"Private and personal lending firms could end up big winners if those changes stick. On the student debt side,President Donald Trump's "big beautiful" spending legislation called for new borrowing caps on graduate and professional loans in an attempt to curb excessive borrowing. It also eliminated the Grad and Parent PLUS programs, which allowed parents and graduate students to borrow up to the full cost of attendance for their programs."
"More recently, Trump proposed a one-year, 10% cap on credit card interest rates, which he said would prevent credit card companies from "ripping off" consumers. The changes to student loan borrowing are set to take effect in July, while it's unclear if Trump's credit card proposal will come to fruition, as its most likely path would be through congressional legislation."
"As the cost of living continues to rise in the US, personal loans, credit card debt, and student debt are already at record highs. While the benefit of a personal loan is that its flexible terms allow it to be used for a wide range of purposes, interest rates vary depending on credit scores, similar to credit cards. Similarly, taking on private student loans could also be riskier than federal fi"
Proposed caps on student-loan borrowing will limit graduate and professional loans and eliminate the Grad and Parent PLUS programs that allowed borrowing up to the full cost of attendance. A separate proposal would cap credit card interest rates at 10% for one year. The student loan changes are scheduled to take effect in July, while the credit card cap would require congressional legislation to become law. Policy experts and lenders warn that rate caps could reduce bank credit card offerings, and borrowing caps could drive borrowers toward private student loans and personal loans, which carry variable interest rates tied to credit scores. Rising living costs coincide with record-high consumer debt levels.
Read at Business Insider
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