loan changes are facing another legal battle. On Tuesday, a coalition of unions filed a lawsuit against the Department of Education seeking to block Trump's new student-loan changes, including its narrowed definition of professional degrees. The suit argues that the administration violated administrative procedure in its rule and that it will harm public service professions. The coalition includes the American Federation of State, County, and Municipal Employees, American Federation of Teachers, National Nurses United, and the AFL-CIO. On July 1, the Education Department rolled out a $100,000 lifetime borrowing cap for graduate students and a $200,000 lifetime cap for professional students. It also proposed a narrower definition of a professional degree, capping the higher cap at 11 programs. A court blocked the narrowed definition from taking effect, and the department put out a revised list of programs that would qualify for the higher cap while the litigation progresses. However, the new lawsuit said that this interim list still excludes professions like master's degrees in social work, education, and public health, thus "exacerbating short-staffing crises in many bona fide professions." "We are already facing staffing crises in too many public service professions, and this rule threatens to make the situation even more dire," Lee Saunders, AFSCME's president, said in a statement. "The court must strike down this illegal rule to protect quality patient care, social services and public health, and ensure that workers aren't priced out of these critical public service professions." The Education Department did not immediately respond to a request for comment from Business Insider. It said alongside its updated list of professional degrees that it was confident that its definition is "lawful and will continue to defend it." This lawsuit joins other legal challenges against the administration's student-loan changes. Ongoing cases include those challenging the professional degree definition and one seeking to prevent the involuntary transfer of borrowers of the Biden-era SAVE plan. Have a story to share about student loans? Contact this reporter at asheffey@businessinsider.com . Read the original article on Business Insider

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