Skip to content
More from
Bloomberg
Fixed Income
relates to U.S. Stocks Decline; Bonds Fall, Dollar Rises: Markets Wrap
relates to Ecuador Bonds Rally on $4.2 Billion IMF Deal to Serial Defaulter relates to Poloz Says Bank of Canada Rate Hike Path ‘Highly Uncertain’ relates to Michael Hasenstab Won't Give Up His Big Bet Against Treasuries relates to U.S. Existing Home Sales Fall to Slowest Pace Since Late 2015 relates to Life Insurers’ CLO Investments Could Pose Big Risks, Fitch Says relates to Oman's Surprise Bond-Sale Retreat Shrinks Premium to Bahrain relates to ECB Urged Swift Analysis, No Hasty Decision on New Lending relates to Zion Prayers Align With This Rally’s Destiny: Taking Stock relates to Riksbank Economist Goes Looking for Phillips Curve and Finds It relates to U.S. Stocks Decline; Bonds Fall, Dollar Rises: Markets Wrap
relates to Ecuador Bonds Rally on $4.2 Billion IMF Deal to Serial Defaulter relates to Poloz Says Bank of Canada Rate Hike Path ‘Highly Uncertain’ relates to Michael Hasenstab Won't Give Up His Big Bet Against Treasuries relates to U.S. Existing Home Sales Fall to Slowest Pace Since Late 2015 relates to Life Insurers’ CLO Investments Could Pose Big Risks, Fitch Says relates to Oman's Surprise Bond-Sale Retreat Shrinks Premium to Bahrain relates to ECB Urged Swift Analysis, No Hasty Decision on New Lending relates to Zion Prayers Align With This Rally’s Destiny: Taking Stock relates to Riksbank Economist Goes Looking for Phillips Curve and Finds It relates to U.S. Stocks Decline; Bonds Fall, Dollar Rises: Markets Wrap
relates to Ecuador Bonds Rally on $4.2 Billion IMF Deal to Serial Defaulter relates to Poloz Says Bank of Canada Rate Hike Path ‘Highly Uncertain’ relates to Michael Hasenstab Won't Give Up His Big Bet Against Treasuries relates to U.S. Existing Home Sales Fall to Slowest Pace Since Late 2015 relates to Life Insurers’ CLO Investments Could Pose Big Risks, Fitch Says relates to Oman's Surprise Bond-Sale Retreat Shrinks Premium to Bahrain relates to ECB Urged Swift Analysis, No Hasty Decision on New Lending relates to Zion Prayers Align With This Rally’s Destiny: Taking Stock relates to Riksbank Economist Goes Looking for Phillips Curve and Finds It
markets

Here’s How the Student Loan Landscape Has Changed Since 2013

Here’s How the Student Loan Landscape Has Changed Since 2013

relates to Here’s How the Student Loan Landscape Has Changed Since 2013

The latest numbers on student loans were all too familiar: Outstanding debt hit another record and delinquency rates spiked in the third quarter, according to Federal Reserve data.

What has changed, however, is who is doing the lending. Five years ago, big banks like JPMorgan Chase & Co. and Bank of America were players in the student loan business.

Today, the government now makes about 90 percent of all student loans. Financial institutions in the S&P 500 have sliced their loans by $22.5 billion, or 35 percent, in the five years since 2013.

The switch was due to the financial crisis and a new law that allowed the government to directly lend to students. JPMorgan and Bank of America ended their student loan programs entirely, while other banks saw volumes fall substantially.

Exodus From Education

Private lenders haven’t disappeared. Discover Financial Services and regional banks like SunTrust Banks Inc. have stepped up their activity, offering loan consolidation or financing to students whose borrowing needs surpass the federal limit.

“Local regional banks tend to be willing to take on more risk,” said Mark Kantrowitz, vice president of research at Savingforcollege.com. “For the big banks, it was a small piece of their business that was easy to give up.”

— With assistance by Nicholas Zambrio, and Amanda English