A report from Citi Global Perspectives and Solutions, titled "Education: Back to Basics" says student loan default and delinquency rates are down from 14.7% in 2013 yet still high at approximately 11% which is comparable to peak mortgage crisis delinquency rates of 11.5%; report also provides additional comparisons of the current state of the student loan market to the mortgage market crisis; notes that the student loan market overall is $1.41 trillion compared to $8.6 trillion for mortgages, making high student loan defaults less significant than a mortgage market crisis. Source
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In 2016 the student loan securitization market increased compared to 2015 and in 2017 the market has already been off to a good start; the panelists discuss the reasons for this trend of increased issuance including knowledge, confidence and a default rate of just 3 bps; in the case of the refinance product, supply has created the demand; panel also comments on the current regulatory landscape and the Federal Family Education Loan (FFEL) Program which guarantees student loans; on the whole loan side, the panelists talk about the interest from investors, why they are deploying capital to the student loan market and the kind of returns they can expect; finally the panelists talk about risk retention and the importance of fintech in the origination of assets. Source