Investor Presentaiton
Billions, $
At $1.5 trillion in student loans, the federal government
is the largest non-mortgage consumer lender
Federal loan interest rates, limits and terms are set by Congress.
All federal loans are issued directly by the U.S. Department of Education since 2010 when federally guaranteed
loans ended.
Federal loans have no traditional underwriting, and no truth in lending disclosures.
In AY 19-20, ED disbursed $88B in student loans, a decline from peak of $125B in AY 10-11.
The number of federal borrowers is up by 52% since 2007.
Total student loan originations, by type
110
Federal
100
student
90
loans
80
70
60
50
40
30
20
10
0
2006
2007
2008
2009
2010
2011
2012
2013
Private
education
loans
2014
2015
Academic year ending in...
2016
2017
2018
2019
2020
Ownership distribution of student loans
The increasing dominance
of federal student loan
originations versus private
FFELP
guarantors
1.7%
Private
8%
FFELP
loans reflects the federal
owned
government's massive
privately
8.9%
involvement in student
Perkins
loans: it owns or
guarantees 92% of the
$1.6 trillion outstanding in
student loans.
0.4%
Dept of
Education
loan
81%
Source: Outstanding data as of 9/30/19 from FSA Data Center and Federal Reserve, Consumer Credit-G. 19, Nov. 2019, originations from College Board, "Trends in Student Aid 2019"
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92% of student
loans outstanding
are owned or
guaranteed by the
federal
government.
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