Student-loan borrowers are worried about Trump's repayment overhaul. Private lenders are 'excited.'

What happened: Private student lenders reported growth in graduate lending after Trump's repayment overhaul eliminated the Grad PLUS program and capped Parent PLUS. Key numbers: Sallie Mae graduate lending up 119% year over year, 70% of its private education lending increase. Navient graduate lending up 173%, 95% of new in-school loan growth. SoFi originations up 96%. All in Q3 2026. Why it matters: Lenders credited the overhaul for funding gaps they could fill, while advocates and lawmakers warned private loans can carry higher rates, riskier terms, and fewer federal protections.

Private student lenders reported growth in graduate lending after Trump's repayment overhaul eliminated the Grad PLUS program and capped Parent PLUS.

Lenders credited the overhaul for funding gaps they could fill, while advocates and lawmakers warned private loans can carry higher rates, riskier terms, and fewer federal protections.