10th Edition of MeasureOne Report Confirms Students and Families Responsibly Using Private Student Loans to Cover College Costs
Originations Increase While Delinquency and Defaults Remain at or Near Historic Lows
SAN FRANCISCO, July 24, 2018 (Newswire.com) - Students and families continue to responsibly use private student loans to cover college costs with 98 percent successfully managing payments according to the 10th edition of MeasureOne's Private Student Loan Report. MeasureOne data also shows a modest growth (six percent) in private student loan originations and historically low levels of delinquency and defaults.
Private student loans, which are fully underwritten to assess creditworthiness and ability to repay, with a total outstanding balance of $118.17 billion make up 7.75 percent of total student loans outstanding as of Q1 2018. The remaining 92.25 percent ($1.41 trillion) of the $1.53 trillion in student loans are federal loans.
The MeasureOne Private Student Loan Report reflects data as of end-Q1 2018 for private student loans and does not include federal student loan data. As of the end of Q1 2018, the report found:
- Private student loan originations in AYTD 2017/18 (July 2017 to March 2018) were $7.54 billion
- Early-stage delinquency (30 to 89 days past due) rate was 2.75 percent of loan balances in repayment and the late-stage delinquency (90-plus days past due) rate was 1.49 percent
- Annualized gross defaults were 1.77 percent of loan balances in repayment. Loans in forbearance were 2.52 percent of total outstanding balance
- The total outstanding balance for private student loans represented in the MeasureOne Report was $67.12 billion
- Undergraduate loans accounted for 89.17 percent and graduate loans 10.83 percent of loans originated in AYTD 2017/18
"The MeasureOne Private Student Loan Report continues to confirm that students and families are responsibly using private student loans to cover college costs and are judiciously and effectively paying them back," said Dan Feshbach, CEO for MeasureOne. "The private student loan market remains stable and healthy."
This semi-annual report includes continuous contributions from the MeasureOne Private Student Loan Consortium, a data cooperative of the six largest student loan lenders and holders: Citizens Bank, N.A., Discover Bank, Navient, PNC Bank, N.A., Sallie Mae Bank and Wells Fargo Bank, N.A.
The most recent report includes more performance data than ever before. In addition to the original six consortium members, the Q1 2018 report includes the following 10 contributors: College Ave Student Loans, Navy Federal Credit Union and eight members from the Education Finance Council. In total, these 16 data contributors represent 62.89 percent of the private student loans outstanding in the U.S.
The full MeasureOne Private Student Loan Report is available at https://www.measureone.com/psl.php.
MeasureOne, founded in San Francisco with offices in Dallas, Texas, specializes in data and analytics serving the $1.53 trillion-dollar student loan market, the second-largest form of consumer credit in the U.S. The company developed the first and only Private Student Loan Consortium, a data cooperative of the nation's largest lenders and holders of private student loans. MeasureOne evaluates academic and loan performance data to increase understanding of consumer lending, academic success and employment opportunities. For more information about MeasureOne, visit www.measureone.com.
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