"The average cost of college rose 36% from 2014 to 2024, according to the most recent data from the National Center of Education Statistics. Combined with sustained high inflation and new caps on federal graduate student loans from the One Big Beautiful Bill Act, American families might increasingly turn to private lenders for the 2026-27 school year," WSJ Buy Side reports.

..."How do private student loans work compared to federal loans?

Private student loans have higher borrowing limits than federal loans, and might have lower interest rates for signers with good credit. 

'However, you lose a lot of the protections that federal student borrowers have when you move into the private market,' said Jill Desjean, director of policy analysis for the National Association of Student Financial Aid Administrators. 'You have to be 100% sure that you can afford to pay those loans back when you graduate.'"

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 8/11/2026