SMITH'S RESEARCH & GRADINGS

Federal Student Loan Changes Ripple Through Higher Ed

The new federal Direct Student Loan limits, effective July 1, 2026, set clear caps for students and parents and also define exactly which education costs can be paid with these loans.

The recent federal changes could affect future borrowing by students and parents to pay the costs of higher education. However, it may also spur demand by private student loan lenders.

Is there an opportunity for private student loan lenders to gain meaningful market share?

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