Drop in Late Payment Rates

Great job everyone! It seems that more folks are paying their student loans on time. TransUnion, a credit reporting agency, recently published numbers showing that the rate at which people are delinquent on their student loans decreased during the last quarter of 2009.

According to the TransUnion, 30-day student loan delinquency rates dropped 4.9%, and 90-day delinquency rates dropped 6.6%. Despite this bright outlook, every year more and more people fall behind on their student loan payments.

Thomas Morrissey, a TransUnion representative, predicts that even though the market for private student loans flatlined, it will rebound because of the increasing cost of higher education.

While it is great that people are able to handle their debt better, the idea that private loans will regain their market-share is disturbing. How do you think SponsorChange can influence this area of the student loan industry?

Sources:

1. The Chicago Sun-Times

2. Student Lending Analytics Blog

3. Download 04.27.10 – USIS – SL DELINQUENCY

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