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New Student Loan Limits May Force More Borrowers to Take Out Private Loans
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Investopedia | Expert Financial Advice and Markets News
KEY TAKEAWAYS The "One Big, Beautiful Bill" will restrict the amount of federal student loans available to college students next year.
Borrowers will be restricted in the amount of federal student loans they can take out, which could lead to more students—especially those pursuing a medical degree—taking out private loans.
Some advocates and experts say borrowers will be forced to take out private loans to cover the costs.
"Instead, students and families will be simply pushed into more expensive, riskier, predatory, private student loan debt."
Comparatively, the interest rate for private student loans varies, ranging as high as 17.88%, according to loan marketplace Credible.
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