SAN FRANCISCO, July 6, 2021 / PRNewswire / – MeasureOne today released its Private Student Loan Report, an industry-leading research report that leverages MeasureOne’s bespoke analytics services. This 16th edition of the report reaffirms that students and families continue to manage payments effectively – with the vast majority returning to regular payments despite the pandemic – and less than 1% of loans defaulting annually. Due to efforts by lenders to help families in distress due to the pandemic, the forbearance rate has increased, but these levels have since stabilized and currently stand at 3.1% of loans repaid.
“While the ongoing pandemic has posed financial challenges for students and families, private lenders have supported their clients during this unprecedented time,” said Elan Amir, CEO of MeasureOne. “It is encouraging to see so many students and families returning to regular payments, a sign that recovery is in sight. In addition, the fact that payment defaults and defaults are stabilizing at historic lows and deferral levels reaffirms how strongly the underwriting and focus on repayment ability lead to customer success. “
Private student loans, which are fully subscribed for credit and repayment checks, account for around 7.9% of total outstanding student loans in the first quarter of 2021. The remaining 92.1% of the $ 1.73 trillion Student loans are federal loans that are owned or guaranteed by the Ministry of Education.
The Private Student Loan Report (“Report”) reflects data as of the end of the first quarter of 2021 for private student loans and does not include data on federal student loans. Performance for this quarter shows encouraging recovery from the initial impact of the pandemic. At the end of the first quarter of 2021, the report found:
- The granting of private student loans throughout the 2019/20 academic year was $ 10.14 billion, 4.98% more than last year and academic year to date [AYTD] 2020/21 (Q3 2020 to Q1 2021) was over $ 7.63 billion, a decrease of 15.2% from the previous year.
- Forbearance utilization declined 56% to 3.12% at the end of Q1 2021 from Q2 2020 high of 7.04% as borrowers were able to get out of the industry’s customer support programs.
- The early stage default rate (30 to 89 days past due) was 1.73% of the loan balances in repayment (excluding deferrals as usual), and similarly the late stage default rate (90 days past due) was 0.73%. Both are near historic lows.
- The annualized gross write-offs amounted to 0.97% of the loan balances in repayment and are at an all-time low.
- The total balance for student loans presented in the report was $ 56.63 billion (including internal school loans, but excluding consolidation, refinancing and parent loans).
- Undergraduate loans made up 88.73% and graduate loans 11.27% of the loans granted in AYTD 2019/20.
The semi-annual report includes continuous contributions from the five largest lenders and student loan holders: Citizens Bank, NA, Discover Bank, Navient, PNC Bank, and NA Sallie Mae Bank. In addition to these members of the MeasureOne Private Student Loan Consortium, this report includes data from 9 other student lender contributors. Collectively, these contributors represent the vast majority of school loans and the majority of private student loans outstanding in the United States
The full report on private student loans is available for download at https://www.measureone.com/resources
About MeasureOne
MeasureOne, the leading consumer rights data exchange platform, is transforming the way businesses access and use consumer data. MeasureOne enables organizations to access a wide range of trusted consumer data while prioritizing privacy and consent. MeasureOne’s platform enables organizations to securely and reliably integrate and review consumer information such as student income, employment, education, and enrollment. MeasureOne offers flexible implementation options for businesses to easily leverage consumer-approved data, from a developer-friendly API to third-party integrations. MeasureOne is headquartered in San Francisco. For more information on MeasureOne, please visit www.measureone.com.
SOURCE MeasureOne
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source https://collegeeducationnewsllc.com/latest-measureone-private-student-loan-report-finds-pandemic-related-forbearance-levels-have-stabilized-while-delinquencies-and-defaults-remain-at-historic-lows/
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