The lede lays out the foolishness and government union disingenuousness simultaneously. A twofer.

Do government unions have a vested interest in saddling students with more debt? So they argue in a new and revealing lawsuit against new graduate loan limits.

The situation:

One of the biggest achievements in the 2025 tax bill was limiting the amount of federal loans that students could borrow to a total of $100,000 ($20,500 a year) for most graduate degrees and $200,000 ($50,000 a year) for professional ones. ….
Graduate programs have become cash cows for universities, and the caps could impel them to reduce prices and spending. … The caps are forcing some universities to reduce their bloated workforces. Hence, the union lawsuit….

Never mind how generous those limits remain, even for university incomes. Of course the government unions are objecting; those loans—uncapped—are cash cows for the unions, also, washed as they are through those bloat employees’ union dues.

Still, there is a solution, and it even serves the useful purpose of getting government out of the business of making loans. A tangential beneficial side effect is that what government gives away, here in the form of those loans, it must first take, here in the form of government borrowing.

One way to cap Federal student loans, a way which would render the question of caps irrelevant (and which would eliminate that small tangential vicious circle), would be to stop doing Federal student loans altogether. No loans, no caps.

Easy peasy.