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MeasureOne Report Finds Record Low 3% Default Rate in Private Student Loans
Washington, D.C. (July 29, 2014) – Richard Hunt, president and CEO of the Consumer Bankers Association, issued the following statement after MeasureOne released “The Private Student Loan Report – July 2014.” http://www.cbanet.org/documents/2014-07-29%20MeasureOne%20Private%20Student%20Loan%20Performance%20Report.pdf The report is an update to a previously released comprehensive study of the private student loan market, and reveals continued positive performance trends.
“This latest report by MeasureOne demonstrates the continued positive performance trends in the private student loan market. Most notably, early stage delinquencies of loans declined 17 percent to 2.97 percent and serious delinquencies declined 13 percent to 2.55 percent. This is thanks to strong underwriting standards, school certification, and the use of cosigners. The private market, though small, is operating efficiently and successfully for both borrowers and lenders.
“On the other hand, the federal student lending program default rate is five times higher at 15 percent, with students and taxpayers holding over a trillion dollars in debt as a result.”
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 two-thirds 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.
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