GoKawiilFederal student loan caps push borrowers to private lenders, boosting SoFi and Sallie Mae volumes
New federal borrowing limits took effect this fall under Trump's spending law, capping how much graduate students and parents can borrow for education and leaving some programs' professional status uncertain until shortly before classes began. Students like Chloe Frabotta have had to supplement smaller federal loans with private loans, often requiring a cosigner. Private lenders SoFi and Sallie Mae reported sharp increases in student loan originations this quarter, with SoFi's volume nearly doubling and Sallie Mae's graduate loans up 119% year-over-year.