JPMorgan Chase: The "Bigger and Better" Act will bring growth opportunities for private lenders in student loan industry.

Analysts at JPMorgan Chase pointed out in a research report that private student loan institutions may benefit greatly from the "bigger and better" bill signed by Trump last week, with an estimated $25 billion boost. The bill limits or eliminates federal government funding for graduate students, shifting up to $140 billion of the student loan market towards the private sector. Compared to the $12 billion in private loans issued to graduate students in 2024, this represents a huge growth opportunity. Analysts suggest that with this shift, loan institutions like SoFi, Sallie Mae, and Navient are likely to see significant growth in interest and fees.