Sallie Mae Reports A Pop In Private Student Loans, Bets College Costs Will Rise

Career College Central summary:

  • Last week, Sallie Mae reported an 11% increase in loan originations in the third quarter compared to last year. The company also said its private education loan charge-off rates dropped to 2.6 percent, the lowest level in five years.
  • Sallie Mae provides private student loans and also services loans for third parties including the federal government. In May, the company made a big announcement saying it would split itself into two: a private student loan business and a separate  government-backed loan servicing business. The former is where Sallie Mae is making its bet as it expects the need for private loans to continue to rise.
  • In the third quarter the company saw an 11% increase in student loan originations , or $1.5 billion. Delinquencies of 90+ days dropped and it said provision for private education loan losses were$195 million, down from $252 million.

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