Private student lenders prepare to compete for federal borrowers
Updated
Updated · Business Insider · Apr 30
Private student lenders prepare to compete for federal borrowers
8 articles · Updated · Business Insider · Apr 30
From July, new federal borrowing caps and the end of Grad PLUS are expected to push graduate students toward private loans, with Sallie Mae and Navient telling investors they are ready.
College Ave has launched a STEM Graduate Loan covering full attendance costs, while lenders say they are expanding credit models, marketing and customer-service offerings to capture demand.
The Trump administration says the changes aim to curb excessive borrowing and pressure colleges to lower tuition, but borrower advocates and Democratic lawmakers warn heavier reliance on private loans could hurt students.
Will capping federal loans actually lower tuition, or will it create a new debt crisis with fewer borrower protections?
With 7 million borrowers losing the SAVE plan, can the strained loan system prevent a massive new wave of student defaults?
How will America fill critical jobs like nursing if students can no longer afford the degrees under new federal loan limits?