She can't get payment relief on her $137,000 in private student loans. It's a warning for millions of federal borrowers.

• Samantha Ferguson, 40, has $137,000 in private student loans.
• She's struggling to get payment relief after losing her job.
• More federal borrowers are expected to turn to private lending due to Trump's repayment changes.

When Samantha Ferguson applied to university in 2003, she turned to private student loans to finance her education.

That's because she wanted to study politics in Scotland and couldn't get federal student loans to study abroad. So she borrowed just over $104,000 from Sallie Mae, a major private student-loan lender.

Ferguson graduated in 2008. Now 40, she's paid $200,000 toward her loan — and still has a $137,000 balance.

"They're so debilitating, so crippling," Ferguson said of her loans. "I don't mind that I borrowed money to go to university, but what I've looked at in turn is that I've paid back nearly double what I've borrowed."

High interest rates coupled with interest capitalization, where unpaid interest is added to the principal, are the main reasons for Ferguson's ever-growing balance. Making things worse, she was recently "made redundant" at her job and has been asking MOHELA — which took over servicing her loans — for relief on her $1,500 monthly payments. She hasn't succeeded in getting lower payments or a payment pause.

Both federal and private borrowers struggle with repaying student-loan balances because of high interest rates. However, private student loans lack affordable repayment plans and the possibility of federal loan forgiveness. Those differences are critical, especially with more federal borrowers expected to turn to private lending once President Donald Trump's repayment overhaul goes into effect in July.

Ferguson worked in media in the United Kingdom and earned about $116,000 a year before losing her job. She said that with student loans and other expenses, she hasn't built any savings or retirement funds. When trying to secure lower payments from her lender, Ferguson said she has received conflicting information from customer service representatives about her available options, making it hard to understand her next steps.

MOHELA's website says that the private student loans it services are automatically placed in a standard repayment plan because it's "the fastest way to repay your loans and you'll pay less over time than other options." Those other options include interest-only payments, deferments, and forbearances.

Ferguson said a forbearance isn't useful for her because interest would still accrue, and it wouldn't help her pay down her balance.

"I feel like I sit in this very gray area where no one knows how to help me," Ferguson said. "I don't know what I'm going to do because the job market is a bit difficult right now, and I need to prioritize paying my rent, paying my bills, being able to actually survive, rather than paying these loans."

A private student-loan surge is coming

Ferguson has no other debt — she said her private student loans have affected her life "in every aspect." On top of not saving for retirement, she's also choosing not to have kids.

Federal borrowers who have been shielded from some of these troubles could soon share them. Trump's repayment overhaul, part of his "big beautiful" spending legislation, includes new borrowing caps for advanced degrees. Education policy watchers and lawmakers said the limits could send more students to private lending or cause them to forgo school altogether.

The major private lenders, including SoFi, Navient, College Ave, and Sallie Mae, told Democratic lawmakers in February that they are already preparing for an anticipated influx of federal borrowers.

Navient said that it "will work diligently and responsibly to respond to that additional demand." Jonathan Witter, Sallie Mae's CEO, said the company is "excited about the opportunity created by the recent federal student lending reforms."

Private student loans can be useful for borrowers who want to consolidate their loans to get a lower interest rate. With the limits on federal borrowing, they can provide the financing borrowers need. However, the private lending industry lacks the same oversight as federal student loans, making it easier for private borrowers to fall into unaffordable debt with potentially predatory terms.

Ferguson wishes she had done more homework when she applied for college to avoid ending up with unaffordable debt.

"I was quite naive at that time," she said. "We all heard from our high school counselors about going to school, getting a degree, getting an education so that you can then earn a decent salary. I didn't think I would never be able to pay them back."