Trump's tax bill could drive students to private lenders like SoFi for higher-cost programs

President Donald Trump’s tax legislation could benefit private student loan companies like SoFi Technologies Inc. The bill imposes limits on how much students can borrow from the government, potentially driving them to private lenders for higher-cost programs. SoFi may see increased demand and refinancing activity due to the proposed changes.

The Senate passed a measure placing caps on federal student loan amounts. Graduate students could borrow $20,500 per year with a $100,000 lifetime limit. Professional students, such as those in law or medicine, could borrow $50,000 per year with a $200,000 ceiling. This is a significant decrease from current borrowing limits.

Parents borrowing for their children also face changes under the legislation, with a maximum of $65,000 per student allowed. SoFi, a major player in student lending, is poised to capture the opportunity presented by the bill. CEO Anthony Noto has expressed readiness to adapt to any federal policy changes affecting student loans.

SoFi, known for refinancing student loans, has shifted focus to fee-based businesses but remains open to lending opportunities. The company is prepared to meet customer demand for student loans, viewing it as an important product aligning with their mission of guiding members through major financial decisions.

Read more at Yahoo Finance: Trump’s Tax Bill Set to Help SoFi, Other Private Student Lenders