Ninety-Eight Percent of Students and Families Successfully Managing Private Student Loan Payments According to 11th Edition of MeasureOne Report
Delinquency and Defaults Remain at or near Historic Lows
SAN FRANCISCO, December 20, 2018 (Newswire.com) - Students and families are responsibly using private student loans to cover college costs with close to 98 percent successfully managing payments according to the 11th edition of MeasureOne’s Private Student Loan Report.
Private student loans, which are made based on a robust assessment of creditworthiness and ability to repay, make up approximately 7.6 percent of total student loans outstanding as of Q3 2018. The remaining 92.4 percent of the $1.56 trillion in student loans are federal loans owned and managed by the Department of Education.
The MeasureOne Private Student Loan Report reflects data as of end-Q3 2018 for private student loans and does not include federal student loan data.
As of the end of Q3 2018, the report found:
- Early-stage delinquency (30 to 89 days past due) rate was 2.73 percent of loan balances in repayment; the late-stage delinquency (90+ days past due) rate was 1.75 percent.
- Annualized defaults were 2.19 percent of loan balances in repayment. Loans in forbearance were 2.39 percent.
- Private student loan originations in AYTD 2018/19 (Q3 2018 only) was $3.65 billion, up 11.23% year-over-year.
- The total outstanding balance for private student loans represented in the MeasureOne Report was $66.28 billion.
- On new originations, undergraduate loans accounted for 87.85 percent and graduate loans 12.15 percent of loans originated in AY 2017/18. The ratios for AYTD 2018/19 were 89.80 percent and 10.20 percent respectively.
“The MeasureOne Private Student Loan Report continues to confirm the stability and health of the private student loan market,” said Dan Feshbach, CEO for MeasureOne. “The growth in originations along with low delinquency and defaults and judicious use of forbearance show that students and families are sensibly using private student loans to cover higher education costs.”
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 Q3 2018 report includes the following eleven contributors: College Ave Student Loans, Navy Federal Credit Union and 9 members from the Education Finance Council. In total, these 17 data contributors represent 62.14 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, TX, specializes in data and analytics serving the $1.56 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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Categories: Financing and Student Loans