New federal student loan limits push borrowers to private lenders

New limits on federal student loans that took effect this fall have led many borrowers across the country to turn to private lenders for additional funding, news4jax.com reported.

These changes include caps on loans for specific programs and restrictions on the amounts parents can borrow to pay for their children's education, according to news4jax.com.

For example, a student studying to become a physician assistant faced uncertainty about whether her program qualified for higher federal loan limits, leading her to borrow a smaller federal loan initially and rely on private loans for the remainder, news4jax.com detailed.

The new federal loan limits have created anxiety among students and families trying to finance higher education, as they navigate the reduced availability of federal funds and the increased reliance on private lending sources, news4jax.com added.