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Latest MeasureOne Data Confirms Private Student Loan Market Returning to Pre-Pandemic Norms

Latest MeasureOne Data Confirms Private Student Loan Market Returning to Pre-Pandemic Norms
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The vast majority of private student loan clients are making back regular payments, reviving innovations, using low tolerances, and default rates at or near historical lows.

San FranciscoAnd December 21, 2021 /PRNewswire/ — Today MeasureOne released its Semi-Annual Student Loan Report, an industry-leading research report that leverages MeasureOne’s custom analytics services. This 17th edition of the report confirms that the private student loan market has stabilized and returned to pre-pandemic standards: Students and families continue to manage payments effectively, the vast majority making regular payments despite the pandemic – and assets rebounded 5.8% up at the same time from last year. Additionally, stress levels have normalized and are currently at 2.4% of loans outstanding with less than 2% of NPLs per annum. Previously, tolerance levels increased as lenders helped families who had experienced hardship due to the pandemic.

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Private student loans, fully underwritten to assess creditworthiness and repayability, constitute approximately 7.6% of all outstanding student loans as of the second quarter of 2021. The remaining 92.4% of $1.72 trillion In student loans are federal loans owned or guaranteed by the Department of Education.

Ilan Amir, CEO of MeasureOne, said: “The fact that delinquency and defaults remain near historic lows while delinquency rates have returned to pre-COVID levels, reaffirms the robust underwriting and focus on ability to repay leading to client success. “. “This is a well-functioning market with strong safeguards to meet the challenges posed by the pandemic. In addition, the increase in origin operations – after a decline last year – could indicate that we are on the way to a recovery in terms of college enrollment.”

The Special Student Loan Report (the “Report”) reflects data as of the end of the third quarter of 2021 for private student loans and does not include federal student loan data. The total outstanding balance for private student loans reported in the report was 55.41 billion dollars (Including in-school loans but excluding consolidation, refinancing and parenting loans). Undergraduate loans amounted to 89.53% and graduate loans 10.47% originated in AYTD 2021/22.

The performance attributes for this quarter continue the positive recovery shown in the last report. As of the end of the third quarter of 2021, the report found:

  • Deductible use fell 65% at the end of Q3 2021 to 2.44% from a Q2 2020 peak of 7.04% as borrowers were able to exit industry customer relief programs.

  • The early stage late payment rate (30-89 days past due) was 2.22% of loan balances in repayment (excluding bearing as usual), similarly the late stage (90+ days past due) late payment rate was 0.94%. Both are close to historical lows.

  • The total annual discounted amount was 1.35% of the outstanding loan balances and is close to historical lows.

  • After a 17.3% decrease in issuances in AY 2020/21, issuances for the first quarter of fiscal year 2021/22 increased by 5.8% compared to the same quarter last year to $3.72B.

The semi-annual report includes ongoing contributions from the five largest lenders and holders of student loans: Citizens Bank, NA, Discover Bank, Navient, PNC Bank, NA and Sally May Bank. Additionally, the report includes data from 9 other lender contributing students. In all, these shareholders represent the vast majority of school facilities and the majority of private student loans outstanding in the United States.

The complete private student loan report is available for download at https://www.measureone.com/resources

About MeasureOne

MeasureOne, the leading consumer-enabled data exchange platform, is changing the way companies access and use consumer data. MeasureOne enables organizations to access a wide range of trusted consumer data while prioritizing privacy and consent. Through the MeasureOne platform, companies can confidently and reliably integrate and verify consumer information such as income, employment, education, and student enrollment. MeasureOne provides flexible implementation options for businesses to easily take advantage of the data a consumer allows, from a developer-friendly API to third-party integration. MeasureOne is headquartered in San Francisco. For more information about MeasureOne, visit www.measureone.com.

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