The shift is forcing families to weigh higher risks and less predictable costs when financing college.
• Changes under the Trump administration have narrowed access to some federal student loans, prompting more students to seek private alternatives.
• Private loans can help cover tuition gaps, but they generally offer fewer borrower protections than federal programs, including limited options for income-based repayment and loan forgiveness.
• Interest rates and repayment terms vary widely among lenders, making it harder for students to compare offers and estimate their long-term debt.
• Many private loans require a creditworthy co-signer, potentially placing parents or other relatives on the hook if a borrower cannot repay.
• Financial advisers recommend exhausting scholarships, grants and federal aid before turning to private borrowing, while carefully reviewing variable rates, fees and repayment conditions.
The growing reliance on private credit underscores the uncertainty facing students and families as they navigate a changing federal loan system and rising college costs.