Research in this report reflects data as of Q1 2016 for private student loans and does not include federal student loan data. 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.
“It’s encouraging to see such continued positive repayment trends among families with private student loans, particularly given the importance of higher education affordability in the national dialogue,” said Chris Keaveney, president and chief credit officer for MeasureOne. “The data speaks for itself and shows that most families with private student loans are paying on time, selectively using forbearance and avoiding default,” he said.
The data in the 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 education lending activity in the U.S.
Key Performance and Portfolio Metrics Summary
The full MeasureOne Private Student Loan Report is available at measureone.com
*Academic year 2015/2016 includes originations only through Q1 2016.
MeasureOne, based in San Francisco, collects, analyzes and distributes data and analysis on the student loan market in the United States. The company developed the nation’s first and only Private Student Loan Consortium, a data cooperative of the nation’s largest lenders and holders of private student loans. MeasureOne provides information and analytics on student lending including repayment and delinquency trends, risk assessment, capital market investments and public policy issues. For more information about MeasureOne, visit www.measureone.com.
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About University Ventures
University Ventures (UV) is the only investment firm focused exclusively on the global higher education sector. UV pursues a differentiated strategy of “innovation from within.” UV has the deepest respect for the missions and traditions of colleges and universities around the world and is confident that through innovation, these same institutions will be successful in fulfilling and expanding their missions. By partnering with top-tier universities and colleges and then strategically directing private capital to develop innovative programs of exceptional quality that address major economic and social needs, UV is setting new standards for student outcomes and advancing the development of the next generation of colleges and universities on a global scale. For more information, visit http://universityventures.com.
MeasureOne, founded in San Francisco with offices in Dallas, TX and Ahmedabad, India, specializes in data and analytics serving the $1.4 trillion dollar student loan market in the United States. The company developed the nation’s first and only Private Student Loan Consortium, a data cooperative of the nation’s largest lenders and holders of private student loans. MeasureOne is applying data science and industry expertise in order to increase understanding of student loans and empower student loan lending, risk assessment, repayment, capital market investments and public policy development. For more information about MeasureOne, visit www.measureone.com.
Jack Remondi, Navient’s chief executive, said at a conference last month that the actions the company has taken, including the extensions and repurchasingremaining balances within trusts once they have fallen below 10% of the initial pool balance, should put the ratings-agency issues “to rest.”
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