"Private student-loan companies are gearing up for a big year ahead. President Donald Trump's administration is preparing to roll out its sweeping student-loan repayment changes beginning in July. Those changes include new repayment plans and caps on federalborrowing for advanced degrees. Some companies see those changes as an opportunity for the private lending industry. During an earnings call last week, Jonathan Witter, the CEO of lender Sallie Mae, said that the company is "excited about the opportunity created by the recent federal student lending reforms.""
"Read more of our student-loan coverage: Trump's "big beautiful" spending legislation eliminates the Grad PLUS program, which allowed graduate students to borrow up to the full cost of attendance for their programs. The legislation also imposes new borrowing caps for graduate and professional students: $20,500 for graduate students and $50,000 for professionals, such as those in medical or law school."
President Donald Trump's administration will roll out sweeping student-loan repayment changes beginning in July, introducing new repayment plans and caps on federal borrowing for advanced degrees. The legislation eliminates the Grad PLUS program and sets borrowing caps of $20,500 for graduate students and $50,000 for professional students. Private student-loan companies are preparing for increased business and view the reforms as an opportunity to expand private lending. Sallie Mae expects about $5 billion in annual loan originations, with other lenders anticipating similar increases. Anticipated limits on federal financing could also lead some prospective graduate students to forgo advanced degrees.
Read at Business Insider
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