Student Loan Market

[Pages:20]Student Loan Market

Financial Empowerment Roundtable

February 20, 2019 Presented By Bonnie Latreille



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The Student Loan Market

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Nationwide growth in student debt

$1,800,000

$1,600,000

$1.56 trillion

Outstanding Student Debt in Millions

$1,400,000

$1,200,000

$1,000,000

$800,000

$1 trillion in growth in a decade

$600,000

$400,000

$200,000

$2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: Federal Reserve Board



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Market expanding, balances climbing

500% 400% 300% 200% 100%

0%

4

473%

192% 96%

Average Borrower Balances Source: Federal Reserve Bank of New York



Number of Borrowers

Total Outstanding Student Debt

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Increasing burden on household balance sheets

Change in household debt (2008-2018)

152%

58%

4%

-1%

-2%

Mortgage

-38% HE Revolving

Source: Federal Reserve Bank of New York (2018 Q4)

Auto Loan

Credit Card Student Loan

Other

8% Total

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Student loan delinquency rates remain stubbornly high

Percent of Total Balance Outstanding 90+ Days Delinquent by Loan Type

Source: Federal Reserve Bank of New York

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Share of student loan market, in billions

Perkins Loan, $7.6

Private Loan, $113.0

FFELP Loan, $295.0

Source: Federal Reserve Board; US Dept. of Education (2016)

Direct Loan, $1,104.0

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For-Profit Schools are only a small part of the market

Direct Loan Originations by School Sector

13.4 million

13.1 million

3.71 million

2012-2013

Source: US Dept. of Education

3.29 million 2013-2014

12.56 million

12.14 million

2.96 million

2014-2015 Academic year

2.61 million 2015-2016

11.5 million

Public/Private For-Profit

2.2 million 2016-2017

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