LendKey’s Student Loan Refinance Report paints a bright picture for the student refi market.
There is plenty of opportunity for banks and credit unions on one side and for borrowers, who save an average of 2.2 per cent in annual interest expense after refinancing.
“The LendKey report found that students who refinance significantly reduced their student loan debt over the life of the loan, a substantial amount considering the average student debt is $37,000 for the class of 2016,” LendKey SVP of credit risk & analytics Salil Mehta said. “The overall health of the student refi industry proves how beneficial such products are to financial institutions and their millennial customers.
Data gleaned from seven years of data and 275 LendKey partners across America showed $770-pus million of originations and an outstanding loan balance greater than $600 million. The average borrower ages are 28.7 (undergraduate degree) and 34.3 (post graduate). After comprising 20 per cent of borrowers in 2011, graduate degree borrowers are now 30 per cent of the total. Delinquencies have dropped to 2.2 per cent(sub-90 days) and 0.5 per cent (90-plus).