Private Student Lenders Sallie Mae and SoFi See Growth as Borrowers Worry Over Trump Repayment Overhaul

As the Trump administration pushes to overhaul federal student-loan repayment plans, private lenders like Sallie Mae and SoFi are reporting growth in their loan portfolios. The companies say more federal borrowers are turning to them amid uncertainty over income-driven repayment options and loan forgiveness programs. Sallie Mae and SoFi both noted increased demand for private student loans and refinancing in recent earnings reports. The shift could reshape the $1.7 trillion student debt market, with private lenders capturing a larger share if federal benefits are scaled back. Borrowers, however, may face higher interest rates and fewer protections than federal loans offer. The trend underscores how policy changes can quickly alter borrowing behavior. Private lenders are 'excited' about the opportunity, but consumer advocates warn that borrowers should carefully weigh the trade-offs before refinancing federal debt into private loans.