WASHINGTON—Federally insured credit unions reported almost $4.1 billion in outstanding non-federally guaranteed student loans as of June 30, 2017. This is up 12.1% from a year ago, according to a new report.
According to data from NCUA, approximately $1.1 billion in non-federally guaranteed student loans were in deferred status as of the second quarter 2017, reported Keith Leggett, the former senior vice president and senior economist at the ABA, on his Credit Union Watch blog.
Navy Federal Credit Union had the largest amount of non-federally guaranteed student loans at almost $213 million, noted Leggett. The university of Wisconsin CU is second with $154 million.
As of June 30, 2017, $44.3 million of these student loans were 60 days or more past due. The delinquency rate on these loans were 1.09%, down 10 basis points from a year earlier, said Leggett.
“However, the reported delinquency rate includes loans in deferred status and thereby understates the true delinquency rate,” added Leggett.
In addition, credit unions reported $8.9 million in net charged-off student loans as of June 2017. This is more than double the number of net charge-offs from a year ago, which was $4.2 million, Leggett said.
Over the course of the last year, the net charge-off rate on non-federally guaranteed student loans increased by 22 basis points to 0.45%.
“Still, private student loans at credit unions outperform federally guaranteed student loans, which have a delinquency (90 days past due) and default rate of 11.2%,” Leggett pointed out.