"Sen. Elizabeth Warren and a group of her colleagues released the first congressional analysis of the impact of the coming changes to federal student loans on the private lending market. The report - exclusively viewed by Business Insider - compiled new information provided by six lenders, detailing how they are preparing for an anticipated influx of borrowers into the private market."
"That anticipated influx is driven by changes that President Donald Trump signed into law in his "big beautiful" spending legislation. They included the elimination of the Grad PLUS program, which allowed graduate students to borrow up to the full cost of attendance, and new borrowing caps for graduate and professional students. The report found that some lenders are already making plans to expand their loan offerings in response to the federal changes."
Federal changes eliminated the Grad PLUS program and imposed borrowing caps for graduate and professional students, shifting many borrowers toward private lending. Six major private lenders — Citizens, College Ave, Navient, Nelnet, Sallie Mae, and SoFi — expect an influx of federal borrowers and are preparing to expand private loan offerings. Some lenders have sold or plan to sell student-loan portfolios to private equity firms. Democratic lawmakers expressed concern about minimal oversight, potential consumer protection gaps, and private firms 'cashing in' as lending shifts from federal to private markets.
Read at Business Insider
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