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Private Student Loan Report Q1 2016

The NEW MeasureOne Securities Report

The MeasureOne Securities Report is a robust information source for data-driven leaders and analysts who want insight into the student loan securities market.

MeasureOne has built the report over the past four (4) years, drawing upon 25 years of experience building securities databases for multiple other industries. With this experience, the result is a report which covers every public student loan securitization.

The report is based off of our Securities Insight database which is assembled from more than 550 deals from 56 issuers. The database is updated daily which is then gathered for this report view to give an accurate picture of the student loan ABS (SLABS) market.

If you are looking for more detailed information into the Securities Market, please contact us to discuss Securities Insight.

Private Student Loan Report Q1 2016

Executive Summary

The semiannual MeasureOne Private Student Loan Report provides data and analytics on private student lending, including repayment and delinquency trends, as well as loan performance activity among borrowers and lenders. Research in this report reflects data as of Q1 2016 for private student loans and does not include federal student loan data. According to the data, families are successfully managing their private student loans with delinquency and charge-off rates improving to the lowest rate since before the 2008 economic crisis; and borrowers continue to use forbearance judiciously. This installment of the report focuses exclusively on school-certified loans, and does not include consolidation loans, which are typically made to borrowers who no longer attend school and who seek to combine education loans into a single education debt obligation.

Key Research Findings

  • The early-stage delinquency rate (30 to 89 days past due) declined by 9.0 percent year over year and stands at 2.5 percent of total loans in repayment.
  • The late-stage delinquency rate (90 days or more past due) declined by 16.8 percent year over year and stands at 1.9 percent of total loans in repayment.
  • Comparing graduate loans to undergraduate loans, the early-stage delinquency rate for undergraduate loans is 2.6 percent compared with 1.6 percent for graduate loans; and the late-stage delinquency rate for undergraduate loans is 2.1 percent compared with 1.1 percent for graduate loans.
  • Annualized charge-offs declined by 17.7 percent year over year and stand at 2.3 percent of loans in repayment, the lowest Q1 charge-off rate since before the financial crisis. By comparison, the charge-off rate five years ago was 5.1 percent, representing a decline of 54.5 percent from Q1 2011 to Q1 2016.
  • 2.2 percent are in Forbearance, a year-over-year decline of 4.1 percent, and a five-year decline of 26.6 percent compared to Q1 2011. Forbearance is a borrower-requested status in which no payments are being made, but interest accrues.
  • School certification for private student loans, in which the school verifies actual funds needed and receives the funds on the student's behalf, has reached almost 100 percent with 99.3 percent of private student loans being certified. Higher school certification rates directly correlate to improved loan performance and repayment rates.


The data for this report is sourced from the MeasureOne Private Student Loan Consortium, a data cooperative of lenders and holders of private student loans. Members include 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. In aggregate, the members of the consortium represent more than 65 percent of all private academic lending activity in the U.S. Overall, private student loans make up roughly 7.5 percent – approximately $102 billion – of total student loans outstanding. The remaining 92.5 percent of the $1.36 trillion in total student loans are federal loans.

Private student loans are credit-based loans underwritten by lenders who assess a number of factors, including ability to repay, before making a decision to lend. Roughly 94 percent of undergraduate private student loans included a cosigner in academic year 2015-16, and 61 percent of graduate private student loans included a cosigner. The vast majority of cosigners are parents and other close family members.

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