Who Are Top 10 Originators of Federal Student Loans?

Posted on | March 10, 2010 | No Comments

Here are the top 10 originators of federal student loans, as measured by new guarantees in FY09 (in millions of dollars):

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Observations:

• Sallie Mae extended the distance between themselves and the rest of the field with a 47% surge in new guarantees which gives them a market share of 29%.  This surge has long term benefits for Sallie Mae on the servicing side too.  As one of the four companies selected to service loans sold to the Department of Education, Sallie will continue to service their own loans given the Dept.’s desire to avoid split servicing any of the loans put to them.
  • Since 2007, Sallie Mae has more than doubled their federal loan originations from $9.0 billion to $21.0.

• The consolidation of the FFELP originators continued in FY09 with the top 10 now representing 76.8% of all new guarantees vs. 71.9% in FY08 (Note:  Wells Fargo/Wachovia data was combined since WF acquired Wachovia in late 2008).  The top 100 originators now constitute 98.1% of all new guarantees vs. 95.7% in FY08.  So, the next time someone tells you that 2000 banks are making federal loans…well, almost all of the volume is coming from the top 100.

• On a percentage basis, Discover (605% increase) and PNC (109%) had the largest increases among the top 10 originators.

View full post on Student Lending Analytics Blog

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