DBRS Releases Private Student Loan Report

DBRS today introduced the DBRS U.S. private student loan performance report that contains the first indices that benchmark loan performance metrics for private student loan ABS sector. The indices measure three key metrics, forbearance rates, delinquency rates and gross default rates, for all 36 private student loan ABS deals that publicly report performance. The report includes as well a vintage analysis for the performance metrics and commentary and analysis on the indices and the private student loan sector in general. The commentary that was just published details the data set compilation as well as calculation methodologies applied to develop the indices. It also includes the full report for the second quarter of 2007. "Unlike FFELP student loans, private student loans do not benefit from a federal guarantee on defaulted loans. As a result, investors of private student loan ABS should monitor the performance of the underlying collateral pools very carefully," says David Laterza, vice president at DBRS. "The DBRS U.S. Private Student Loan Performance Report is designed to assist investors in assessing the performance of private student loan collateral in the rapidly developing private loan sector."