Although total student borrowing fell 6%, private student loan demand increased by almost 9%. This increase ihas a positive impact on the private SLABS supply as well as issuer diversification going forward, according to a Deutsche Bank report published today.
Data release from the College Board showed that nonfederal student loan volume increased by almost 9% YOY, to $8.8 billion in 2012-13 academic year from $8.1 billion in 2011-12. Students and parents borrowed a total of $110.3 billion during the 2012-13 academic year.
Sallie Mae, the largest private student lender, reported an 11% YOY increase in private student loan origination in Q3 2013, to $1.5 billion from $1.3 billion. The lender projects full-year 2013 originations to reach about $3.7 billion.
Sallie Mae has been the sole issuer of private SLABS since 2010.