| Friday, October 23, 2026 |
| Students Turn to Private Lenders After Trump's Clampdown on Federal Loans | |
 | Students are increasingly turning to private lenders after the Trump administration's clampdown on federal student loans, and navigating greater unpredictability with interest rates and loan terms. In some cases, they might not qualify for private loans at all. The changes are leading to more financial uncertainty for students like Victoria Chasin, who was accepted to medical school earlier this year. She knew she would be able to get $50,000 a year in federal student loans, but quickly realized she would need a lot more. Her dad agreed to cosign for a $54,000 private loan, and Chasin was able to lower the interest rate on it to 3% in part because she opted to make $25 monthly payments while in school. Still, she said she worries about having to take out a new private loan every year of medical school. "You never know what the rates are going to be," said Chasin, a 24-year-old from Colorado. For those who need to borrow more than the federal loan limits, private loans aren't a sure bet. Higher-education advocates worry that the push toward private lending will leave many students unable to qualify to fund their education. |
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