The Early-stage Delinquency rate (30-89 days past due) is 2.75% of loans in repayment. At end-Q1 2018, it is 26.27% lower compared to five years ago. For undergraduate loans, it is 2.86% at end-Q1 2018, compared to the peak rate of 8.64% at end-Q4 2008. For graduate loans, it is 1.80% at end-Q1 2018, compared to the peak rate of 3.97% at end-Q4 2009.
The Late-stage Delinquency rate (90 days or more past due) is 1.49% of loans in repayment. At end-Q1 2018, it is 51.26% lower compared to five years ago. Both undergraduate and graduate late-stage delinquencies are at the lowest levels for a Q1. For undergraduate loans, it is 1.58% at end-Q1 2018, compared to the peak rate of 7.28% at end-Q2 2009. For graduate loans, it is 0.78% at end-Q1 2018, compared to the peak rate of 2.71% at end-Q1 2010.
Annualized Gross Charge-off rate is 1.77% of loans in repayment. At under 2%, this is the lowest charge-off rate in any quarter since 2008. 51.10% lower compared to five years ago, when charge-off rate was 3.62% (at the end of Q1 2013).
At end-Q1 2018 as a share of Total Outstanding loan balances, loans in Repayment were 74.06%, loans in Deferment were 21.11%, loans in Forbearance were 2.52%; and loans in Grace were 2.31%.
The Total Outstanding balance for private student loan participants of this report was $67.12 B. Driven in part by loan purchases from outside the participants of the MeasureOne PSL Report. Undergraduate loans are 88.31% of outstanding balance, while graduate loans accounted for 11.69%.
Private student loan originations in AYTD 2017/18 (Jul 2017 to Mar 2018) were $7.54 B. Of this total, undergraduate loans account for 89.17% and graduate loans account for 10.83%.
91.74% of newly originated undergraduate private student loans had a cosigner in AYTD 2017/18, compared to AY 2008/09 when it was 74.55%. The corresponding share for graduate loans in AYTD 2017/18 was 62.73%.
MeasureOne has created the Private Student Loan Consortium, a data cooperative of the nation’s largest lenders and holders of private student loans, including members from the Education Finance Council.
Interested in participating in this initiative for increasing transparency in the Private Student Loan market? Contact us here.