New limits on federal student loans are steering many borrowers toward private lenders

New federal student loan limits took effect this fall, including caps on loans for specific programs and limits on parent borrowing.

Trump's 'Big Beautiful Bill' capped professional degree programs at $200,000 and other graduate programs at $100,000 in federal loans.

New borrowers face an overall lifetime federal borrowing cap of $257,500.

SoFi reported student loan originations of $2.9 billion in Q3, nearly double the prior year.

This fall: New federal student loan limits, including program caps and parent borrowing limits, took effect. · Weeks before Frabotta started her program: It remained uncertain whether her program would be classified as 'professional' with higher loan limits. · Days before the new rule took effect: A federal judge blocked part of the Trump administration rule, allowing nursing, physical therapy and other programs higher loan limits for now. · This year: South Carolina Student Loan saw graduate student borrowing increase 400% as it expanded loan options. · Late October: SoFi reported Q3 student loan originations of $2.9 billion, nearly double the prior year. · This fall: Frabotta borrowed about $6,000 in federal loans for her first trimester and used private loans, with her mother as cosigner, for the rest.

$2.9 billion SoFi student loan originations · 119% Increase in Sallie Mae graduate loans · $200,000 Federal loan cap for professional degree programs · $257,500 Lifetime federal borrowing cap · 400% Increase in graduate student borrowing

Whether Frabotta's physician assistant program would count as a 'professional' program with higher loan limits was undetermined until weeks before she started.