Federal Loan Caps Push Borrowers Toward Private Lenders

New federal student loan caps are pushing some graduate students to turn to private lenders to cover education costs, despite private loans generally offering fewer repayment protections and forgiveness options. The changes cap federal borrowing for graduate and professional programs and limit parent loans; banks have reported a sharp rise in private student loan originations. Ascent Funding is one lender highlighted for offering options to students with limited credit histories or without a cosigner, as well as certain international and DACA students. Community college students may use federal loans and, if eligible, private loans, though federal financing typically provides stronger borrower protections and not all private lenders cover associate-degree programs.