New Federal Loan Caps May Expand Private Student Loan Market, Raising Concerns for Graduate Borrowers
New federal loan caps for graduate students, established under President Trump's One Big Beautiful Bill Act, are expected to increase reliance on private student loans. However, private lenders may reject many applicants due to credit scores or income, and approved borrowers may face higher costs. Consumer advocates warn that the private market may not adequately replace federal loan programs.
Topics: education policy federal education loans Grad PLUS loan program private lenders student loans