Private student-loan companies 'excited' with Trump repayment changes

Business Insider · Ayelet Sheffey · 2026-11-06 11:00 UTC

Student-loan companies, such as Sallie Mae and SoFi, reported growth in their loan portfolios as more federal borrowers turn to private lenders.

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 would create funding gaps that they could fill.

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