The size of the student loan ABS subsector continues to shrink as the broader universe expands to record-highs, according to Fitch Ratings in a follow-up to its 'College Tuition Bubble' report from last year.
Outstanding student loans totaled
Student loan ABS issuance has fallen significantly in recent years, to
Government-backed student debt still makes up the vast majority of student loans. However, private loan issuance is showing signs of bouncing back after languishing the last four years. And the compositional makeup of these loans has improved, according to Wan.
'Private student loan ABS transactions issued after the financial crisis are benefiting from significantly higher credit enhancement and more stringent underwriting standards on the underlying loans,' said Wan. 'As the economy recovers, performance for both federal and private programs stands to improve.
'Student Loan ABS and the College Tuition Bubble' is available at 'www.fitchratings.com' or by clicking on the above link.
Additional information is available at 'www.fitchratings.com'.
Source: Fitch Ratings
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