Twenty-five states and Washington, D.C., filed a lawsuit Tuesday against the U.S. Department of Education challenging new federal student loan limits for graduate degree programs.

The lawsuit was filed in U.S. District Court in Maryland by Democratic attorneys general from states including New York, Arizona, North Carolina, Kentucky, and Nevada. The legal challenge targets rules that restrict federal student loan amounts for graduate students pursuing degrees in nursing, physical therapy, and other healthcare fields.

The states argue that the new loan limits will strain healthcare systems by discouraging students from entering these professions. The restrictions are set to take effect for graduate student borrowers in affected programs.

The Education Department has not yet responded to the lawsuit. The new rules represent part of broader federal efforts to address student loan policies and educational financing.

The legal challenge highlights ongoing tensions between state and federal authorities over education policy, particularly regarding healthcare workforce development. The outcome could affect thousands of students pursuing graduate degrees in health-related fields across the participating states.