Federal Loan Cuts Drive Graduate Borrowers Toward Private LendersFederal Loan Cuts Send Students Into Private LendingLoan Caps Challenge Colleges to Curb Tuition Growth
Graduate student borrowing from private lenders surged in the United States after federal loan limits took effect on July 1, with lenders reporting sharp growth in the third quarter of 2026.After federal loan limits took effect on July 1, private lenders’ graduate originations surged in the third quarter, as students faced funding gaps for costly programs.Federal student-loan limits took effect on July 1, and private graduate lending surged in the third quarter as students sought financing beyond the new caps.