Millions of student-loan borrowers are losing access to a key repayment option. A major private lender is stepping in.
Millions of student-loan borrowers will lose access to a key repayment option due to federal changes, but College Ave, a private lender, is introducing a new STEM Graduate Loan to fill the financing gap. The Department of Education is setting a $20,500 annual borrowing cap for graduate students and a $100,000 lifetime cap.
New student-loan borrowing caps on advanced degrees will take effect in July. College Ave, a private lender, is launching a new STEM Graduate Loan for graduate students to fill the federal gap. President Donald Trump's spending legislation ended the federal Grad PLUS program and set new borrowing caps. The Department of Education's new caps aim to curb excessive borrowing and unaffordable debt. College Ave's new loan allows graduates pursuing advanced STEM degrees to cover up to the full cost of attendance. Switching from federal to private lending comes with risks, including losing access to federal repayment options and loan forgiveness programs.
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