MeasureOne’s Latest Student Loan Report Shows Pandemic Forbearance


SAN FRANCISCO, 9 Dec 2020 / PRNewswire / – MeasureOne today released its Private Student Loan Report, an industry-leading research report that leverages MeasureOne’s bespoke analytics services. This 15th edition of the report reaffirms that students and families continue to responsibly use private student loans to cover university costs. The vast majority of private student loan borrowers – 98% of families – continue to manage payments successfully and have fewer than 2% defaults annually. Additionally, private lenders continue to offer options for students and families in distress due to the COVID-19 pandemic, including postponing payments. These ongoing relief measures led to a deferral level of 7.0% in the second quarter, but this has since stabilized and is currently at 3.7%.

“Although the ongoing pandemic has presented students and families with financial challenges, private lenders continue to offer options for families in need,” said Elan Amir, CEO of MeasureOne. “It is encouraging that payment defaults and defaults remain at all-time lows and that deferral levels are stabilizing.

Private student loans, which are fully subscribed for credit and repayment checks, account for around 8.1% of total outstanding student loans in the third quarter of 2020. The remaining 91.9% of the $ 1.70 trillion Student loans are federal loans that are owned or guaranteed by the Ministry of Education.

The Private Student Loans Report (“Report”) reflects data as of the end of the third quarter of 2020 for private student loans and does not include data on federal student loans. Performance for this quarter shows encouraging recovery from the initial impact of the pandemic. In line with the previous quarters, the report finds that payment defaults and defaults remain at or near historical lows. At the end of the third quarter of 2020, the report found:

  • Granting of private student loans in the previous academic year [AYTD] 2019/20 was $ 10.14 billion, an increase of 4.98% compared to the previous year, and the AYTD 2020/21 (Q3 2020 only) was at $ 3.52 billion, a decrease of 12.4% from a year earlier.
  • Loans in distress (forbearance plus 30+ days past due as a percentage of repayment plus forbearance) decreased to 7.52%, compared to 9.98% at the end of Q1 2009).
  • Forbearance utilization fell 48% at the end of the third quarter of 2020 from the previous quarter’s high of 7.04% as borrowers were able to exit from the industry’s customer support programs. The current take of the forbearance remains increased above the normal range of 2% to 3% (and higher than the end of the third quarter of last year of 2.22%).
  • The early stage default rate (30 to 89 days past due) was 2.14% of the loan balances in repayment (excluding deferrals as usual) and similarly the late stage default rate (90+ days past due) was 0.66%. Both are near historic lows.
  • Annualized defaults were 1.26% of loan balances in repayment and are close to historic lows.
  • The total balance for student loans presented in the report was $ 64.87 billion (including internal school loans, but excluding consolidation, refinancing and parent loans).
  • 88.50% of the loans for Bachelor and Master loans accounted for 11.50% of the loans granted in AYTD 2019/20.

The semi-annual report includes continuous contributions from the six largest lenders and student loan holders: Citizens Bank, NA, Discover Bank, Navient, PNC Bank, NA, Sallie Mae Bank and Wells Fargo Bank, NA In addition to these members of the MeasureOne Private Student Loan Consortium, this report includes data from 9 other student lender contributors. Collectively, these contributors represent the vast majority of school loans 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

About MeasureOne
In September 2019, MeasureOne introduced a new developer platform to drive innovation and new customer applications based on academic data. MeasureOne is now the leading provider of API platforms for academic data and predictive analytics. MeasureOne products enable application developers from all industries, including academic, employment, lenders, marketing, residential and insurance, to leverage academic achievements to deliver compelling insights, products, and services to emerging consumers. MeasureOne is headquartered in San Francisco. For more information on MeasureOne, please visit www.measureone.com.

SOURCE MeasureOne

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