Financial Aid Litigation
This web page is dedicated to tracking litigation that affects federal student aid, financial aid administration, and higher education policy. Each case includes a brief summary, regular status updates, and links to related coverage from Today's News.
Open Cases
AMERICAN ASSOCIATION OF NURSE PRACTITIONERS v. MCMAHON (1:26-cv-01780)
Topic: RISE Final Rule
Summary: Challenges how the Department of Education's RISE Final Rule defines "professional degree" programs for federal loan purposes.
Status: In process — Court granted temporary pause on June 25, 2026, on portions of the professional degree definition, causing ED to issue new guidance on what degrees are considered professional degrees. A final court ruling can be made at any time after December 4, 2026.
Today’s News Reporting
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- July 20, 2026: Court Sets Schedule for Professional Degree Definition Lawsuit, Case to Continue Through At Least December
- July 8, 2026: Parties Seek Extension in Professional Student Definition Lawsuit
- June 30, 2026: Following Legal Action, ED Temporarily Adds New CIP Codes Eligible for Professional Degree Designation, Removes Others
- June 25, 2026: Court Temporarily Pauses Key Parts of Professional Student Definition Days Before July 1 Effective Date
- June 24, 2026: Court Faces Pre-July 1 Deadline on RISE Final Rule Challenge
STATE OF MARYLAND v. UNITED STATES DEPARTMENT OF EDUCATION (1:26-cv-01957)
Topic: RISE Final Rule
Summary: A coalition of states challenging the same RISE Final Rule professional degree definition, arguing it improperly limits borrowing for students in certain graduate and professional programs.
Status: In process — Case will proceed through November 6, 2026, when briefing closes. A final court ruling can be made at any time after November 6, 2026.
Today’s News Reporting
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- July 31, 2026: Court Sets Schedule in State-Led Professional Degree Definition Lawsuit, Second Case Challenging RISE Rule
- June 24, 2026: Court Faces Pre-July 1 Deadline on RISE Final Rule Challenge
- May 20, 2026: Coalition of 25 States Sue ED Over OBBBA Loan Limits, Claim New Rule Will Worsen Workforce Shortages
Topic: RISE Final RuleSummary: A coalition of labor unions (AFL-CIO, AFSCME, AFT, and NNU) is challenging the Department of Education's RISE Final Rule, arguing its definition of "professional student" and its limits on the interim exception for borrowers.Status: In process — Case will proceed through January 8, 2027, when briefing closes. A final court ruling can be made at any time after January 8, 2027.
Today's News Reporting
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- August 17, 2026 - Third Lawsuit Challenges RISE Rule’s Professional Degree Definition
HAVENS v. US DEPARTMENT OF EDUCATION (1:26-cv-00816)
Topic: SAVE/REPAYE Repayment Plan
Summary: Borrowers arguing that the courts' rejection of the SAVE repayment plan should have automatically restored their access to the older REPAYE plan, and that the Department's refusal to do so is unlawful.
Status: In process — Briefing on the preliminary injunction and motion to dismiss is now complete. No ruling has been made.
Today’s News Reporting
COMMONWEALTH OF MASSACHUSETTS v. U.S. DEPARTMENT OF EDUCATION (1:25-cv-13244)
Topic: PSLF
Summary: A coalition of states challenging a new Department rule that could strip Public Service Loan Forgiveness eligibility from public workers whose employers' activities are deemed to have a "substantial illegal purpose."
Status: In process — The Department of Education has filed a notice of appeal to the First Circuit Court of Appeals, challenging the court's June 30, 2026, decision that vacated the PSLF Final Rule.
Today’s News Reporting
STATE OF NEW YORK v. MCMAHON (1:25-cv-10601)
Topic: ED Reduction in Force; Interagency Agreements
Summary: A coalition of states challenging the administration's effort to dismantle the Department of Education through a mass workforce reduction, including the attempted transfer of federal student loan management functions out of the agency.
Status: In process — Discovery is ongoing, with no ruling yet on the merits of the case.
Today’s News Reporting
360 DEGREE EDUCATION, LLC v. U.S. DEPARTMENT OF EDUCATION (4:24-cv-00508)
Topic: The "Bare Minimum Rule," which would cap GE program length at a state's minimum licensure hours instead of the current 150%-of-minimum standard.
Summary: Plaintiffs challenged ED's October 31, 2023, final rule that would have capped gainful-employment program length at 100% of a state's minimum licensure hours (the "Bare Minimum Rule"), set to take effect July 1, 2024 making any program requiring more hours than the state minimum to lose federal aid eligibility for the excess hours. In June 2024, a court granted the plaintiffs' motion for preliminary injunctive relief limited specifically to that program-length provision.
Status: In process — Stayed pending ED rulemaking on program length. ED told the court in July 2025 it wanted to reconsider the rule through negotiated rulemaking rather than litigate it.
AMERICAN ASSOCIATION OF COSMETOLOGY SCHOOLS v. U.S. DEPARTMENT OF EDUCATION (23-cv-01267)
Topic: Gainful Employment Rule
Summary: Cosmetology schools challenging the Biden-era Gainful Employment Rule, arguing that the Higher Education Act's "gainful employment" language does not authorize ED to measure programs using debt-to-earnings and earnings premium tests. ED under the current administration has defended the rule.
Status: In process — The district court upheld the rule in October 2025, and the plaintiffs appealed to the Fifth Circuit. Appellate briefing closed on June 17, 2026, and the court has not yet ruled. The GE Rule remains in effect while the appeal is pending.
CAREER COLLEGES & SCHOOLS OF TEXAS v. U.S. DEPARTMENT OF EDUCATION (23-cv-00433)
Topic: 2022 Borrower Defense Rule
Summary: Career college associations challenging the 2022 Borrower Defense Rule's adjudication and closed school discharge provisions, along with the 2019 Borrower Defense Rule provisions that OBBBA restored. OBBBA delayed the challenged 2022 provisions for loans made before July 1, 2035 until that date, and plaintiffs are asking the court to declare them unlawful so they never take effect.
Status: In process — ED moved to dismiss the amended complaint in May 2026, arguing that OBBBA codified the 2019 rule into law and that challenges to the 2022 rule are premature. Plaintiffs filed their opposition on July 6, 2026. No ruling has been made.
Today’s News Reporting
Closed Cases
AMERICAN FEDERATION OF TEACHERS v. U.S. DEPARTMENT OF EDUCATION (1:25-cv-00802)
Topic: IDR & Buyback Applications Status
Summary: Challenged ED's decision to shut down access to income-driven repayment plans, which left millions of borrowers without affordable repayment options. The case was resolved through a settlement that requires ED to publish regular status reports on its progress in processing the IDR and PSLF Buyback backlogs.
Status: Closed — Resolved via settlement; ED subject to ongoing status report requirements.
Today’s News Reporting
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- May 28, 2026: Duplicative PSLF Buyback Applications Could Reduce Ongoing Processing Backlog
- March 17, 2026: New ED Status Report Shows Growing Backlog of PSLF Buyback Applications
- January 22, 2026: New ED Status Report Shows Gradual Processing of IDR, PSLF Backlog
- December 17, 2025: Status Report for IDR, PSLF Backlog Resumes Following Government Shutdown
- August 21, 2025: Status Report: Minor Progress Toward IDR Backlog as PSLF Buyback Requests Increase
STATE OF MISSOURI v. TRUMP (4:24-cv-00520)
Topic: SAVE Plan
Summary: States' challenge to the SAVE repayment plan that led to its injunction and eventual vacatur, and later became the vehicle for a proposed ED-Missouri settlement to wind SAVE down.
Status: Closed — The Eighth Circuit's March 9, 2026, mandate directed the district court to enter final judgment vacating the SAVE Final Rule in full.
Today’s News Reporting
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- March 11, 2026: Federal Appeals Court Reverses SAVE Dismissal, Advancing ED and Missouri's Settlement
- March 6, 2026: Federal Court Denies Missouri's Request to Pause Dismissal of SAVE Lawsuit
- March 2, 2026: Court Dismisses ED's SAVE Settlement, Leaving More Questions for Borrowers
- December 10, 2025: Pending Legal Settlement Would End Biden-Era SAVE Plan
- February 25, 2025: Court Ruling Affirms Blocking of SAVE Plan While Next Steps for the Program Remain Uncertain
STATE OF MISSOURI v. UNITED STATES DEPARTMENT OF EDUCATION (4:24-cv-01316)
Topic: Student Loan Forgiveness
Summary: A multistate challenge to the Department's efforts to cancel or forgive federal student loan debt outside of the process Congress authorized.
Status: Closed — The court granted the states' request for a preliminary injunction in October 2024, blocking the Department from implementing the challenged debt cancellation rule. The underlying rule was ultimately not pursued, as after the change in administration, the Department abandoned the mass cancellation effort.
Today’s News Reporting
Publication Date: 9/18/2026
