# 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.
- Title: Private lenders cash in on Trump's student loan overhaul
- Summary: As federal graduate loan programs shrink, private student lenders report surging originations and celebrate the shift.
- Keywords: student loans, private lenders, sallie mae, navient, sofi, trump administration, grad plus, parent plus, federal repayment overhaul, graduate lending, Business Insider
- Source: Business Insider — https://businessinsider.com/private-student-loan-companies-excited-trump-repayment-overhaul-earnings-borrowers-2026-11
- Author: Ayelet Sheffey
- Published: 2026-11-06T11:00:01.221+00:00
- Read time: 1 min
- Topics: student loans, private lenders, sallie mae, navient, sofi, trump administration, grad plus, parent plus, federal repayment overhaul, graduate lending, business, technology
## 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.
## Key takeaway

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.