From Business Insider · Ayelet Sheffey · · 1m 20s
Private lenders cash in on Trump's student loan overhaul
As federal graduate loan programs shrink, private student lenders report surging originations and celebrate the shift.
In brief
As federal graduate loan programs shrink, private student lenders report surging originations and celebrate the shift. Private student lenders are seeing sharp growth in graduate lending after Trump's federal repayment overhaul eliminated the Grad PLUS program, while borrowers face higher costs and fewer protections…
Trump's overhaul cuts federal graduate loans
President Donald Trump's federal student-loan repayment overhaul eliminated the Grad PLUS program, which allowed graduate students to borrow the full cost of attendance. It also capped the Parent PLUS program.
Sallie Mae and Navient see explosive growth
Sallie Mae and Navient both more than doubled their graduate loan originations year-over-year in the third quarter of twenty twenty-six, the first earnings period after the overhaul took effect.
Sallie Mae's graduate lending surges one hundred nineteen percent
Sallie Mae's graduate lending grew one hundred nineteen percent from a year earlier, accounting for seventy percent of the company's year-over-year increase in private education lending.
“We continue to be excited about the PLUS opportunity and believe the investments we have made and performance this quarter position us well for future originations growth.”
Navient's graduate lending jumps one hundred seventy-three percent
Navient's graduate lending increased one hundred seventy-three percent from a year earlier, accounting for ninety-five percent of its growth in new in-school loans.
Borrowers lose federal protections in private market
Private loans lack federal protections and relief programs such as income-driven repayment and Public Service Loan Forgiveness. Borrowers have reported spiking monthly bills and errors navigating the new repayment landscape.
“The Trump administration should focus on lowering costs for students and borrowers, not giving predatory private lenders free rein to profit off of American families.”
The short version
Private student lenders are seeing sharp growth in graduate lending after Trump's federal repayment overhaul eliminated the Grad PLUS program, while borrowers face higher costs and fewer protections.
