New MeasureOne Report Shows Continued Strong Performance Trends For Private Student Loans

Delinquencies at Lowest Levels since 2009

Significant 5-Year Improvement Across all Nine Performance Measures

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Dec 17, 2014, 08:00 ET

SAN FRANCISCO, Dec. 17, 2014 /PRNewswire/ -- MeasureOne, a specialized data company focused exclusively on student loan data, today released the third edition of its private student loan performance report. The Private Student Loan Performance Report –Q3 2014 shows continued positive trends in repayment, delinquencies, and charge-offs for private student loans in Q3 2014. The report illustrates that since their peak in Q3 2009, serious delinquencies declined 52 percent and annualized charge-offs declined 74 percent. In addition, loans in repayment status grew from 56 percent to 74 percent.

The private student loan performance report analyzed loan data from MeasureOne's Private Student Loan Consortium, a group of the nation's largest active private student lenders and holders of private student loans. The group includes: Citizens Bank N.A.; Discover Bank; Navient; PNC Bank, N.A.; Sallie Mae, and Wells Fargo Bank, N.A.

Together, the six Consortium participants represent approximately 70 percent of the entire private student loan market. At $91.8 billion, the private student loan market comprises 7.5 percent of the overall $1.22 trillion student loan market.

Among the report's highlights:

Early-stage delinquencies (30 to 89 days past due) fell to 3.2 percent, a 19 percent improvement in Q3 2014 compared with Q3 2013.
Serious delinquencies (90+ days past due) fell to 2.4 percent, a 22 percent improvement in Q3 2014 compared with Q3 2013.
Annualized charge-off rates declined to post credit-crisis lows of 2.4 percent, a 22 percent improvement in Q3 2014 compared with Q3 2013.
At the end of Q3 2014, approximately 74 percent of outstanding private student loans for the six participants were in repayment status.
Outstanding balances for the six Consortium participants grew $1.7 billion, or 3 percent, from Q3 2013 to Q3 2014.

"The continuous improvement in private student loan repayment performance has largely gone unnoticed," said Dan Feshbach, MeasureOne founder and chief executive officer. "Diligent underwriting practices, with particular attention on the ability to repay, enabled the private student loan market to again improve performance and continue to help more families finance higher education."

In addition to strong underwriting standards, the use of cosigners and school certification by the six Consortium participants continues to contribute to the improved performance of private student loans. The report showed that more than 94 percent of newly originated undergraduate private student loans included a cosigner in the 2014-15 academic year, and that rate has been above 90 percent since the 2009-10 academic year. School certification has been universally adopted for both undergraduate and graduate private student loans. Under this process, the lender obtains a certification from the school of the student's needed loan amount before disbursing proceeds directly to the school. The certification and disbursement process serves as an important protection against over-borrowing.

The full Private Student Loan Performance Report – Q32014 is available for download at www.measureone.com.

About MeasureOne
MeasureOne, San Francisco, collects, analyzes, and distributes student loan data to provide insight into the nation's $1.2 trillion student loan debt. The company created the industry's only standardized database of more than 500 securitizations and developed the nation's largest private student loan data cooperative of contributed loan data from the largest lenders and holders of private student loans. MeasureOne was founded by Dan Feshbach, creator of the LoanPerformance databases, the mortgage industry's largest cooperative databases, which are now part of Corelogic, Inc. For more information about MeasureOne, visit www.measureone.com.

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SOURCE MeasureOne