Latest news with #SallieMae
CNBC
5 days ago
- Business
- CNBC
New federal student loan limits are a 'punch in the face' for aspiring doctors: American Medical Association president
A measure in President Donald Trump's "big beautiful bill" that caps federal student loans could make it harder for medical students to finance their education or force them to abandon their medical school plans, experts say. Starting next year, the legislation caps the amount of federal loans students can borrow for graduate school at $100,000 over a lifetime — and sets a lifetime loan limit of $200,000 for professional programs, such as medical, dental or law school. Grad PLUS loans will also be eliminated entirely. Those changes go into effect for new borrowers on July 1, 2026. Some experts say the new loan limits will provide a much-needed check on soaring tuition costs, which have jumped significantly in recent decades, outpacing inflation and other household expenses. Higher costs have made college and graduate school seem out of reach for some while saddling others with crippling student loan debt. More from Personal Finance:These college majors have the best job prospectsFamilies feel confident about paying for college, until tuition bills arriveStudent loan borrowers — how will the end of the SAVE plan impact you? Tell us Families, too, support having additional guardrails. Roughly two-thirds, or 67%, of parents said there should be limits on how much federal student loan debt students can take on, according to Sallie Mae's annual How America Pays for College report. However, for aspiring doctors, the limits may mean drastic changes. The average cost of medical school already exceeds $200,000. At private institutions, the average cost is more than $300,000, according to 2024 data from the Association of American Medical Colleges. "This is now a generation that has a big-time punch in the face," said Bobby Mukkamala, president of the American Medical Association. "People view medical students as future rich people and that's not the case at all," said Kylie Ruprecht, a third-year student at the University of Wisconsin School of Medicine. "You go into crazy, crazy debt to go into medicine," said Ruprecht, 24, "and then repay those loans over decades." Ruprecht relies on a combination of unsubsidized student loans and Grad PLUS loans to cover her costs. Once she graduates, she will begin a four-year residency to become an anesthesiologist. It will be years before she is on solid financial footing, she said. Ruprecht declined to say how much she will owe, in total, when she graduates. Although Ruprecht is grandfathered into the old borrowing limits, her current debt load, with Grad Plus loans, would surpass the new loan caps, she said. In fact, about 27.5% of medical school students and 60% of those in dentistry programs graduated with more debt in 2020 than is allowed under the new loan limits, according to calculations by higher education expert Mark Kantrowitz. "Medical school is the 'hair on fire' situation because the numbers are big, period, and the gaps between the federal loan limits and the program costs are sizeable," said Ken Ruggiero, co-founder and CEO of private education lender Ascent Funding. Nearly every year, students and their families are borrowing more to make up the difference. Now, around 44 million Americans owe a combined $1.7 trillion for their education. Roughly 40% of that outstanding federal student loan debt is taken on for master's and PhD programs. The new legislation "doesn't affect everyone equally," Mukkamala said — it's students from underserved communities who will be less likely to go into the medical field as the new loan limits fall short of the total cost of attendance, which is over $200,000. "If someone like that gets through college and looks at that number, they are going to say, 'no way,'" he said. According to 2024 projections by the Association of American Medical Colleges, the U.S. was already on track to have a shortage of up to 86,000 physicians by 2036. "The new annual and aggregate loan limits could create challenges for some medical students to finance their education, resulting in an additional financial barrier to attending medical school and ultimately worsening the current and projected physician shortage," said Kristen Earle, program leader for student financial aid services at the Association of American Medical Colleges. "We are concerned that this added barrier could deter qualified candidates, particularly low-income students, from pursuing a medical career altogether," Earle said. It's likely the new limits on federal student loans will spur borrowers to find other lenders to bridge the gap, Earle said. "The changing landscape does present an opportunity for private lenders." Private student loans often come into play once students have reached the federal loan limits and still need additional education financing. "The new loan limits for Parent PLUS loans and graduate/professional school loans will shift some borrowing from federal loans to private student loans," Kantrowitz also recently told CNBC. "This will particularly impact low-income students, who are less likely to qualify for private student loans." Unlike federal loans, private loans are not guaranteed. Private student loan lenders rely on a borrower's credit score to determine eligibility and interest rate. "We want to lend to people who can afford to pay us back, that's how the model works," said Ascent's Ruggiero. Private loans also come with fewer safety nets and less flexible repayment options compared with federal loans. "The idea behind [the loan limits] is great, but it's not putting the burden on the universities. It's putting the burden on students," said Ruprecht, the aspiring anesthesiologist. "It's students who will have to scramble."
Yahoo
5 days ago
- Business
- Yahoo
Adtalem Global Education and Sallie Mae Sign Letter of Intent to Explore New Student Financing Model
Aims to establish uninterrupted access to responsible student financing ahead of changes to federal student loan programs CHICAGO & NEWARK, Del., August 06, 2025--(BUSINESS WIRE)--Adtalem Global Education Inc. (NYSE: ATGE) and Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today announced they have signed a Letter of Intent to explore alternative financing solutions for healthcare students as the federal Grad PLUS loan program phases out beginning July 1, 2026. The planned initiative intends to establish an alternative financing framework to help students across Adtalem's five institutions—representing one of the largest concentrations of future healthcare professionals—access funding to pursue their career goals. According to U.S. Bureau of Labor Statistics projections, healthcare occupations are expected to grow much faster than the average for all occupations from 2023-2033, with healthcare workers benefiting from recession-resistant career stability within the $4.3 trillion U.S. healthcare sector. In addition, the U.S. faces healthcare workforce shortages, with more than 7,000 areas currently designated as Health Professional Shortage Areas by the Health Resources and Services Administration. Moreover, the Association of American Medical Colleges projects a physician shortage of up to 124,000 by 2034, highlighting the urgent need for healthcare workforce expansion. "Sallie Mae is an exceptional leader in student financing, and an ally in our mission to scale healthcare education nationwide," said Steve Beard, chairman and chief executive officer, Adtalem Global Education. "Our institutions support over 90,000 students in their career aspirations, many of whom form the backbone of the U.S. healthcare system. This anticipated program will deepen our relationship with Sallie Mae and is expected to expand financing access for our students to complete their education and work in communities across the country. Together, we're creating innovative solutions that drive student success while addressing critical healthcare workforce needs—it's a win-win." "As the market leader for private student lending, we are well-positioned to create innovative and scalable solutions that meet the evolving needs of our school partners and help as many students as possible access and responsibly fund their higher education," said Jon Witter, chief executive officer, Sallie Mae. "This proposed initiative with Adtalem will not only assist their students pursuing critical, in-demand healthcare professions but also could serve as a model for other institutions seeking alternative financing solutions as they navigate changes to the federal student loan program." The planned program will seek to establish a framework for developing tailored financing solutions specifically designed for healthcare education, which is expected to include deferred repayment options and degree-specific terms. The companies expect to finalize a definitive agreement and announce financing products in the coming months, subject to regulatory processes and final agreements. About Sallie Mae Sallie Mae (Nasdaq: SLM) believes education and life-long learning, in all forms, help people achieve great things. As the leader in private student lending, we provide financing and know-how to support access to college and offer products and resources to help customers make new goals and experiences, beyond college, happen. Learn more at Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America. About Adtalem Global Education Adtalem Global Education is the leading provider of healthcare education in the U.S., shaping the future of healthcare by preparing a workforce with high-quality academic programs. We innovate education pathways, align with industry needs and empower individuals to reach their full potential. Our commitment to excellence and access is reflected in our expansive network of institutions, serving over 90,000 students and supported by a strong community of approximately 365,000 alumni and nearly 10,000 dedicated employees. Visit for more information, and follow us on LinkedIn, Instagram and Facebook. Category: Corporate and Financial View source version on Contacts Media Contacts: Sallie MaeRick AdtalemMaureen Sign in to access your portfolio
Business Wire
5 days ago
- Business
- Business Wire
Adtalem Global Education and Sallie Mae Sign Letter of Intent to Explore New Student Financing Model
CHICAGO & NEWARK, Del.--(BUSINESS WIRE)--Adtalem Global Education Inc. (NYSE: ATGE) and Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today announced they have signed a Letter of Intent to explore alternative financing solutions for healthcare students as the federal Grad PLUS loan program phases out beginning July 1, 2026. The planned initiative intends to establish an alternative financing framework to help students across Adtalem's five institutions—representing one of the largest concentrations of future healthcare professionals—access funding to pursue their career goals. According to U.S. Bureau of Labor Statistics projections, healthcare occupations are expected to grow much faster than the average for all occupations from 2023-2033, with healthcare workers benefiting from recession-resistant career stability within the $4.3 trillion U.S. healthcare sector. In addition, the U.S. faces healthcare workforce shortages, with more than 7,000 areas currently designated as Health Professional Shortage Areas by the Health Resources and Services Administration. Moreover, the Association of American Medical Colleges projects a physician shortage of up to 124,000 by 2034, highlighting the urgent need for healthcare workforce expansion. "Sallie Mae is an exceptional leader in student financing, and an ally in our mission to scale healthcare education nationwide," said Steve Beard, chairman and chief executive officer, Adtalem Global Education. "Our institutions support over 90,000 students in their career aspirations, many of whom form the backbone of the U.S. healthcare system. This anticipated program will deepen our relationship with Sallie Mae and is expected to expand financing access for our students to complete their education and work in communities across the country. Together, we're creating innovative solutions that drive student success while addressing critical healthcare workforce needs—it's a win-win." 'As the market leader for private student lending, we are well-positioned to create innovative and scalable solutions that meet the evolving needs of our school partners and help as many students as possible access and responsibly fund their higher education,' said Jon Witter, chief executive officer, Sallie Mae. "This proposed initiative with Adtalem will not only assist their students pursuing critical, in-demand healthcare professions but also could serve as a model for other institutions seeking alternative financing solutions as they navigate changes to the federal student loan program.' The planned program will seek to establish a framework for developing tailored financing solutions specifically designed for healthcare education, which is expected to include deferred repayment options and degree-specific terms. The companies expect to finalize a definitive agreement and announce financing products in the coming months, subject to regulatory processes and final agreements. About Sallie Mae Sallie Mae (Nasdaq: SLM) believes education and life-long learning, in all forms, help people achieve great things. As the leader in private student lending, we provide financing and know-how to support access to college and offer products and resources to help customers make new goals and experiences, beyond college, happen. Learn more at Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America. About Adtalem Global Education Adtalem Global Education is the leading provider of healthcare education in the U.S., shaping the future of healthcare by preparing a workforce with high-quality academic programs. We innovate education pathways, align with industry needs and empower individuals to reach their full potential. Our commitment to excellence and access is reflected in our expansive network of institutions, serving over 90,000 students and supported by a strong community of approximately 365,000 alumni and nearly 10,000 dedicated employees. Visit for more information, and follow us on LinkedIn, Instagram and Facebook.
Globe and Mail
5 days ago
- Business
- Globe and Mail
Adtalem Global Education and Sallie Mae Sign Letter of Intent to Explore New Student Financing Model
Adtalem Global Education Inc. (NYSE: ATGE) and Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today announced they have signed a Letter of Intent to explore alternative financing solutions for healthcare students as the federal Grad PLUS loan program phases out beginning July 1, 2026. The planned initiative intends to establish an alternative financing framework to help students across Adtalem's five institutions—representing one of the largest concentrations of future healthcare professionals—access funding to pursue their career goals. This press release features multimedia. View the full release here: According to U.S. Bureau of Labor Statistics projections, healthcare occupations are expected to grow much faster than the average for all occupations from 2023-2033, with healthcare workers benefiting from recession-resistant career stability within the $4.3 trillion U.S. healthcare sector. In addition, the U.S. faces healthcare workforce shortages, with more than 7,000 areas currently designated as Health Professional Shortage Areas by the Health Resources and Services Administration. Moreover, the Association of American Medical Colleges projects a physician shortage of up to 124,000 by 2034, highlighting the urgent need for healthcare workforce expansion. "Sallie Mae is an exceptional leader in student financing, and an ally in our mission to scale healthcare education nationwide," said Steve Beard, chairman and chief executive officer, Adtalem Global Education. "Our institutions support over 90,000 students in their career aspirations, many of whom form the backbone of the U.S. healthcare system. This anticipated program will deepen our relationship with Sallie Mae and is expected to expand financing access for our students to complete their education and work in communities across the country. Together, we're creating innovative solutions that drive student success while addressing critical healthcare workforce needs—it's a win-win." 'As the market leader for private student lending, we are well-positioned to create innovative and scalable solutions that meet the evolving needs of our school partners and help as many students as possible access and responsibly fund their higher education,' said Jon Witter, chief executive officer, Sallie Mae. "This proposed initiative with Adtalem will not only assist their students pursuing critical, in-demand healthcare professions but also could serve as a model for other institutions seeking alternative financing solutions as they navigate changes to the federal student loan program.' The planned program will seek to establish a framework for developing tailored financing solutions specifically designed for healthcare education, which is expected to include deferred repayment options and degree-specific terms. The companies expect to finalize a definitive agreement and announce financing products in the coming months, subject to regulatory processes and final agreements. About Sallie Mae Sallie Mae (Nasdaq: SLM) believes education and life-long learning, in all forms, help people achieve great things. As the leader in private student lending, we provide financing and know-how to support access to college and offer products and resources to help customers make new goals and experiences, beyond college, happen. Learn more at Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America. About Adtalem Global Education Adtalem Global Education is the leading provider of healthcare education in the U.S., shaping the future of healthcare by preparing a workforce with high-quality academic programs. We innovate education pathways, align with industry needs and empower individuals to reach their full potential. Our commitment to excellence and access is reflected in our expansive network of institutions, serving over 90,000 students and supported by a strong community of approximately 365,000 alumni and nearly 10,000 dedicated employees. Visit for more information, and follow us on LinkedIn, Instagram and Facebook.
CNBC
6 days ago
- Business
- CNBC
Many families feel confident about paying for college — until tuition bills arrive. Here's how they're covering costs
With the start of fall semester just weeks away, sky-high college costs are an extreme pain point for most students and their parents. A recent report by Citizens Financial Group found a growing "confidence gap." While 59% of parents said they were confident about managing college expenses when their child was accepted, just 21% said they felt prepared for the actual cost once tuition bills arrived. "We know the cost of attendance continues to grow, and a lot of forms of federal lending and grants and aid have not kept pace," said Chris Ebeling, head of student lending at Citizens. "Families felt like they were going to be OK, but once those tuition bills arrived, that number plummeted," Ebeling said. In April and May, Citizens polled more than 1,000 parents of children aged 13 to 29 who are either planning on attending or have some experience with college. More from Personal Finance:These college majors have the best job prospectsStudent loan forgiveness may soon be taxed againStudent loan borrowers — how will the end of the SAVE plan impact you? Tell us College costs have risen significantly in recent decades, with tuition increasing 5.6% a year, on average, since 1983 — outpacing inflation and other household expenses, according to a recent report by J.P. Morgan Asset Management. A growing share of schools are now crossing the $100,000 threshold for total annual cost to attend, and tuition is still rising roughly 5% a year. To be sure, few families pay a school's sticker price. As of the 2024-25 academic year, the amount families actually spent on education costs was closer to $31,000, on average, according to Sallie Mae's annual How America Pays for College report — but that figure is still up nearly 10% from a year earlier. Sallie Mae polled 1,000 parents of undergraduate students between the ages of 18 and 24, as well as 1,000 undergraduate students. In most cases, parent income and savings cover about half of college costs. Free money from scholarships and grants accounts for more than a quarter of the costs and student loans make up most of the rest, the education lender found. Scholarships are a key source of funding, yet only about 60% of families use them, according to Sallie Mae. Those who do receive about $8,000, on average. "Every dollar counts when it comes to paying for college," said Rick Castellano, a spokesperson for Sallie Mae. "The last thing you want to do is leave free money on the table." There are other "stubborn statistics," too, Castellano said, which are at odds with the growing cost-consciousness among families. For example, only 71% of families submitted the Free Application for Federal Student Aid, or FAFSA, which serves as the gateway to all federal aid money, including loans, work study and grants. That's down from 74% in the previous academic year. And although most advisors say 529 college savings plans are a "no-brainer" when it comes to financial planning for college — largely because of the tax advantages — fewer than one-third of families utilize them, according to Sallie Mae. "I think there is generally a lack of awareness around 529 plans," Castellano said. Recent data from Credit Karma paints an even starker picture: Fewer than one-quarter of the parents polled said they had a 529 account for their children and 43% said they've never heard of a 529 at all. Roughly 18% said they aren't contributing because they didn't realize the funds could be used for education expenses beyond college, such as K-12 private school tuition or trade and vocational programs — not to mention that Donald Trump's massive tax and spending package expanded 529 qualified education expenses even further to include educational therapies and tutoring, among other costs, for students starting in kindergarten. Most experts say 529 plans are often misunderstood and overlooked. But even among families that do have a college plan, and have saved for years, few have enough stashed away to cover the entire cost. "Even those families that are really well prepared, most families are going to have a financial gap," Ebeling said. Another point of contention is the growing share of young adults rethinking their education altogether. The rising cost of attendance and ballooning student loan balances have played a large role in changing views about the higher education system, with students increasingly deciding to opt out. "The last thing you want, as parents or students, is to feel like higher education is the ultimate goal and you get ready to pay and it's just not possible," Castellano said.
