MeasureOne’s latest private student loan report reveals pandemic forbearance levels have stabilized while defaults and defaults remain at historically low levels
SAN FRANCISCO, July 6, 2021 / PRNewswire / – MeasureOne today released its Private Student Loans Report, a cutting-edge research report leveraging MeasureOne’s custom analysis services. This 16th edition of the report once again confirms that students and families continue to effectively manage payments – with an overwhelming majority returning to regular payments despite the pandemic – and less than 1% of overdue loans each year. Forbearance levels have increased due to efforts by lenders to help families who have struggled with the pandemic, but these levels have since leveled off and currently stand at 3.1% of loans in repayment. .
“As the ongoing pandemic has created financial challenges for students and families, private lenders have stepped up to help their clients during this unprecedented time,” said Elan Amir, CEO of MeasureOne. “It’s encouraging to see so many students and families starting to make regular payments again, a sign that a recovery is in sight. In addition, the fact that delinquency and defaults remain at historically low levels and that abstention levels are stabilizing, reaffirms the extent to which underwriting and focusing on repayment capacity leads to customer success.
Private student loans, which are fully underwritten to assess creditworthiness and repayment capacity, represent about 7.9% of total student loans outstanding in the first quarter of 2021. The remaining 92.1% of the $ 1.73 trillion Student loans are federal loans held or guaranteed by the Department of Education.
The Private Student Loans Report (“Report”) reflects data at the end of the first quarter of 2021 for private student loans and does not include federal data on student loans. Performance attributes for this quarter show a promising recovery from the initial impact of the pandemic. At the end of the first quarter of 2021, the report revealed:
- The origins of private student loans in the full academic year 2019/20 have been $ 10.14 billion, up 4.98% year-on-year, and the cumulative over the school year [AYTD] 2020/21 (Q3 2020 to Q1 2021) was at $ 7.63 billion, a decrease of 15.2% year-on-year.
- Forbearance use fell from 56% at the end of the first quarter of 2021 to 3.12% from a peak of 7.04% in the second quarter of 2020 as borrowers were able to exit aid programs to customers in the sector.
- The early stage default rate (30-89 days late) was 1.73% of outstanding loan balances (excluding abstentions as usual), and similarly, the late-stage default rate (over 90 days late) was 0.73%. Both are near historic lows.
- Annualized gross write-offs represented 0.97% of outstanding loan balances and are at an all-time low.
- The total outstanding balance of private student loans represented in the report was $ 56.63 billion (including school loans but excluding consolidation, refinancing and parent loans).
- Undergraduate loans accounted for 88.73% and graduate loans 11.27% of loans were from AYTD 2019/20.
The semi-annual report includes the ongoing contributions of the five largest lenders and student loan holders: Citizens Bank, NA, Discover Bank, Navient, PNC Bank, NA and Sallie Mae Bank. In addition to these members of the MeasureOne Private Student Loans Consortium, this report includes data from 9 other student lenders. In total, these contributors represent the vast majority of school arrangements 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
MeasureOne, the leading consumer-authorized 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. Through MeasureOne’s platform, businesses can confidently and reliably integrate and verify consumer information such as income, employment, education, and student enrollment. MeasureOne offers flexible implementation options that make it easy for businesses to leverage data authorized by consumers, from a developer-friendly API to third-party integrations. MeasureOne is headquartered at San Francisco. For more information on MeasureOne, visit www.measureone.com.