Greg Garrison

Getty Images Consider factors like repayment speed, interest rate caps, and your risk tolerance before opting for a variable-rate student loan. Key Takeaways A surge of college borrowers is expected to flood the private student loan market, and one decision they'll face is whether to choose a fixed- or variable-rate loan. Private lenders say an overwhelming majority of their borrowers opt for the more predictable fixed rates over the variable option.

Chris Jackson|Getty Images With changes coming to the federal student loan program in 2026, some students may need to turn to private student loans to fund their education. Key Takeaways The Department of Education under the Trump administration is restructuring federal student loans and capping the amount graduate students can borrow. Graduate students in programs classified as "professional" will have significantly higher federal loan caps than those in nonprofessional programs.