On Point | Podcast What to know as the student loan industry becomes more privatized
5 snips
Sep 17, 2025 Join Adam Minsky, a student loan attorney and Forbes contributor, Persis Yu, managing counsel at Protect Borrowers, and Gail DeMota, president of the Education Finance Council, as they dive into the implications of a privatized student loan market. They discuss shifts in federal loan policies and increased demand for private options. The conversation also highlights the risks for borrowers and cosigners, the challenges of loan servicing, and the urgent need for stronger protections and transparency in the private lending landscape.
AI Snips
Chapters
Books
Transcript
Episode notes
Private Market Is Poised To Grow
- The private student loan market is small now but growing rapidly and could expand with federal borrowing caps.
- This shift risks pushing more students into higher-cost, less-flexible private loans.
Why Borrowers Turn To Private Loans
- Private loans often fill gaps because federal undergraduate Stafford loans are capped.
- Private loans usually require cosigners and offer far fewer repayment protections than federal loans.
Check Rate Type And Hardship Rules
- Understand private loan terms before signing, especially interest type and repayment flexibility.
- Prefer fixed rates or clear modification policies to avoid unaffordable hikes and limited hardship relief.
