Measure One’s latest private student loan report shows tolerance levels associated with the pandemic have stabilized, while delinquencies and defaults remain at historically low levels

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SAN FRANCISCO, July 6, 2021 / PRNewswire / – MeasureOne today released the Private Student Loans Report, an industry-leading research report using MeasureOne’s specialized analytics services. This 16th edition of the report reaffirms that students and families continue to manage payments efficiently – the vast majority have returned to regular payments despite the pandemic – and less than 1% of loans are not repaid annually. Tolerance levels have increased thanks to lenders’ efforts to help families struggling with the pandemic, but these levels have stabilized since then and now represent 3.1% of repayable loans.

“While the ongoing pandemic has created financial problems for students and families, private lenders have stepped up to help their clients during this unprecedented time,” said Elan Amir, CEO of MeasureOne. “It is gratifying to see so many students and their families return to regular payments, a sign that recovery is just around the corner. In addition, the fact that delinquencies and defaults remain at historically low levels and abstinence rates are stabilizing further confirms how strong underwriting and a focus on ability to pay leads to customer success. “

Private student loans, which are fully collateralized for credit and solvency assessments, represent approximately 7.9% of the total outstanding student loans as of Q1 2021. The remaining 92.1% of the total student loans. $ 1.73 trillion student loans include federal loans owned or guaranteed by the Department of Education.

The Private Student Loans Report (the “Report”) reflects private student loans at the end of the first quarter of 2021 and does not include federal student loans. This quarter’s performance numbers show a promising recovery from the initial impact of the pandemic. As of the end of the first quarter of 2021, the report says:

  • Sources of private student loans in the 2019/20 academic year were $ 10.14 billion, which is 4.98% more compared to the same period last year, and for the current academic year [AYTD] 2020/21 (from Q3 2020 to Q1 2021) was at $ 7.63 billion, which is 15.2% less than last year.
  • Abstinence use fell 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 withdraw from industry client assistance programs.
  • The early-stage delinquency rate (30 to 89 days overdue) was 1.73% of the outstanding loan balance at repayment (excluding deferral, as usual), and similarly the late-stage delinquency rate (90+ days overdue) was 0.73 %. Both indicators are close to historical lows.
  • On an annualized basis, gross write-offs accounted for 0.97% of repayable loan balances and are at an all-time low.
  • The total outstanding private student loan debt reported in the Report was $ 56.63 billion (including school loans, but excluding consolidation, refinancing, and parental loans).
  • Undergraduate loans accounted for 88.73% and graduate loans accounted for 11.27% of loans issued in AYTD 2019/20.

The biennial report includes ongoing contributions from 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 Loan Consortium, this report includes data from 9 other student loan contributors. Overall, these contributors represent the vast majority of schools and most of the private student loans outstanding in the United States.

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

About MeasureOne

MeasureOne, the leading consumer permissioned data exchange platform, is changing the way consumer data is accessed and used. MeasureOne enables organizations to access a wide range of trusted consumer data while prioritizing privacy and compliance. With the MeasureOne platform, companies can confidently and reliably integrate and validate consumer information such as income, employment, education, and student enrollment. MeasureOne offers enterprises flexible implementation options to easily leverage consumer-enabled data, from developer-friendly APIs to third-party integrations. MeasureOne is headquartered in San Francisco… For more information on MeasureOne visit www.measureone.com

SOURCE MeasureOne

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