TRANSUNION WARNS LENDERS ON PRIVATE STUDENT LOAN RISK AFTER US RULES

Summary from the TLDR Fintech newsletter

New federal borrowing caps could push more student borrowers toward private financing, but TransUnion says lenders will need to be selective about who they serve. Roughly 30% of federal borrowers in repayment are at least 90 days delinquent, compared with about 3% for unsecured personal loans, creating significant underwriting risk as private lenders pursue new originations and refinancing opportunities.