What is Private Student Loans Market?
Private student loans are issued by banks, financial institutions, or online lenders to the students for paying their educational and living expenses. The increasing number of student population and the emerging trend of studying abroad for quality education will accelerate the growth of the private student loans market as international students are not eligible for federal loans. However, declination in the interest rate of private student loans will boost the market. From the interest rate segment, fixed-rate loans are highly selected by the borrowers as it has relatively low interest and rates don’t change over time.
Highlights from Private Student Loans Market Study
Attributes | Details |
---|
Study Period | 2018-2028 |
Base Year | 2022 |
Unit | Value (USD Million) |
Key Companies Profiled | Sallie Mae (United States), LendKey (United States), CommonBond (United States), Discover Financial Services (United States), SoFi Technologies, Inc. (United States), MPOWER Financing (United States), Earnest (United States), Citizens Financial Group (United States), Nelnet, Inc. (United States), Ascent Funding (United States), College Ave Student Loan Servicing, LLC (United States), Purefy (United States), Wells Fargo (United States), Climb Credit, Inc. (Canada), Credible Labs Inc. (United States), EDvestinU (United States), Navient (United States) and Eduvanz (India) |
The global market consists of a large number of players. More companies are expected to expand their private student loan service offerings and increase the competition in the nearer future. Companies are also shifting towards innovative solutions to offer the best quality of services to their customers. Research Analyst at AMA predicts that United States Players will contribute to the maximum growth of Global Private Student Loans market throughout the forecasted period.
Sallie Mae (United States), LendKey (United States), CommonBond (United States), Discover Financial Services (United States), SoFi Technologies, Inc. (United States), MPOWER Financing (United States), Earnest (United States), Citizens Financial Group (United States), Nelnet, Inc. (United States), Ascent Funding (United States), College Ave Student Loan Servicing, LLC (United States), Purefy (United States), Wells Fargo (United States), Climb Credit, Inc. (Canada), Credible Labs Inc. (United States), EDvestinU (United States), Navient (United States) and Eduvanz (India) are some of the key players profiled in the study. Private Student Loans Market Segmentation:
Scope | Sub-Segments |
---|
Type | Bar Exam Loans, Bootcamp Loans, Credit Union Loans, International Student Loans, Medical School Loans, Institutional Loans and Others |
End Users | Students,Parents |
Interest Rate | Fixed-Rate,Variable Rate |
Distribution Channel | Direct to Consumer,School Certified |
Program Type | Undergraduate,Graduate,Postgraduate |
On the basis of geography, the market of Private Student Loans has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Increased Adoption of Innovative Technological Solutions like AI by Lenders to Directly Offer Loans to Students
Market Growth Drivers:
Growing Number of Student Population Globally and Requirement for Quality Education, Borrowing of Private Student Loans for Higher Educations like Post Graduation Courses, Medical Schools, Etc. and Dominance of Direct to Consumer Distribution Channel and Application of Private Student Loans for Tuition Fees and Living Expenses
Challenges:
Requirement of Co-Signers and Lack of Income-Driven Repayment Plans May Can Create Hurdles for the Market and Availability of a Large Number of Private Student Loan Providers in the Market
Restraints:
Higher Preference Towards the Federal Loans Among the Students Due to Fixed and Lower Interest Rates as Compared to Private Loans and Less Adoption of Private Student Loans by Low-Income Group People Due to Failing in Repayment of Loan
Opportunities:
Growing Popularity of Private Student Loans Among the International Students as Most of Them Cannot Qualify for Federal Loan
Key Target Audience
New Entrants/Investors, Analysts and Strategic Business Planners, Private Student Loans Providers, Venture Capitalists and Private Equity Firms, Regulatory Bodies and Others
In April 2022, Nelnet Bank, a leading provider of education lending for students and families launched private student loan to broaden its offering and provide a new flexible option to fulfill students’ college funding needs. The company offers private student loan with fixed & variable interest rates and a range of packages for undergraduates, graduates, MBA students, law students, and medical students.