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Private Student Loan Delinquencies Fall to Pre-Recession Low of 2.4%
Washington, D.C. (December 17, 2014) – Richard Hunt, president and CEO of the Consumer Bankers Association, issued the following statement after MeasureOne released “The Private Student Loan Report – Q3 2014.” The report is an update to previously released comprehensive studies of the private student loan market, and reveals continued positive performance trends.
“This latest report by MeasureOne demonstrates the sustained positive performance trends in the private student loan market. Most notably, early stage delinquencies of loans declined to 2.4 percent, a 22 percent improvement in Q3 2014 compared with Q3 2013. These are levels not seen since prior to the recession and is thanks to strong underwriting standards, school certification, and the use of cosigners. The private market, though small, is operating in a responsible way. CBA's members are proud of their partnership with students and their families in their effort to achieve their American Dream. This includes rolling out loan modification and refinancing programs to ensure students are able to repay their loans.
“As a reminder, private student lending makes up a tiny portion of the overall market - just 7.5 percent of all loans in repayment, or $91.8 billion. Contrast this with federal lending programs which represent 92.5 percent of the market and over $1.12 trillion in outstanding student debt.”
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.