Government Is Retreating From Student Lending

“The federal government is retreating from its central role in financing higher education,” the Wall Street Journal reports.

“President Trump’s big tax-and-spending law includes new restrictions on how much students can borrow and how they repay. The provisions begin to reverse the government’s near takeover of the $1.7 trillion student lending market over the past six decades.”

“As a result, families are reassessing the costs and risks of college. Many are likely to turn to private lenders, which typically charge higher interest rates and require creditworthy cosigners. Those lenders recently accounted for some 8% of outstanding loans.”