New federal legislation, referred to as the 'Big Beautiful Bill,' was passed on July 3, 2025, which includes the elimination of the Grad PLUS loan program, effective July 1, 2026. This policy change is anticipated to create a substantial, multi-billion dollar growth opportunity for private in-school graduate loans.
Historically, Grad PLUS loan originations have been around $14 billion annually, while the private in-school graduate market currently represents only about 10% of that volume. The elimination of this federal program is expected to drive increased demand for private alternatives, directly benefiting companies like Navient.
Navient is well-positioned to capitalize on this shift, as graduate students already constitute 56% of its year-to-date in-school volume and 57% of its refinance volume. The company's successful issuance of its inaugural in-school ABS deal in June 2025, which was 6x oversubscribed and featured a 45% graduate component, underscores strong investor demand for these assets.
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