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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