{"id":6137,"date":"2026-05-14T21:21:00","date_gmt":"2026-05-14T19:21:00","guid":{"rendered":"http:\/\/stocks-future.com\/?guid=5ba989ac47e326cce5448c35dfea3e38"},"modified":"2026-05-14T21:21:00","modified_gmt":"2026-05-14T19:21:00","slug":"kbra-releases-research-capping-graduate-lending-a-tailwind-for-student-loan-abs-supply","status":"publish","type":"post","link":"https:\/\/stocks-future.com\/?p=6137","title":{"rendered":"KBRA Releases Research \u2013 Capping Graduate Lending: A Tailwind for Student Loan ABS Supply"},"content":{"rendered":"<p>NEW YORK--(BUSINESS WIRE)--<a href=\"https:\/\/twitter.com\/hashtag\/creditratingagency?src=hash\" >#creditratingagency<\/a>--KBRA releases research that examines the One Big Beautiful Bill Act's (OBBBA) potential to increase student loan ABS issuance beginning in July 2026 by creating a structural funding gap in graduate education. By capping federal borrowing and eliminating Graduate PLUS (Grad PLUS) for new borrowers, the legislation will shift incremental loan demand toward private lenders\u2014some of which rely on securitization as a core funding source. In this report, we examine the size of the funding gap and discuss how the legislation could drive higher student loan ABS new issue\u00a0volumes.<\/p><br\/><a href=\"https:\/\/mms.businesswire.com\/media\/20260514366046\/en\/2805771\/5\/kbra-logo.jpg\"><img src=\"https:\/\/mms.businesswire.com\/media\/20260514366046\/en\/2805771\/22\/kbra-logo.jpg\" \/><\/a><br\/><a href=\"https:\/\/mms.businesswire.com\/media\/20260514366046\/en\/2805771\/5\/kbra-logo.jpg\"><img src=\"https:\/\/mms.businesswire.com\/media\/20260514366046\/en\/2805771\/21\/kbra-logo.jpg\" \/><\/a><p>\n<strong>Key Takeaways<\/strong><\/p><ul class=\"bwlistsquare\">\n<li>\nThe OBBBA is likely to create a structural funding gap of approximately $10 billion-$12 billion per year in graduate education, as new federal loan caps and the elimination of Grad PLUS for new borrowers constrain borrowing capacity, particularly in high-cost professional programs.<\/li>\n<li>\nWe do not expect displaced federal borrowing to convert one-for-one into private lending, reflecting the fact that private student lenders underwrite more selectively than the federal government. The Federal Reserve estimates that 60% of the funding gap will migrate to private lenders, implying approximately $6 billion-$7 billion of incremental annual private student loan originations.<\/li>\n<li>\nWhile it remains uncertain how much of the funding gap will ultimately be absorbed by private lenders\u2014and, in turn, how much of that incremental lending will be financed through the ABS market\u2014we anticipate the shift to a capped federal lending framework to provide a meaningful tailwind for student loan ABS issuance over time.<\/li>\n<\/ul><p>\nClick <a  href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.kbra.com%2Fpublications%2FrtLNNmnV&amp;esheet=54536293&amp;newsitemid=20260514366046&amp;lan=en-US&amp;anchor=here&amp;index=1&amp;md5=407c31d184d3773bbd40ef5c23282b74\" rel=\"nofollow\" shape=\"rect\">here<\/a> to view the report.<\/p><p>\n<strong>Recent Publications<\/strong><\/p><ul class=\"bwlistsquare\">\n<li>\n<a  href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.kbra.com%2Fpublications%2FfVWhgHsG%2Ffederal-student-loan-defaults-doe-enforcement-delays-temper-consumer-credit-risk&amp;esheet=54536293&amp;newsitemid=20260514366046&amp;lan=en-US&amp;anchor=Federal+Student+Loan+Defaults%3A+DOE+Enforcement+Delays+Temper+Consumer+Credit+Risk&amp;index=2&amp;md5=fa8e8828ba80a17d4f1257b2c1a68bf2\" rel=\"nofollow\" shape=\"rect\">Federal Student Loan Defaults: DOE Enforcement Delays Temper Consumer Credit Risk<\/a><\/li>\n<li>\n<a  href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.kbra.com%2Fpublications%2FqxsbSrSk%2Ffederal-student-loan-defaults-and-securitized-consumer-credit&amp;esheet=54536293&amp;newsitemid=20260514366046&amp;lan=en-US&amp;anchor=Federal+Student+Loan+Defaults+and+Securitized+Consumer+Credit&amp;index=3&amp;md5=9b4e0ab0b45750279b16fc18b7a14080\" rel=\"nofollow\" shape=\"rect\">Federal Student Loan Defaults and Securitized Consumer Credit<\/a><\/li>\n<li>\n<a  href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.kbra.com%2Fpublications%2FxhNpsBgW%2Fend-of-student-loan-forbearance-implications-on-consumer-credit&amp;esheet=54536293&amp;newsitemid=20260514366046&amp;lan=en-US&amp;anchor=End+of+Student+Loan+Forbearance%3A+Implications+on+Consumer+Credit&amp;index=4&amp;md5=8f26d2584d7807ed64d0b25cea3a8921\" rel=\"nofollow\" shape=\"rect\">End of Student Loan Forbearance: Implications on Consumer Credit<\/a><\/li>\n<\/ul><p>\n<strong>About KBRA<\/strong><\/p><p>\nKBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.<\/p><p>\nDoc ID: 1014996<\/p><br\/> <b>Contacts<\/b> <br\/><p>\nBrian Ford, Managing Director\n<br\/>+1 646-731-2329\n<br\/><a  href=\"mailto:brian.ford@kbra.com\" rel=\"nofollow\" shape=\"rect\">brian.ford@kbra.com<\/a><\/p><p>\nCaleb Murthy, Senior Analyst\n<br\/>+1 646-731-1433\n<br\/><a  href=\"mailto:caleb.murthy@kbra.com\" rel=\"nofollow\" shape=\"rect\">caleb.murthy@kbra.com<\/a><\/p><p>\n<strong>Media Contact<\/strong><\/p><p>\nAdam Tempkin, Senior Director of Communications\n<br\/>+1 646-731-1347\n<br\/><a  href=\"mailto:adam.tempkin@kbra.com\" rel=\"nofollow\" shape=\"rect\">adam.tempkin@kbra.com<\/a><\/p><p>\n<strong>Business Development Contact<\/strong><\/p><p>\nArielle Smelkinson, Senior Director\n<br\/>+1 646-731-2369\n<br\/><a  href=\"mailto:arielle.smelkinson@kbra.com\" rel=\"nofollow\" shape=\"rect\">arielle.smelkinson@kbra.com<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>NEW YORK&#8211;(BUSINESS WIRE)&#8211;#creditratingagency&#8211;KBRA releases research that examines the One Big Beautiful Bill Act&rsquo;s (OBBBA) potential to increase student loan ABS issuance beginning in July 2026 by creating a structural funding gap in graduate educat&#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6137","post","type-post","status-publish","format-standard","hentry","category-infos-businesswire"],"_links":{"self":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/6137","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6137"}],"version-history":[{"count":1,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/6137\/revisions"}],"predecessor-version":[{"id":6138,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/6137\/revisions\/6138"}],"wp:attachment":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}