How Congress Can Improve Protections for Private Loan Borrowers

The OBBBA made significant changes to the federal student loan system, with many of those changes likely to increase graduate students’ reliance on private student loans. Compared to federal loans, private student loans typically offer worse terms and fewer benefits for borrowers. Unfortunately, many students who borrow private loans—and the family members who co-sign them—do not understand the difference between federal and private loans until it is too late.

In anticipation of these changes, our fact sheet offers Congress solutions to pre-emptively protect students from risky private loans.