New York, Arizona, North Carolina, Kentucky and Nevada are among the states challenging a rule that limits federal student loans for graduate degrees in nursing, physical therapy and more.
In her first appearance on Capitol Hill this year, lawmakers questioned Education Secretary Linda McMahon about students' civil rights and cuts to federal education spending.
Without this Education Department oversight, borrowers could "be placed in the wrong loan repayment status, billed for incorrect amounts" and more, the U.S. Government Accountability Office says.
Legal challenges put SAVE borrowers in limbo for months, a time during which they were not required to make payments on their loans. That would change if the proposed settlement is approved.
A new lawsuit argues the latest changes to Public Service Loan Forgiveness could exclude public servants whose organizations have resisted President Trump's policies.
The Republican proposal would eliminate Grad PLUS loans, set strict limits on Parent PLUS loans and create a system in which colleges would be on the hook if their students don't repay their loans.
