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New limits on federal student loans are steering many borrowers toward private lenders
Private lenders, led by Sallie Mae and Navient, more than doubled graduate loan originations as federal caps left students with funding gaps.
- New federal loan caps implemented by President Donald Trump have pushed graduate borrowers toward private lenders to cover costs exceeding the new limits.
- Trump's "Big Beautiful Bill" introduced borrowing limits of $200,000 for professional degrees and $100,000 for other graduate programs, with an overall lifetime cap of $257,500.
- Private lender SoFi reported student loan originations hit $2.9 billion in the third quarter in late October, while Sallie Mae noted graduate loans surged 119% year-over-year.
- At South Carolina Student Loan, graduate borrowing increased 400% this year, while at least 40 schools have cut program costs to help students navigate the new landscape.
- Jordan Matsudaira, director of the Postsecondary Education & Economics Research Center at American University, estimates that over half a million borrowers will eventually need an extra $20,000 annually.
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New limits on federal student loans have created uncertainty among university and graduate students, and have led many to resort to private funding to cover the costs of their academic programs.
·San Juan, United States
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Associated Press News+50 Reposted by 50 other sources
New limits on federal student loans are steering many borrowers toward private lenders
Borrowers around the country are turning to private lenders to help pay for college since the Trump administration imposed new limits on federal student loans.
·New York, United States
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Total News Sources57
Leaning Left22Leaning Right6Center28Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 39%
C 50%
11%
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