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Students Turn to Private Lenders as Federal Loans Tighten

Original: Students Turn to Private Lenders After Trump’s Clampdown on Federal Loans

US students are increasingly borrowing from private lenders after the Trump administration tightened access to federal student loans. The shift, reported by the Wall Street Journal, raises concerns that borrowers will face higher interest rates and fewer protections than federal loans offer. Families are weighing costlier private credit against limited federal options as funding rules change.

Why now: Policy changes to federal student lending are pushing borrowers toward riskier private options, a development with broad financial stakes for students and families.

Donald TrumpWall Street JournalUS Department of Education

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