Student Lending Analytics Blog

This Week in Financial Literacy: Private Student Loan Growth at Sallie Mae, Fed Data Shows Persistently High Delinquency Rates

We'll start this week with student loan news and go from there...

Meanwhile, Sallie Mae continues to grow their private loan originations which they reported as of the end of the 3rd quarter were up 21% year-to-date and 29% in the 3Q (a seasonally strong quarter) as compared to last year.   Other highlights from the call:

• Growth is being driven by market share gains vs. overall market growth:  "appears more like market share gains than market size gains."

• Borrowers have strong credit profiles:  "FICO scores in excess of -- an average in excess of 750 (752) and with more than 90% cosigners (94%)."

I'm Back......What's Happening With Financial Literacy?

This weekly (or perhaps more frequent) compilation of tips, trends and news is intended to help readers improve their level of financial literacy.  Have any ideas for stories or topics feel free to send them along to me at [email protected].  I hope you enjoy it!

SmartMoney provides a top ten list of what student loan companies won't tell you including "you may be in over your head" as default rates on loans increase:

"Nearly 10% of federal student-loan borrowers defaulted during the two years ended Sept. 30, 2010, according to the Department of Education, up from 7% in 2008. Private student loan defaults are rising also: Around 5.4% of private student loans defaulted during the second quarter of this year, up from 4.5% a year ago, according to Moody's Investors Service Private Student Loan Indices, which tracks loans."

On the subject of increasing student loan defaults, Penn State is considering bolstering their financial literacy offerings: