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Private student lenders report surging graduate loans after federal loan overhaul

Sallie Mae, Navient and SoFi reported sharp third-quarter lending gains after the federal overhaul.

Published Nov 7, 2026 · 17:47 UTC2 reports

The short version

  • Sallie Mae and Navient more than doubled graduate loan originations in the third quarter, the first period after the overhaul.[Business Insider]
  • President Donald Trump's federal overhaul eliminated the Grad PLUS program and capped Parent PLUS borrowing.[Business Insider]
  • SoFi reported a 96% rise in student-loan originations, while Business Insider's analysis of filings put Sallie Mae's graduate lending growth at 119%.[Business Insider]
  • Once changes are fully phased in, an American University estimate projects that over half a million borrowers will need $20,000 more a year from non-federal sources.[Associated Press]

Key facts

  • Sallie Mae and Navient more than doubled graduate loan originations year over year in the third quarter of 2026.[Business Insider]
  • The federal overhaul eliminated the Grad PLUS program and capped the Parent PLUS program.[Business Insider]
  • Sallie Mae's graduate lending grew 119% from a year earlier, according to a Business Insider analysis of financial filings.[Business Insider]
  • Navient's graduate lending increased 173% from a year earlier, according to company reports.[Business Insider]
  • SoFi reported that its student-loan originations were up 96% from a year earlier.[Business Insider]
  • At South Carolina Student Loan, graduate student borrowing increased 400% this year.[Associated Press]
  • An American University center director estimated that over half a million borrowers will need an extra $20,000 a year from non-federal sources once changes are fully phased in.[Associated Press]
  • Since the loan caps took effect, at least 40 schools have cut the cost of at least some programs, according to the American Enterprise Institute.[Associated Press]

What remains uncertain

  • The $20,000 annual funding gap is an estimate attributed to an American University center director, and its timing depends on full phase-in.[Associated Press]
  • Lending growth figures are company-reported, and the Sallie Mae figure comes from a Business Insider analysis of financial filings.[Business Insider]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.