Navient Corp

New federal loan caps reduce the private lending market to 17.4% of graduate borrowers, reshaping opportunities for SLM, SOFI, and NAVI.

U.S. student-loan defaults have reached a record high, with over 9.5 million borrowers in default, highlighting a tightening credit environment rather than banking turmoil.

Starting July 1, new caps on federal Grad PLUS loans will force many graduate and professional students to seek private financing, potentially boosting originations at Sallie Mae and SoFi.

Private student lenders face a credit test as federal borrowing caps near and SAVE plan delays persist. Data shows at least 10% of postbaccalaureate students face funding gaps with weak credit.

Eligible federal Direct Loan borrowers will receive a temporary 1-point interest rate cut through autopay from July 1, 2026, to June 30, 2028, as new loan rates increase to between 6.52% and 9.07%.