Loan Servicing Statistics


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Loan Servicing Statistics 2023: Facts about Loan Servicing outlines the context of what’s happening in the tech world.

LLCBuddy editorial team did hours of research, collected all important statistics on Loan Servicing, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

Are you planning to form an LLC? Maybe for educational purposes, business research, or personal curiosity, whatever the reason is – it’s always a good idea to gather more information about tech topics like this.

How much of an impact will Loan Servicing Statistics have on your day-to-day? or the day-to-day of your LLC Business? How much does it matter directly or indirectly? You should get answers to all your questions here.

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On this page, you’ll learn about the following:

Top Loan Servicing Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 44 Loan Servicing Statistics on this page 🙂

Loan Servicing “Latest” Statistics

  • 13% of students take out loans for school from private institutions like banks or credit unions.[1]
  • 13,900 student loan complaints were made about federal student loans, with the majority of them involving interactions with lenders or servicers.[1]
  • 15% of American people say they still owe money from their college studies and 7% report unpaid debts for graduate school.[1]
  • Subsidized Stafford loans make up about 18.6% of the total federal debt and unsubsidized Stafford loans account for 34.2%.[1]
  • 19% of borrowers with unpaid student loans for their own schooling carry credit card balances on behalf of other students and 12% have credit card debt.[1]
  • In addition to their student loan debt, 24% of indebted student borrowers also owe money for their education.[1]
  • Home equity loans were utilized by 4% of borrowers with debt to fund their own schooling.[1]
  • 11% of borrowers utilized a different kind of loan to fund their own schooling.[1]
  • Grad plus loans, which go to graduate or professional students, account for 5% of student loan debt.[1]
  • 55% of Americans favor canceling federal student debts up to $10,000 per borrower and up to a $50,000 cancellation per borrower supported by 47%.[1]
  • Among those who firmly favor student debt forgiveness, 56% earn less than $50,000 yearly and 14% earn more than $100,000.[1]
  • 60.5% of all graduates with graduate degrees have federal student loan debt and 54.2% of undergraduate students are in debt.[1]
  • Parent plus loans taken out by parents on behalf of their kids account for 64% of student loan debt.[1]
  • 67,00 complaints were made about private loans, the majority of which were over dealings with the lender or servicer.[1]
  • According to statistics, loan payments were from 24% of borrowers who attended private for-profit colleges and 7% of borrowers who attended private nonprofit institutions.[1]
  • Students who are still enrolled in school are responsible for 8% of the total student loan debt.[1]
  • Home equity loans were utilized by 9% of debtors who took out loans to pay for the education of their kids or grandchildren, while another loan type was used by 11% of them.[1]
  • 88% of borrowers owe money for the education of their children or grandchildren, while 96% of borrowers have student loan debt that is still unpaid.[1]
  • The typical student borrowed 21.5% less in federal loan funds in the 2019–20 academic year than they did in 2009 after accounting for inflation.[1]
  • 92.7% of all student loan debt in 2022 was federal and private borrowers account for 73%.[1]
  • 24% of student loan complaints were filed with American education services and the Pennsylvania higher education assistance agency.[1]
  • American Indian and Alaska Native students are the least likely to borrow privately among all postsecondary students (26%).[1]
  • Female students are 49.9% more likely than male students with associate’s degrees to take out federal student loans.[1]
  • Black or African American students are the most likely to take out federal loans among bachelor’s degree holders, at 76.1%.[1]
  • Graduate students who incur debt for graduate school make up 22% of white students and 40% of black students.[1]
  • For those with a master’s degree, 60% have federal student loan debt from graduate school, whereas 52.8% have debt from undergraduate study.[1]
  • Among individuals with doctorates in professional fields, 74.5% had outstanding federal student loan debt from graduate school and 73.5% from undergraduate study.[1]
  • The sum of all federal student loans climbed by 76.63% between 1995 and 2022, or 45.1% annually or 11.3% quarterly.[1]
  • Student loan debt in repayment fell by 82% during the second and third fiscal quarters of 2020, but debt in forbearance rose by 375%.[1]
  • By the end of July, 11.2% of persons with student loan debt said they had missed at least one payment so far this year.[1]
  • By the age of 30, 21% of those with a bachelor’s degree and 37% of those with an associate’s degree had defaulted on at least one student loan payment.[1]
  • Doctors of Medicine are the ones most likely to have student loan debt, with graduate school debt at 81% and undergraduate school debt at 80.3%.[1]
  • The amount owed on federal student loans decreased by 02.7% in the first quarter of the current fiscal year, which is the largest quarterly decrease in at least ten years.[1]
  • 48% of black student borrowers and 17% of white student borrowers still owe more than they borrowed four years after graduation.[1]
  • Compared to over 30% of borrowers having loans directly from the department of education, fewer than 6% of eligible FFELP borrowers in 2015 were engaged in income.[1]
  • In 2017, 68% of the class of 2016’s bachelor’s degree holders had debt from federal student loans totaling 30.8.[1]
  • 9% of borrowers who attended public colleges were in arrears with their student loan payments as of May 2020.[1]
  • 75.3% of private student loans were being repaid as of the beginning of 2020, while 20% were being deferred.[1]
  • The total amount owed on student loans has climbed over the last ten years at an average quarterly pace of 14.8%.[1]
  • The CARES Act, which was introduced during the second and third fiscal quarters of 2020, provided relief from student loan debt for an estimated 35 million students.[1]
  • Black or African American student borrowers typically owe 6% more than they borrowed, compared to 10% less for white or caucasian students.[1]
  • There are 28.2% more female supporters of up to $10,000 in student debt forgiveness than male supporters.[1]
  • Even though 30% of college students borrow money from the federal government, their combined borrowing makes up 92.6% of all student loan debt.[1]
  • Private loans between 25% and 39% have greater delinquency rates than federally supported loans between 11% and 17%.[2]

Also Read

How Useful is Loan Servicing

Loan servicing refers to the management of a loan after it has been originated. This includes collecting payments, maintaining borrower records, and enforcing the terms of the loan agreement. Loan servicing companies play a crucial role in ensuring that borrowers meet their financial obligations and that lenders receive the payments they are owed.

One of the primary benefits of loan servicing is that it provides borrowers with a single point of contact for all of their loan-related needs. Instead of having to deal with multiple parties, borrowers can turn to their loan servicer for guidance and assistance. This can help streamline the loan management process and make it easier for borrowers to stay on top of their financial responsibilities.

Loan servicing also offers benefits for lenders. By outsourcing the management of their loans to a third-party servicer, lenders can free up valuable time and resources to focus on other aspects of their business. Additionally, loan servicing companies often have the expertise and technology to effectively manage large loan portfolios, allowing lenders to maximize their returns and minimize risks.

Furthermore, loan servicing can help prevent delinquencies and defaults by providing borrowers with the support they need to stay current on their payments. Loan servicers can work with borrowers to explore alternative payment options, negotiate loan modifications, and provide financial counseling. By taking a proactive approach to loan management, servicers can help borrowers navigate challenging financial situations and avoid the negative consequences of defaulting on a loan.

In addition, loan servicing plays a vital role in ensuring compliance with regulatory requirements. Servicers are responsible for adhering to federal and state laws governing loan servicing practices, as well as industry standards set forth by organizations such as the Consumer Financial Protection Bureau. By working with a reputable loan servicing company, lenders can rest assured that their loans are being managed in a compliant and ethical manner.

While loan servicing offers many benefits, it is important for borrowers and lenders to choose a reputable and reliable servicer. Not all loan servicing companies are created equal, and working with an unscrupulous or inexperienced servicer can result in negative consequences for all parties involved. It is essential to do thorough research, read reviews, and ask for references before selecting a loan servicing company.

Overall, loan servicing plays a crucial role in the financial ecosystem by providing borrowers and lenders with the support they need to effectively manage their loans. By outsourcing the management of loans to a third-party servicer, individuals and businesses can benefit from streamlined processes, expert guidance, and compliance with regulations. Loan servicing is a valuable tool that can help borrowers achieve their financial goals and lenders maximize their returns.

Reference

  1. educationdata – https://educationdata.org/student-loan-debt-statistics
  2. consumerfinance – https://www.consumerfinance.gov/about-us/newsroom/cfpb-releases-report-on-mortgage-servicing-metrics/

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