Student loan limits leave private lenders short in med school funding
New limits on U.S. student loans kicked in this week, and the gap is showing up in med schools. The $200,000 federal lifetime cap for professional degrees will pay for roughly two-thirds of the median four-year bill at a public med school. At private med schools, the cap covers less than half the cost. That gap is what matters to investors. The change doesn’t just lower federal risk. It pushes some grad school borrowing away from the government and into private loans, scholarships from schools, family help, or students waiting to enroll. So the issue for SLM Corp, Sallie Mae’s parent, and SoFi Technologies is how much of what’s lost will show up as new private loans, and how much
