Student-loan borrowers are worried about Trump's repayment overhaul. Private lenders are 'excited.'
Source: Business Insider ·
Student-loan companies, such as Sallie Mae and SoFi, reported growth in their loan portfolios as more federal borrowers turn to private lenders.
From the source
Private student-loan companies are seeing portfolio growth following the federal repayment overhaul.Keith Birmingham/MediaNews Group/Pasadena Star-News via Getty ImagesPrivate student-loan companies reported growth in their lending and graduate portfolios.They credited Trump's repayment overhaul, which eliminated the Grad PLUS program.Advocates and lawmakers said private lending can expose borrowers to higher rates and riskier terms.Private student lenders are seeing a surge in graduate borrowing.Sallie Mae and Navient both more than doubled their graduate loan originations year-over-year in the third quarter of 2026, the first earnings period after President Donald Trump's federal student-loan repayment overhaul took effect.The overhaul eliminated the Grad PLUS program, which had allowed graduate students to borrow the full cost of attendance. It also capped the Parent PLUS program, which parents use to borrow for their child's education. Private lenders had expected these changes…