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CBA Statement on Private Student Loan Performance
CBA’s President and CEO Richard Hunt issued the following statement after the New York Fed issued its Quarterly Report on Household Debt and Credit for the fourth quarter of 2014.
“We agree with the New York Fed – a college degree is a worthy investment. CBA's members are proud to partner with students and their families to achieve this dream. Private student loans play a small but important role in the overall marketplace covered by the Fed Report, and are performing well. Over 97% of private loan borrowers are successfully repaying their loans on-time.
The private market represents about 7.5 percent of all loans in repayment, or $91.8 billion. In contrast, the federal lending programs which represent 92.5 percent of the market accounts for $1.12 trillion in outstanding student loan debt.
A recent report by MeasureOne demonstrates the sustained positive performance trends in the private student loan market. Most notably, early stage delinquencies of loans declined to 3 percent, a 20 percent improvement in Q3 2014 compared with Q3 2013 and the annualized charge-off rate for Q3 2014 is only 2.4 percent. The report also highlights other positive private loan performance trends.”
Founded in 1919, the Consumer Bankers Association (CBA) is the trade association for today's leaders in retail banking - banking services geared toward consumers and small businesses. The nation's largest financial institutions, as well as many regional banks, are CBA corporate members, collectively holding well over half of the industry's total assets. CBA’s mission is to preserve and promote the retail banking industry as it strives to fulfill the financial needs of the American consumer and small business.