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New Federal Student Loan Limits Shift Profitable Loans To Private Lenders
At first glance, the Trump administration’s push to privatize federal student loans might look like a political calculation. But the economics behind recent policy changes tell a subtler story.
Under the One Big Beautiful Bill Act (OBBBA), the administration’s sweeping higher-education and tax package, the federal government is tightening who can borrow and how much through programs like Parent PLUS and Grad PLUS. These loans have long been among the government’s most profitable, often taken out by creditworthy parents in the middle or late stage of their careers, or graduate students…
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